How do we cash in £30,000 in Premium Bonds my father left?

Can you provide information on how the withdrawal of Premium Bonds works after the death of a partner?

My father recently passed away and we have contacted NS&I to have the bond account closed and the money, £30,000, transferred to my mother’s bank account.

We have provided it with a death certificate and all associated paperwork as requested.

After several weeks of no correspondence I contacted NS&I and they are refusing to make any payment, stating that this will have to go to probate.

We are worried because this could take a long time and this money is the only money my mother can live on. My father only brought Premium Bonds because he believed it would be a safe and convenient option should something happen to him. DS, by email

Helen Kirrane from This is Money replies: I’m sorry for your loss.

When someone passes away, all of their assets must be treated as part of the estate administration process. This includes property, personal effects and cash in savings and bank accounts.

An asset that is not discussed much as part of this process is Premium Bonds. Premium bonds are part of a person’s estate, just like a checking or savings account, so they must be treated when handling the assets.

However, unlike most other assets, Premium Bonds cannot simply be passed on to beneficiaries of the estate as they cannot be transferred to someone else’s name.

In addition to NS&I, I also spoke to a savings expert to ask how your mother can get the money.

A spokesperson for Savings Champion replies: The easiest way to claim Premium Bonds on behalf of a deceased loved one is to do so online, although postal forms can also be downloaded and mailed to NS&I.

Either way, the forms must be completed by the person legally entitled to claim their savings.

NS&I does not allow the Premium Bonds to be put in someone else’s name, so the bonds must ultimately be collected and paid out to the person entitled to the money.

While waiting for the account to be closed and the funds withdrawn, it may happen that the deceased’s property wins one of several prizes and they receive a prize order (like a check).

In these cases, you must return the prize receipt to NS&I, who will re-issue the prize voucher to the person entitled to the money – but only after the bereavement claim has been settled. After this, all future prizes won will be sent via writ to the person entitled to the money.

NS&I allows a decedent’s Premium Bonds to remain in the draw for up to 12 months, in possession of the estate, with any prizes won being paid out during that time as described above. After this time, the full amount will be refunded to the person entitled to the money and the account will be closed.

It does not advise on processing times for these types of bereavement claims, and the time required may depend on a number of factors, including the value of the deceased’s Premium Bonds.

Do you need inheritance law to include Premium Bonds?

Helen Kirrane from This is Money replies: Probate, or a Grant of Probate, is the legal document that grants the executor the right to administer the deceased’s estate. It is not mandatory on every death.

Each financial institution has its own individual threshold for how much money can be withdrawn before probate is required. This is generally between £5,000 and £50,000.

NS&I’s threshold is £5,000, so as your late father’s Premium Bonds are worth more than £30,000, probate is required.

A spokesperson for NS&I replies: If an NS&I customer dies, NS&I will notify the beneficiary of the savings whether a Grant of Probate (also known as a Grant of Representation or Grant of Letters of Administration) is required.

‘If savings with NS&I exceed £5,000, we can ask for a Probate. We have a limit of £5,000 because as a public authority we have responsibilities to ensure that public funds are protected and not endangered.

‘As a government, our risk policy is different from that of other commercial organisations.’