Premium Bonds are an investment product issued by the National Savings and Investment (NS&I) agency. First introduced in 1956, some people opt to invest in Premium Bonds. Rather than earning interest or a regular dividend income, Premium Bond holders are entered into a monthly draw, where they may be selected to get between £25 and £1 million. A person needs to invest at least £25.
The maximum holding level is £50,000.
It’s possible to buy Premium Bonds for oneself, or on behalf of a child, grandchild, or great-grandchild.
But, what happens to Premium Bonds when a person dies – can Premium Bonds be transferred after death?
The NS&I offers guidance on what one should do with Premium Bonds following a bereavement.
If the deceased left a Will, then the person or people who are named as Executor would be responsible for dealing with the paperwork, and carrying out the specified wishes.
If there isn’t a Will and a Grant of Representation is needed, then a person or people will be appointed to deal with the estate – referred to as the Administrator, or the Executor Dative in Scotland.
Otherwise, the customer’s next of kin can deal with the estate.
The person responsible for sorting out the savings of an NS&I customer who has died will need to fill in a claim form.
It may be that Inheritance Tax is payable.
The NS&I explain that when it comes to savings, there are then a number of options detailed on the claim form, and these are the money being reinvested, transferred, or repaid.
However, this only applies to some NS&I savings products, with Premium Bonds, Children’s Bonds and Individual Savings Accounts unable to be transferred.