Do I Need Probate for Premium Bonds After Death?

Premium Bonds are held by NS&I (National Savings and Investments) and are one of the more straightforward assets to deal with in an estate. NS&I has a dedicated bereavement service, a clear process, and well-known thresholds for when probate is and is not required. The bonds cannot be transferred to another person - they must be repaid to the estate - and they continue to be entered in monthly prize draws for up to 12 months after the holder's death. Any prizes won during that period are paid to the estate.

Does probate depend on the amount held

NS&I applies a threshold to decide whether it needs the grant of probate (or letters of administration) before releasing funds:

• Under £5,000 in total NS&I holdings: NS&I will generally release funds without the grant of probate. You will need to complete their bereavement claim form and provide the original death certificate (or a certified copy). NS&I may accept a death certificate issued by the registrar electronically if submitted through their online bereavement service.
• £5,000 or above in total NS&I holdings: NS&I requires the grant of probate or letters of administration before releasing funds. The grant provides legal authority to deal with the estate, and NS&I will not release funds at this level without it.

The £5,000 threshold applies to the total value of all NS&I holdings in the deceased's name combined - not to Premium Bonds alone. If the deceased also held NS&I savings certificates or a Direct ISA alongside their Premium Bonds, the total is what matters. Our guide to when you need probate explains the broader context. For comparison with other institutions, see our guide to bank and provider probate thresholds.

Prize draws after death - what happens

Premium Bonds are entered in the monthly prize draw for 12 months after the date of death. Any prizes won during that period are paid to the estate and should be collected as part of the administration. After 12 months, the bonds are removed from the prize draw.

NS&I will not automatically notify you of prizes won after death - you should check when submitting the bereavement claim, and NS&I can tell you whether any prizes have been won in the period since the death. Prizes won by the deceased before their death but not yet paid are also owed to the estate.

There is no inheritance tax advantage to keeping the bonds in the draw - the bonds form part of the estate for IHT purposes at the date of death regardless of whether they are still winning prizes. The face value of the bonds is what is included in the estate valuation, not any future prize potential.

The NS&I bereavement process

NS&I has invested in its bereavement service and the process is relatively straightforward compared to some financial institutions. Here is how it typically works:

1. Notify NS&I of the death. You can do this online through the NS&I bereavement service, by phone, or by post. NS&I's bereavement helpline is available during standard business hours. When you notify them, they will freeze the bonds and tell you what they need next.
2. Complete the bereavement claim form. NS&I will send you a claim form (or you can download it from their website). The executor or administrator fills this in, providing their own details and confirming the authority to act.
3. Send the required documents. NS&I requires the death certificate (original or certified copy depending on how you are submitting), the completed claim form, and - if the holding is £5,000 or above - the grant of probate or letters of administration. If the bonds were registered to a specific address, NS&I may also request the bond holder's number if it can be found in the deceased's paperwork, though they can trace bonds by name and date of birth if the number is not available.
4. NS&I repays the bonds. Once they have everything they need, NS&I repays the full face value of the bonds, plus any unclaimed prizes, to the estate. Payment is made by BACS transfer to the executor's account or the estate's account.

NS&I is generally one of the quicker institutions to process bereavement claims once they have the correct documents. The delay in accessing Premium Bonds is most often caused by waiting for the grant of probate, not by NS&I's own processing time. Our guide to NS&I and Premium Bonds on bereavement covers this process in more detail.

Can Premium Bonds be transferred rather than cashed

Premium Bonds cannot be transferred from one person to another - not to a beneficiary, not to a spouse, and not to a trust. They can only be repaid to the estate. This is different from some other NS&I products and is a common source of confusion.

If a beneficiary wants to invest in Premium Bonds themselves, they can use the money received from the estate to buy new bonds in their own name. The annual limit for Premium Bond purchases applies to new purchases - receiving a payout from an estate does not bypass this.

For smaller estates where NS&I is the main or only asset, the relatively straightforward NS&I process means probate can sometimes be avoided entirely if the total NS&I holdings stay under £5,000. If the estate is more complex, probate will be needed regardless. See our guide to do I need probate to assess whether the full application is required for your situation.