Probate just for Premium Bonds?

P1Fanatic

I think I know the answer to this but just wanted a sanity check. My mother passed away last October and her will albeit very old, is very simple. My father (her husband) was named as the sole executor and beneficiary of her estate. Most of her bank and savings accounts have been straightforward to close or move to my father. However he informed NS&I of her death as she had the full Premium Bonds holdings in her name (he has the same in his name already) plus she had around £3k in a Guaranteed Growth Bond (that matures in April 2023). They have responded stating that as the value is in excess of £5k he needs proof of probate to get the money.

It's not something I have done before but reading up it can be done online but also requires valuation of estate & assets submission to HMRC even if IHT is not in play (as surviving spouse). But at the moment its only NS&I requesting probate so before I proceed I wanted to make sure there was no other way around it - especially after I read on a thread here that someone got £11k released without Probate. I think the fact we are talking about £53k means there is no way around it.

P1Fanatic

Looks like its a common story:

https://www.thisismoney.co.uk/money/saving/article-4085618/Why-pay-cash-loved-ones-Premium-Bonds-die-NS-demands-probate-just-5k-savings.html

Keep_pedalling

I don’t think there is a way round it, but as this is an exempt estate you don’t need to be two worried about the absolute accuracy in valuations of the more difficult assets such as chattels and her share of the home.

IHT 205 is not too difficult to complete.

P1Fanatic

Keep_pedalling said:

I don’t think there is a way round it, but as this is an exempt estate you don’t need to be two worried about the absolute accuracy in valuations of the more difficult assets such as chattels and her share of the home.

IHT 205 is not too difficult to complete.

Thanks for that. Good to know about the IHT 205. Typically it looks like things just changed earlier this year which make things a tad easier:

https://www.gov.uk/applying-for-probate/before-you-apply

If there’s no Inheritance Tax to pay and the person died on or after 1 January 2022

You’ll need to report estimates of the estate’s value as part of your probate application. You do not need to also report it to HMRC

JGB1955

Since the death occurred BEFORE Jan 1 2022, the 'old' IHT205 will apply.  It's really not difficult though.  Good luck!

P1Fanatic

JGB1955 said:

Since the death occurred BEFORE Jan 1 2022, the 'old' IHT205 will apply.  It's really not difficult though.  Good luck!

Yep. By "typically" I meant we missed the cutoff date so not in our favour. But good to know IHT205 is fairly straightforward (at least in my case).

P1Fanatic

Another question if I may re: IHT205. I cant find anything on which party should complete this form. It would make sense to be my Dad (as sole executor and beneficiary of the will) but I see you need to login with Govt Gateway ID which I am pretty sure he wont have. So am wondering if I can do it on his behalf but obviously list him as the executor etc?

Suffolksue

Good Luck withNS&I !
They made me get Probate for my late DH for a much smaller number of Premium Bonds 
they were then as unhelpful as possible 
By contrast the Probate Office was extremely helpful ( though I know others had problems with them) and Probate was quite straightforward on line 

Savvy_Sue

P1Fanatic said:

Another question if I may re: IHT205. I cant find anything on which party should complete this form. It would make sense to be my Dad (as sole executor and beneficiary of the will) but I see you need to login with Govt Gateway ID which I am pretty sure he wont have. So am wondering if I can do it on his behalf but obviously list him as the executor etc?

I don't know, but for my late mother we set up a number of accounts for her on the likes of Amazon, which she never used, but we were able to use her laptop to order things for her. Even if Dad does not have his own laptop, you could, I believe, help him set up a Gateway account. That's if it has to be done in his name. It can be kept secure to him, if he's worried about this, by using his phone no. for the access code.