When someone dies with Premium Bonds, the Bonds become part of their estate. They cannot simply be transferred into another person’s name, but they do not necessarily have to be cashed in immediately.
One unusual feature of Premium Bonds is that they can remain eligible for NS&I’s monthly prize draws for up to 12 months after the holder’s death, unless they are cashed in sooner. This means Premium Bonds belonging to someone who has died can potentially continue winning prizes during this period.
Eventually, the Bonds will need to be dealt with as part of the administration of the deceased person’s estate.
This guide explains what happens to Premium Bonds after death, whether they can continue winning prizes, who receives any winnings, whether Premium Bonds can be inherited and what executors and family members need to do.
In this guide we cover:
What Happens to Premium Bonds After Someone Dies?
Premium Bonds do not disappear when their owner dies.
They form part of the deceased person’s estate and will ultimately need to be dealt with by the person responsible for administering that estate.
Depending on the circumstances, this might be:
- An executor named in the Will
- An administrator where there is no Will
- Another person legally entitled to deal with the estate
The Premium Bonds may eventually need to be cashed in and their value dealt with according to the Will or, where there is no valid Will, the applicable intestacy rules.
However, Premium Bonds are unusual because NS&I allows them to remain eligible for prize draws for a limited period following the holder’s death.
How Long Can Premium Bonds Stay in the Draw After Death?
Premium Bonds can remain eligible for prize draws for up to 12 months following the date of death, provided they have not been cashed in earlier.
For example, imagine Margaret dies while holding £30,000 of Premium Bonds.
Her executor does not necessarily have to cash them in immediately.
If the Bonds remain with NS&I, they can continue participating in eligible monthly prize draws during the 12-month period following Margaret’s death.
After that period, they are no longer eligible to win prizes.
This gives the person administering the estate some flexibility over when the Premium Bonds are dealt with, although the wider administration of the estate and the interests of the beneficiaries should also be considered.
Can Premium Bonds Still Win After Someone Dies?
Yes.
A deceased person’s Premium Bonds can potentially win prizes while they remain eligible for the draw during the 12 months following their death.
That means someone could die and subsequently have one of their Bond numbers selected for a prize.
The prize does not disappear simply because the registered holder has died.
Instead, NS&I has a procedure for dealing with prizes belonging to deceased customers.
What Happens If a Deceased Person Wins a Premium Bond Prize?
Once NS&I has been informed of the customer’s death, it will hold prizes won until the claim has been completed.
NS&I states that prizes are then paid by warrant, similar to a cheque, to the person entitled to the money.
If the deceased person’s Bonds remain in the draw afterwards, future prizes during the eligible period can also be sent by warrant after each prize draw.
This creates an unusual situation where the value associated with a deceased person’s Premium Bonds can continue changing after their death.
Example
Suppose Robert dies with £40,000 in Premium Bonds.
His Bonds remain in the prize draw rather than being immediately cashed in.
Four months after his death, one of the Bond numbers wins £1,000.
That prize can still be dealt with through the deceased customer’s estate arrangements even though Robert was no longer alive when the winning number was drawn.
What If They Won a Prize Before They Died but Never Claimed It?
This can also happen.
A person may have:
- An unclaimed Premium Bond prize
- A prize warrant that was never paid
- Old Bonds that family members did not know existed
- Changed address without updating NS&I
- Lost their original Premium Bond documentation
NS&I says that where a deceased customer had already received a prize warrant, it can be returned so that the prize can be reissued to the person entitled to the money once the claim has been completed.
There is also no time limit for claiming an unclaimed Premium Bond prize, according to NS&I’s tracing guidance.
This makes checking for Premium Bonds and outstanding prizes an important part of identifying a deceased person’s assets.
Do Premium Bonds Form Part of the Estate?
Yes.
NS&I’s current Premium Bonds terms state that when a holder dies, their Premium Bonds become part of their estate.
This means they should be considered alongside other assets belonging to the deceased, such as:
- Bank accounts
- Savings
- Investments
- Property
- Shares
- Personal possessions
The person administering the estate needs to establish what the deceased owned and deal with those assets appropriately.
This is one reason executors should take care when identifying assets. Premium Bonds can sometimes be overlooked, particularly where the deceased bought them many years ago or family members are unaware that they existed.
Can You Inherit Someone Else’s Premium Bonds?
Not in the sense of having the deceased person’s existing Premium Bond numbers transferred directly into your own name.
NS&I states that Premium Bonds must be repaid before the money can move into another person’s name.
The underlying value can, however, ultimately form part of what a beneficiary receives from the estate.
This distinction is important.
Suppose a Will states that a daughter should inherit her father’s estate.
If her father owned £20,000 of Premium Bonds, she would not simply become the registered holder of those same Bond numbers.
Instead, the Premium Bonds would be dealt with as part of the estate and their value could contribute towards the inheritance she ultimately receives.
If the beneficiary wants to hold Premium Bonds themselves, they would generally need to purchase Premium Bonds in their own name, subject to NS&I’s rules and holding limits.
Can Premium Bonds Be Transferred Directly to a Spouse?
A spouse or civil partner does not simply take ownership of the deceased person’s existing Premium Bond numbers.
This is different from certain assets that may pass automatically because of how they are owned.
Premium Bonds are held individually. NS&I does not offer them as joint savings accounts, and its current guidance says the Bonds must be repaid before moving into another person’s name.
Whether the surviving spouse ultimately receives the value of the Premium Bonds depends on the deceased person’s estate and how it is distributed.
That could depend on:
- The terms of the Will
- Other assets within the estate
- The beneficiaries named in the Will
- The intestacy rules if there is no valid Will
Who Is Responsible for Dealing With Premium Bonds After Death?
Where there is a Will, the executor will normally be responsible for dealing with the deceased person’s estate.
This includes identifying assets and contacting organisations holding the deceased person’s money or investments.
Where there is no Will, an administrator may instead become responsible for dealing with the estate.
NS&I itself distinguishes between these roles: an executor deals with the estate under a Will, whereas an administrator deals with an estate where there is no Will.
For Premium Bonds, the person dealing with the estate may need to:
- Establish whether the deceased held Premium Bonds.
- Find the relevant NS&I information where possible.
- Notify NS&I of the death.
- Provide information requested by NS&I.
- Determine whether the Bonds should remain in eligible prize draws temporarily or be repaid.
- Deal with any existing or subsequent prizes.
- Ensure the eventual value is properly accounted for within the estate.
Do You Have to Tell NS&I When Someone Dies?
NS&I should be informed when one of its customers has died so that the deceased customer’s savings and investments can be dealt with correctly.
The person dealing with the estate can start NS&I’s bereavement process and provide details of the person who has died.
This is particularly important with Premium Bonds because prizes won after NS&I has been notified of the death need to be dealt with through the deceased customer’s claim rather than being paid as though the account holder were still alive.
Should You Cash Premium Bonds in Immediately After Someone Dies?
Not necessarily.
NS&I allows Premium Bonds to remain eligible for prize draws for up to 12 months following the date of death.
However, that doesn’t automatically mean leaving them invested for the entire 12 months is always the appropriate decision.
The person administering the estate may need to consider:
- The terms of the Will
- The beneficiaries
- Other estate assets
- Whether money is required to settle estate liabilities
- The progress of the estate administration
- Their responsibilities when managing the estate
It is therefore better to think of the 12-month period as an option provided by NS&I, rather than a requirement to leave the Bonds in place.
Do Premium Bonds Earn Interest After Death?
No.
Premium Bonds do not pay conventional interest, either before or after death.
Instead, eligible £1 Bond numbers participate in monthly prize draws.
As of the September 2026 draw, NS&I lists the Premium Bonds prize fund rate as 4.35%, with odds of 21,000 to 1 for each eligible £1 Bond. These figures are variable and can change, so they should not be confused with a guaranteed interest rate or return.
For an estate, the relevant point is that eligible Bonds can continue participating in those prize draws during the permitted period following death.
What Happens After the 12 Months?
Once the period during which the deceased person’s Premium Bonds can remain eligible for prize draws has ended, the Bonds can no longer continue winning prizes.
They still need to be dealt with as part of the deceased person’s estate.
The 12-month rule therefore does not mean ownership passes to a beneficiary after 12 months or that the Premium Bonds can remain indefinitely in the deceased person’s name while continuing to participate in draws.
It is a temporary continuation of prize eligibility following death.
The underlying value remains an estate asset that ultimately needs to be administered appropriately.
Why Premium Bonds Can Be Easy to Miss When Someone Dies
One practical problem is simply discovering that the deceased owned them.
Someone may have bought Premium Bonds decades ago and have little obvious paperwork remaining.
Family members may know about the person’s:
- Home
- Bank account
- Pension
- Car
but know nothing about older savings and investments.
Premium Bonds can therefore form part of a wider hidden assets problem when administering an estate.
This is particularly relevant where the deceased managed their finances privately or accumulated different accounts and investments throughout their lifetime.
Finding and correctly identifying those assets is an important part of estate administration.
How Do You Tell NS&I That Someone Has Died?
When someone who held Premium Bonds dies, the person dealing with their estate should notify NS&I.
NS&I provides a specific bereavement process for dealing with the savings and investments of customers who have died.
The person making the claim will usually be:
- The executor where there is a Will
- The administrator where Letters of Administration have been obtained
- In some circumstances, an appropriate relative or other person entitled to deal with the money
NS&I provides both an online route and a bereavement claim form for notifying it about a deceased customer.
When making the claim, provide as much information about the deceased person’s NS&I holdings as you reasonably can.
What Information Will NS&I Need?
The precise requirements depend on the circumstances of the estate.
Useful information may include:
- The deceased person’s full name
- Their address
- Date of birth
- Date of death
- Premium Bonds holder’s number, if known
- NS&I number, if known
- Premium Bond numbers or records
- Details of other NS&I accounts or investments
- Details of the person dealing with the estate
Do not assume that you cannot make enquiries simply because you cannot find every Premium Bond certificate or account number.
Old investments are sometimes discovered with incomplete paperwork, and NS&I has procedures for tracing savings.
What Documents Are Needed When a Premium Bonds Holder Dies?
NS&I may need documents confirming both the death and the authority of the person dealing with the estate.
Where there is a Will, NS&I’s bereavement guidance says the executor should provide a registrar’s copy of the death certificate and the Will, with originals or appropriately certified copies where required.
Where there is no Will, the person dealing with the estate will still need to provide evidence of the death and may need appropriate authority to administer the estate.
NS&I will tell the claimant if additional documentation is required.
It is sensible to retain a record of:
- Premium Bond numbers
- Account or certificate numbers
- The Premium Bonds holder’s number
- The NS&I customer number
before sending original documentation anywhere.
Do You Need Probate to Cash in Premium Bonds After Someone Dies?
Not necessarily in every case.
This is an important point because people sometimes assume that a Grant of Probate is automatically required whenever somebody dies with Premium Bonds.
NS&I considers the value of the deceased customer’s total NS&I savings and the circumstances of the claim.
Its current bereavement claim documentation states that where the customer’s total NS&I savings are £5,000 or more, NS&I may require a Grant of Representation.
NS&I also reserves the right to request a Grant of Representation for savings of any value.
Therefore, £5,000 should not be treated as a universal rule that automatically determines whether probate is required for the entire estate.
It is an NS&I requirement concerning its own bereavement claims process.
Whether a Grant is required for the wider estate depends on all of the deceased person’s assets and circumstances.
What Is a Grant of Representation?
“Grant of Representation” is a general term relating to the legal authority to administer someone’s estate.
Where there is a valid Will and an executor is appointed, this will commonly involve a Grant of Probate.
Where someone dies without a Will, the appropriate application may instead result in Letters of Administration.
The grant provides evidence that the appropriate person has authority to deal with estate assets.
If you are dealing with a larger or more complicated estate, see Town & Country Law’s Probate Services for information about professional assistance with estate administration.
What Happens If There Is No Will?
Premium Bonds still form part of the deceased person’s estate even if they died without making a valid Will.
The difference is that there will not be an executor appointed by a Will to deal with the estate.
Depending on the circumstances, someone may need to apply for Letters of Administration and become the administrator of the estate.
The eventual distribution of the estate will be determined by the intestacy rules rather than instructions contained in a Will.
This means the deceased person’s Premium Bonds do not automatically pass to whichever family member finds the certificates or contacts NS&I first.
They remain part of the estate and must be dealt with accordingly.
How Do You Find Premium Bonds Belonging to Someone Who Has Died?
This can be one of the most important practical questions.
Family members may know that the deceased “had some Premium Bonds” without knowing:
- How much they held
- When they purchased them
- Their holder’s number
- Whether old certificates are still relevant
- Whether there are unclaimed prizes
- Whether they held other NS&I products
Start by looking through the deceased person’s financial records.
Useful places to check include:
- Bank statements
- Paper financial records
- Old Premium Bond certificates
- NS&I correspondence
- Emails
- Tax and financial documents
- Files containing investment information
However, the absence of paperwork does not necessarily mean there are no Premium Bonds.
What If You Don’t Know the Premium Bonds Holder’s Number?
Do not assume the money is lost.
A Premium Bonds holder’s number is used to group an individual’s Bonds together, but NS&I provides a tracing service for people who believe savings or investments exist but do not have sufficient details.
Information that may help identify Premium Bonds includes:
- Previous addresses
- Previous names
- Approximately when the Bonds were purchased
- Approximately how much was invested
- Old Bond records
- An NS&I number
- A holder’s number
- Other historical correspondence
The more information available, the easier it may be to identify the relevant holding.
Can You Trace Lost Premium Bonds?
Yes.
NS&I operates a Tracing Service for savings and investments where the relevant details have been lost or the person making the enquiry is unsure exactly what is held.
This can be particularly useful when administering an estate.
For example, you may find:
- An old letter mentioning NS&I
- A Premium Bond certificate from decades ago
- A reference to Premium Bonds in financial paperwork
- Evidence of payments to NS&I on an old bank statement
without having a complete record of the investment.
Rather than assuming the holding no longer exists, it may be appropriate to trace it.
Are Very Old Premium Bonds Still Valid?
Premium Bonds do not simply expire because they are old.
Provided Bonds were not previously cashed in, old Premium Bonds may still represent a valid holding.
This means finding an old certificate in someone’s belongings after their death should not be dismissed simply because it dates back many years.
The appropriate course is to establish whether the Bonds are still held and then deal with them as part of the estate.
How Do You Check Whether a Deceased Person Had Unclaimed Premium Bond Prizes?
Unclaimed prizes are another reason executors should investigate Premium Bonds carefully.
A prize may have gone unclaimed because the holder:
- Moved home
- Did not update their contact details
- Lost correspondence
- Changed their name
- Had outdated payment details
- Died before dealing with the prize
NS&I does not impose a time limit for claiming an unclaimed Premium Bond prize.
This means an old prize could potentially still be waiting even many years after it was originally won.
Where the relevant holder’s number is known, NS&I’s prize-checking facilities can help identify unclaimed prizes.
Where the necessary information is missing, the deceased customer’s estate may need to make enquiries through the appropriate NS&I process.
Why Checking for Unclaimed Prizes Matters
The scale of unclaimed Premium Bond prizes is substantial.
As of September 2026, NS&I reported that there were more than 2.85 million unclaimed prizes worth approximately £126.8 million.
This does not mean that every estate is likely to contain a forgotten prize.
It does demonstrate why executors should not automatically assume that the face value of known Premium Bonds represents everything connected with the holding.
If a deceased person held Premium Bonds for many years, checking for outstanding prizes should form part of the investigation.
What If You Find Premium Bonds After Probate Has Already Been Completed?
Sometimes an asset is discovered after an estate appears to have been fully administered.
For example, a family may find an old Premium Bond record months or years later.
The fact that the main estate administration has finished does not mean the newly discovered asset can simply be ignored.
The personal representatives may need to establish:
- Whether the Bonds remain valid.
- Their value.
- Whether there are unclaimed prizes.
- Who is entitled to the money under the Will or intestacy rules.
- Whether the discovery affects any previous estate administration or reporting.
The appropriate action will depend on the value of the newly discovered asset and the circumstances of the estate.
Professional advice may be sensible where significant assets are discovered after an estate has already been distributed.
What If There Are Several Beneficiaries?
Premium Bonds themselves are not divided by transferring individual Bond numbers between beneficiaries.
Instead, the Bonds are dealt with as an estate asset.
Suppose an estate contains:
- £30,000 in Premium Bonds
- £100,000 in bank accounts
- A property
- Other investments
and the Will says the residuary estate should be divided equally between three children.
The executor would normally deal with the estate as a whole.
The £30,000 Premium Bond holding forms part of the overall estate value rather than each child necessarily receiving £10,000 worth of the deceased person’s existing Bonds.
The eventual distribution depends on the Will, estate liabilities, other assets and the administration of the estate.
Can One Beneficiary Ask to Keep the Premium Bonds?
The deceased person’s existing Premium Bonds cannot simply be transferred into a beneficiary’s name.
If a beneficiary wants to hold Premium Bonds themselves, the existing Bonds first need to be dealt with through the estate.
The beneficiary could subsequently decide to purchase Premium Bonds in their own name, subject to NS&I’s rules at the time.
That would be a new holding belonging to the beneficiary rather than a continuation of the deceased person’s Bond numbers.
What Should an Executor Do With Premium Bonds? Step-by-Step Checklist
If you discover that someone who has died held Premium Bonds, the following checklist provides a useful starting point.
Step 1: Find the available records
Look for:
- Premium Bond certificates
- Bond records
- Holder’s number
- NS&I number
- Letters from NS&I
- Evidence of other NS&I savings
Do not worry if some of this information is missing.
Step 2: Establish whether there may be additional NS&I holdings
Do not assume the first document you find represents everything the deceased held.
Look through other financial records and consider tracing investments where appropriate.
Step 3: Notify NS&I of the death
Use NS&I’s bereavement process to inform it that the customer has died.
Provide as much identifying information as possible.
Step 4: Provide the requested documents
NS&I may request documents relating to:
- The death
- The Will
- The executor or administrator
- The legal authority to deal with the estate
Follow the requirements NS&I gives for the particular claim.
Step 5: Check for unclaimed prizes
Establish whether there are Premium Bond prizes that the deceased won but never received.
Remember that unclaimed prizes do not simply expire after a fixed number of years.
Step 6: Decide when the Bonds should be dealt with
Premium Bonds can remain eligible for prize draws for up to 12 months following the holder’s death unless they are cashed in earlier.
The executor should consider this in the context of the wider estate administration rather than treating the 12-month period as an automatic instruction to leave the Bonds untouched.
Step 7: Keep records of prizes received
If the deceased person’s Bonds win prizes while they remain eligible for the draw, make sure those amounts are properly recorded as part of the estate administration.
Step 8: Cash in the Premium Bonds when appropriate
The existing Premium Bonds cannot simply be transferred to a beneficiary.
They will ultimately need to be repaid and their value dealt with as part of the estate.
Step 9: Account for the money within the estate
The proceeds should be considered alongside the deceased person’s other assets, liabilities and the terms of the Will.
Step 10: Distribute the estate correctly
Once the administration has reached the appropriate stage, the estate can be distributed to the beneficiaries according to the Will or, if there is no Will, the intestacy rules.
A Current NS&I Bereavement Issue Executors Should Know About
NS&I announced an important bereavement claims update in May 2026.
It identified that, in some historic bereavement cases, its previous search process had failed to identify all the savings accounts held by a customer who had died.
NS&I says it has now changed the process so that current bereavement searches are more thorough.
It is contacting affected estates and arranging repayment where money should previously have been returned.
If you have recently submitted a bereavement claim or currently have one in progress, NS&I says you do not need to take additional action because the issue has been fixed for current claims.
However, the more thorough process has affected processing times.
NS&I reported in its May 2026 update that its response time for bereavement enquiries had increased to around eight weeks.
This is particularly useful context for executors currently waiting for a response and wondering why a claim is taking longer than expected.
Premium Bonds Are a Good Example of Why Executors Need to Search Carefully
Premium Bonds demonstrate a wider challenge when administering someone’s estate.
Not every asset will be immediately obvious.
Someone may have accumulated financial products over decades, including:
- Premium Bonds
- Bank and building society accounts
- ISAs
- Shares
- Pensions
- Other investments
Some may use old addresses or exist only in historic paperwork.
Executors therefore need to take reasonable care when establishing what belonged to the deceased before the estate is distributed.
Discovering a forgotten asset after beneficiaries have already been paid can make the administration considerably more complicated.
This is why identifying and valuing the deceased person’s assets is such an important early stage of probate and estate administration.
Frequently Asked Questions About Premium Bonds After Death
Can Premium Bonds Stay in the Draw After Someone Dies?
Yes. Premium Bonds can remain eligible for NS&I’s monthly prize draws for up to 12 months after the holder’s death, provided they have not been cashed in earlier.
After that period, the Bonds are no longer eligible for future prize draws.
Can Premium Bonds Win After the Owner Has Died?
Yes.
If the Premium Bonds remain eligible for the draw during the permitted period after death, they can still win prizes.
The death of the registered holder does not immediately remove the Bonds from eligible prize draws.
What Happens If Premium Bonds Win After Someone Dies?
Any prize still needs to be dealt with as part of the deceased customer’s financial affairs.
Once NS&I has been notified of the death and the relevant claim has been completed, prizes can be paid to the person entitled to receive the money on behalf of the estate.
Executors should keep appropriate records of prizes received during the administration.
How Long Can Premium Bonds Be Kept After Death?
Premium Bonds can remain eligible for prize draws for up to 12 months after the holder dies.
This does not mean the Bonds can remain indefinitely in the deceased person’s name while continuing to participate in prize draws.
They ultimately need to be dealt with as part of the estate.
What Happens to Premium Bonds After the 12-Month Period?
Once the 12-month period following death has ended, the deceased person’s Premium Bonds are no longer eligible to win prizes.
The underlying value does not disappear.
The Bonds still form part of the deceased person’s estate and need to be dealt with by the person responsible for administering it.
Do Premium Bonds Automatically Go to the Next of Kin?
No.
Being someone’s “next of kin” does not automatically transfer their Premium Bonds into your name.
The Bonds form part of the deceased person’s estate.
Who ultimately benefits from their value depends on matters such as:
- The terms of the Will
- The other assets and liabilities in the estate
- The beneficiaries
- The intestacy rules where there is no valid Will
The deceased person’s existing Premium Bond numbers cannot simply be transferred into a relative’s name.
Does a Spouse Automatically Inherit Premium Bonds?
Not simply because they were married to the Premium Bond holder.
Premium Bonds are individual holdings rather than jointly owned investments.
The deceased person’s Bonds become part of their estate and must be dealt with accordingly.
Whether a surviving spouse or civil partner ultimately receives some or all of their value will depend on the Will or, where there is no valid Will, the applicable intestacy rules.
Can Premium Bonds Be Left to Someone in a Will?
A Will can determine who should benefit from a person’s estate, including the value represented by their Premium Bonds.
However, the deceased person’s actual Premium Bond numbers cannot simply be transferred into the beneficiary’s name.
The Bonds must be dealt with through the estate.
A beneficiary who subsequently wants Premium Bonds can choose to purchase their own, subject to NS&I’s rules and investment limits at the time.
Can Premium Bonds Be Held Jointly?
No. Premium Bonds are held by individuals rather than as joint investments.
This is important after death because they do not operate in the same way as some jointly held assets.
The deceased person’s holding therefore needs to be identified and dealt with as part of their estate.
Do You Always Need Probate for Premium Bonds?
No.
A Grant of Representation is not automatically required simply because the deceased owned Premium Bonds.
NS&I’s requirements can depend on the total value of the deceased person’s NS&I savings and the circumstances of the claim.
NS&I’s current bereavement documentation says it may require a Grant of Representation where total NS&I savings are £5,000 or more, while reserving the right to request one for any value.
It is also important not to confuse NS&I’s requirements with whether a Grant is needed for the deceased person’s wider estate.
An estate containing property, bank accounts, investments and other assets may require a Grant even where the Premium Bond holding itself is relatively small.
Can You Cash Premium Bonds Before Probate?
It may be possible for NS&I to deal with certain lower-value bereavement claims without a Grant of Representation, subject to its requirements.
However, whether the Bonds can be repaid without a Grant depends on the circumstances.
Executors and family members should not assume that being named in the Will or being the deceased person’s closest relative automatically gives them immediate access to the money.
Can You Find Premium Bonds Without the Holder’s Number?
Potentially, yes.
If you believe someone who has died owned Premium Bonds but cannot find their holder’s number or complete documentation, NS&I provides tracing arrangements.
Providing information such as previous addresses, names and any known details about the investment can assist with the search.
This is why old paperwork referring to NS&I should not be discarded simply because it does not contain all the information you expect.
What If You Find an Old Premium Bond Certificate?
Do not assume it has expired.
If the Bonds were never cashed in, an old certificate may relate to an existing holding.
The appropriate step is to establish the current status of the Bonds with NS&I.
There may also be unclaimed prizes associated with an older holding.
Is There a Time Limit for Claiming an Old Premium Bond Prize?
NS&I states that there is no time limit for claiming an unclaimed Premium Bond prize.
That means an old prize does not simply disappear because many years have passed.
This can be particularly important when dealing with the estate of someone who held Premium Bonds for a long time or moved home without updating their records.
What If Premium Bonds Are Discovered Years After Someone Dies?
The asset should still be investigated.
If valid Premium Bonds or unclaimed prizes are discovered after the main estate administration has been completed, the personal representatives may need to deal with the newly identified money and determine who is entitled to it.
Depending on the circumstances, further estate administration or professional advice may be necessary.
Can an Executor Keep a Deceased Person’s Premium Bonds?
An executor does not become the beneficial owner of estate assets simply because they are responsible for administering them.
The executor must deal with the Premium Bonds as part of the estate and ultimately distribute the estate according to the Will and their legal responsibilities.
If the executor is also a beneficiary, those are two separate roles.
Can Beneficiaries Decide to Leave the Premium Bonds Invested?
The deceased person’s existing Bonds cannot simply be divided between beneficiaries and maintained indefinitely in their names.
NS&I requires the deceased person’s holding to be dealt with through the estate.
Individual beneficiaries who want to own Premium Bonds can subsequently purchase them themselves, subject to the rules applying at that time.
What Happens If There Is No Will and the Person Had Premium Bonds?
The Premium Bonds still form part of the estate.
However, there will be no executor appointed under a Will.
Someone entitled to administer the estate may need to apply for Letters of Administration, and the estate will ultimately be distributed according to the intestacy rules.
Premium Bonds do not automatically pass to the family member who discovers them.
Premium Bonds After Death: Example Scenarios
Understanding the rules can be easier through practical examples.
Example 1: Premium Bonds Continue Winning After Death
David dies in January with £40,000 in Premium Bonds.
His executor notifies NS&I but does not immediately request repayment of the Bonds.
The Bonds remain eligible for prize draws during the permitted period.
Several months later, one of David’s Bond numbers wins a prize.
The prize can still be dealt with as part of David’s financial affairs even though it was won after his death.
The executor should account for the additional money when administering the estate.
Example 2: Family Finds Old Premium Bonds
Margaret dies at 87.
Her daughter finds an old Premium Bond certificate while sorting through a filing cabinet but cannot find a holder’s number or recent correspondence.
The certificate should not simply be discarded because it is old.
The family can make enquiries to establish whether Margaret still had an NS&I holding and whether any unclaimed prizes exist.
This is a good example of why executors should investigate old financial records before assuming they have identified every asset.
Example 3: Three Children Inherit the Estate
Peter’s Will leaves his residuary estate equally between his three children.
At death he owns £30,000 in Premium Bonds alongside savings and other assets.
The children do not each receive £10,000 of Peter’s existing Premium Bond numbers.
Instead, the Premium Bonds are dealt with as part of the overall estate.
Once the estate has been properly administered, each child’s entitlement can be calculated according to the Will.
Example 4: Someone Dies Without a Will
Alan dies owning Premium Bonds but has never made a valid Will.
His daughter finds the paperwork and assumes the Bonds now belong to her because she is his closest relative.
That is not how ownership of the estate is determined.
The Premium Bonds form part of Alan’s estate and must be dealt with under the estate administration process. Who inherits their value will depend on the intestacy rules applying to his circumstances.
What Other Assets Should Executors Look For?
Premium Bonds are only one example of an asset that can be overlooked.
When identifying a deceased person’s estate, executors may also need to investigate:
- Current accounts
- Savings accounts
- Building society accounts
- ISAs
- Shares
- Investment accounts
- Pensions
- Life insurance policies
- Property
- Business interests
- Valuable personal possessions
- Digital financial assets
- Other NS&I products
Old bank statements, emails, correspondence and financial files can provide useful clues.
It is important to establish the estate as accurately as reasonably possible before assets are distributed to beneficiaries.
When Might Professional Probate Help Be Useful?
Some estates are relatively straightforward.
Others become more complicated because of the number of assets, beneficiaries or issues that need resolving.
Professional probate assistance may be particularly useful where:
- There are numerous savings and investment accounts
- Significant assets cannot initially be located
- Property forms part of the estate
- There are multiple beneficiaries
- The Will contains trusts
- The estate is intestate
- Beneficiaries disagree
- Assets are discovered after the estate has apparently been completed
- The executor is unsure about their responsibilities
- The estate administration has become difficult or time-consuming
Town & Country Law provides professional support with probate and estate administration.
You can learn more about Probate Services.
Preparing Your Own Estate: Make Premium Bonds Easier to Find
There is also a useful lesson here for people who currently own Premium Bonds.
Your executors cannot deal efficiently with an asset they do not know exists.
You do not necessarily need to put every account number or financial detail into your Will.
However, maintaining an organised record of your assets can make estate administration considerably easier for your family.
Consider keeping an up-to-date record showing that you hold:
- Premium Bonds
- NS&I products
- Bank accounts
- Investments
- Pensions
- Insurance policies
- Property
- Other significant financial assets
The record should be stored securely and reviewed periodically.
This can reduce the risk of valuable assets being overlooked after death.
Final Thoughts: What Happens to Premium Bonds When Someone Dies?
When a Premium Bonds holder dies, their Bonds become part of their estate.
However, Premium Bonds have an unusual feature: they can remain eligible for NS&I’s monthly prize draws for up to 12 months following the holder’s death, unless they are cashed in sooner.
During that period, the Bonds can still win prizes.
Eventually, the Bonds need to be dealt with as part of the estate. The deceased person’s existing Bond numbers cannot simply be transferred to a spouse, child or other beneficiary.
For executors, the important steps are to:
- Identify the deceased person’s Premium Bonds and other NS&I savings.
- Notify NS&I of the death.
- Check for unclaimed prizes.
- Provide any documentation NS&I requires.
- Establish whether a Grant of Representation is required.
- Keep records of any prizes received after death.
- Deal with the Bonds as part of the wider estate.
- Distribute the estate according to the Will or intestacy rules.
Where Premium Bonds cannot initially be located, old paperwork should not simply be dismissed. NS&I provides tracing arrangements, and unclaimed Premium Bond prizes do not have a fixed expiry date.
Taking time to identify and correctly deal with all of a deceased person’s assets can help executors administer the estate accurately and ensure that beneficiaries receive what they are entitled to.