Premium Bonds and Probate

Freyagirl

I am a joint executor, with the spouse of the deceased, of a mirror will.   I know there was a previous thread about NS&I requiring probate but it didn't cover my query, which is if we just wind up everything and leave the premium bonds where they are (it is the only organisation requiring probate) am I correct in assuming the money will just sit there and eventually form part of the estate of the surviving spouse?  The lady in question is in her late 70's and needs to move from where she is living quite urgently and obtaining probate will delay that move considerably as far as I can make out at the moment.

Flugelhorn

certainly the PBs can sit in the estate and win prizes for a year - after that they won't. I think though at some point you will need probate for the deceased to get the PBs even if the spouse dies

poppystar

Why would obtaining probate delay the lady moving? Surely she can do that now and if the premium bonds are the only asset that needs probate they can be dealt with later. 

Keep_pedalling

poppystar said:

Why would obtaining probate delay the lady moving? Surely she can do that now and if the premium bonds are the only asset that needs probate they can be dealt with later. 

Agree, If she is wanting to sell her home she does not need probate if she owned it jointly with her husband so applying for probate for other assets will not impact her move.

PBs can continue to be kept in the draw for 1 year after the death of the account owner but it will be best to get on with applying probate now as it does take some time to obtain.

Flugelhorn

Keep_pedalling said:

poppystar said:

Why would obtaining probate delay the lady moving? Surely she can do that now and if the premium bonds are the only asset that needs probate they can be dealt with later. 

Agree, If she is wanting to sell her home she does need probate if she owned it jointly with her husband so applying for probate for other assets will not impact her move.

PBs can continue to be kept in the draw for 1 year after the death of the account owner but it will be best to get on with applying probate now as it does take some time to obtain.

I didn't think probate for husband was needed if they jointly owned the home? I sold mother's property with only her probate and just sight of father's death cert  

Keep_pedalling

Flugelhorn said:

Keep_pedalling said:

poppystar said:

Why would obtaining probate delay the lady moving? Surely she can do that now and if the premium bonds are the only asset that needs probate they can be dealt with later. 

Agree, If she is wanting to sell her home she does need probate if she owned it jointly with her husband so applying for probate for other assets will not impact her move.

PBs can continue to be kept in the draw for 1 year after the death of the account owner but it will be best to get on with applying probate now as it does take some time to obtain.

I didn't think probate for husband was needed if they jointly owned the home? I sold mother's property with only her probate and just sight of father's death cert  

It’s not just going back to my post to add the missing ‘not’ 

Flugelhorn

Keep_pedalling said:

Flugelhorn said:

Keep_pedalling said:

poppystar said:

Why would obtaining probate delay the lady moving? Surely she can do that now and if the premium bonds are the only asset that needs probate they can be dealt with later. 

Agree, If she is wanting to sell her home she does need probate if she owned it jointly with her husband so applying for probate for other assets will not impact her move.

PBs can continue to be kept in the draw for 1 year after the death of the account owner but it will be best to get on with applying probate now as it does take some time to obtain.

I didn't think probate for husband was needed if they jointly owned the home? I sold mother's property with only her probate and just sight of father's death cert  

It’s not just going back to my post to add the missing ‘not’ 

ah the elusive "not" - makes sense 

bunnygo

NS&I probate limit is £5k for holdings with them. Bonds cannot be transferred to anyone (living or dead) so they will need to be cashed in. There is an option to leave them in the draw for 12 months after the death of the holder, after which they will be cashed in. The value will go to the beneficiary. Any winnings also go to the beneficiary (had this happen!)

if they are over £5k you WILL need probate to get the money from NS&I. As others note, that needn't delay the house move but after a year the money will sit earning no interest. Rather than kick the can down the road, do the probate application and get the money for this lady to use.

Misha96

A deceased relation held a small amount in Premium Bonds. Her husband forgot about them and they  were not included in her probated assets. When her husband recalled the bonds a couple of years later, NS&I demanded a copy of the Grant and the Will before releasing the value of the Bonds to him. There were no prizes.

Freyagirl

Thank you for the replies so far but you all seem to believe the property can be sold before probate is obtained and I have read this information 'In the UK, an executor cannot sell a property before obtaining probate without the necessary legal authority. Probate is required to confirm the executor’s authority to manage the estate, including selling property.'

It seems that  can take a minimum of four months from the time of applying, this means the spouse of the deceased is looking at at least another 6-9months before selling, as the property is big, in need of constant maintenance and she really want to move away from the isolated location she is in we really want to get it on the market as soon as possible.

Going back to the idea of leaving the premium bonds alone, yes eventually someone will need to get probate to access the money but with no other close family the bulk of the estate, when the spouse dies will go to charity and they will have the expertise and time to apply for probate.

RAS

At present, on-line applications with no queries seem to be processed in weeks rather than months, providing there is no IHT to pay. Have you clarified that situation?

Nothing to stop you marketing the property once you've applied for probate, as long as you tell your potential buyers what the situation is. You just cannot exchange contracts until probate is granted.