Premium Bonds - Probate

wolfboy

I am querying a decision made by NS&I on behalf of my Mother Law.

She recently lost her husband and they each have the maximum invested in premium bonds.
My Mother Law filled out the appropriate NS&I form and supplied a death certificate and a copy of the will.

NS&I have replied saying that because the amount invested is over £5000, probate will be necessary before she can access the funds. They are also offering to arrange probate for a fee of several hundred pounds.

I don’t understand this decision as all other property and funds has automatically been transferred as you would expect for a married couple with will in place.

Has anyone come across this before? Can we challenge their decision? The only reason they have given, is that the amount invested is over £5000. I don’t understand how the amount is relevant as long as all the legal paper work is correct.

Many thanks in advance.

Martin

xylophone

https://www.co-oplegalservices.co.uk/media-centre/articles-apr-jun-2019/is-probate-needed-for-premium-bonds/

getmore4less

Institutions don't have to act on death certificate and will they can ask for a grant on any estate, many have higher limits and ask for an indemnity many are under the max premium bond holding of £50k.


With premium bonds unless you have an alternative investment in mind they can be left for a year to accumulate more prizes tax free

wolfboy

Yes, there is no hurry, It just feels like they taking advantage of the situation to get some extra cash. Thanks for your response.

Zanderman

wolfboy wrote: »

Yes, there is no hurry, It just feels like they taking advantage of the situation to get some extra cash. Thanks for your response.

It would appear, from the link xylophone gave above, that the £5000 trigger for probate is in NS&I's rules - and whilst it may seem petty-minded of them, rules is rules. I doubt they see it as taking advantage - they probably assume most people with £5k in premium bonds would need grant of probate for the estate anyway. Though the £5k trigger is, compare to other banks etc, rather low.

If you haven't had to get probate for the rest of the estate I can see why this would frustrate you - but if you need to get probate for this and you know the rest of the estate already then I'd suggest you do it yourself - it can be fairly straightforward - official guidance is at https://www.gov.uk/applying-for-probate

wolfboy

Thanks for your help, I will look into it.

G_M

If the Estate is not complicated, and assuming she is a named Executer of the will, it is not difficult to DIY.

Inheritance Tax complexity depends on the value of the Estate, and how diverse the various asstes are. Oh, and whether there are debts.

But it can be time-consuming; there's a learning curve; it can be emotive (going through & dealing with a loved-ones affairs).

An alternative is to employ a professional: NS&I, a bank, or a Probate solicitor as with everything, shop around! The Executer still has do a certain amount of work though in order to know what to give the professional....!

badger09

xylophone wrote: »

https://www.co-oplegalservices.co.uk/media-centre/articles-apr-jun-2019/is-probate-needed-for-premium-bonds/

That is Co-op Legal Services interpretation.

NS&I Bereavement Guide says Probate may be required if amount is over £5k
https://www.nsandi.com/system/files/asset/pdf/death-claims-brochure.pdf

As Executor of my late sister's estate last year, NS&I released over £11k to me without Probate. I suspect they want it from MIL because of the £50k investment.

OP for a simple estate, probate is very straightforward and does not need solicitor or other 'professional' assistance.

There is a very helpful board here
https://forums.moneysavingexpert.com/forumdisplay.php?f=217

Boleyn19

My brother and I have done probate ourselves three times, one simple, one in Scotland and one more complex. If it is simple do save yourself the money. The Forum mentioned above is excellent and HMRC and probate lines are extremely helpful.

polymaff

And, at least, the Government has dumped its plans for a probate-based Death Tax.


A small victory - if they really mean it.