Premium Bonds after a death

dollylovesshoes

We lost Mum in August and kept her PB’s going until we got the grant of probate. She won £25 in November but NS&I won’t pay the estate as she’d signed a mandate to re-invest and purchase bonds with her winnings. They say that bond is void as you can’t purchase more bonds after death. Surely they should then pay the £25 to the estate instead? 

For us it’s only £25 but what if it had been, say, £10,000? Anyone else had this issue? 

Woodstok2000

Surely it's the mandate thats void, not the bond? That would be my argument.

eskbanker

If a Premium Bonds holder dies, their Premium Bonds become part of their estate. The Premium Bonds will continue to take part in prize draws for 12 months following the date of death, unless they are cashed in before that

https://www.nsandi.com/files/asset/pdf/premium-bonds-brochure.pdf

There isn't any more detailed explanation but I don't see how they can assert that bonds will continue to take part in draws but that they're not actually eligible to win prizes as such?

DavidT67

dollylovesshoes said:

We lost Mum in August and kept her PB’s going until we got the grant of probate. She won £25 in November but NS&I won’t pay the estate as she’d signed a mandate to re-invest and purchase bonds with her winnings. They say that bond is void as you can’t purchase more bonds after death. Surely they should then pay the £25 to the estate instead? 

For us it’s only £25 but what if it had been, say, £10,000? Anyone else had this issue? 

This doesn't align with our recent experience.  Did you inform NS&I promptly of the death of the holder and complete the death claim form regarding how bonds should be managed until released to the executors ?

Our mother also had prizes reinvesting prior to her death.  After we completed the form, NS&I held the prizes back until they received a copy of the grant of probate, then sent multiple bank warrants via post for the prizes, whilst transferring the bond balance to the executor account.

kipsterno1

Like any financial institution the executor of the estate should have informed them of the death.
They can't reinvest as the holder has passed away but they also can't payout until the executor has informed them that they are administrating the estate and completed the associated paperwork.

BooJewels

I had the same experience as @DavidT67 - my aunt had won a couple of £25 prizes between death and NS&I settling matters with me as the executor - we didn't need Probate, as just below £5k (although already applied for and we expected them to ask and wait for it) and they settled the account balance by bank transfer to the estate account I'd specified, but issued 3 separate paper warrants for £25 each for the two prizes I knew about, plus another from 6 months earlier where she must have won a re-allocated prize.

If bonds can stay in the draw for 12 months after death, I'm not sure how it can't be valid to pay it out.