When you die, your Premium Bonds cannot be inherited or transferred to anyone else. They stay in the monthly prize draw for up to 12 months, then NS&I repays their full face value, plus any prizes won, into your estate. Your executor distributes that money under your will, or under the intestacy rules if there is no will.
This guide is for executors and families in England and Wales. Figures are current as at August 2026 and subject to change.
Can Premium Bonds be inherited or passed on?
No. Premium Bonds cannot be inherited, transferred or gifted to another person, not even to a spouse or civil partner. Each bond is registered to one holder, so on death NS&I cashes them in and repays the face value to the estate. The money can be inherited; the bonds themselves cannot.
This differs from a jointly held bank account, which can pass to the survivor. With Premium Bonds the holding ends with the holder. A surviving partner could use their inheritance to buy their own bonds instead.
Do Premium Bonds still win prizes after death?
Yes, for a limited time. Premium Bonds stay in the monthly prize draw for up to 12 months after the date of death (NS&I, as at August 2026). Any prizes won in that window are paid into the estate. After 12 months the bonds leave the draw and their value must be cashed in.
Once told of the death, NS&I holds any prizes and later pays them by warrant (similar to a cheque) to the estate once the claim is completed.
Should you leave the bonds in the draw or cash them in now?
Executors have a choice during the 12 months: leave the bonds in the draw for a chance of prizes, or cash them in straight away so the estate can be settled sooner. There is no single right answer. It depends on how quickly beneficiaries need the money and the size of the holding.
| Option | Why some choose it | The trade-off |
|---|---|---|
| Leave in the draw (up to 12 months) | A larger holding keeps a real monthly chance of prizes, paid into the estate. | Delays final distribution, and prizes are never guaranteed. Better suited to larger holdings. |
| Cash in now | Frees the money quickly so debts, tax and legacies can be settled without waiting. | Gives up any prizes the bonds might have won in the remaining months. |
How do you claim Premium Bonds after someone dies?
The executor or administrator tells NS&I using its bereavement claim service, online or by post, and provides a death certificate. NS&I bereavement claims currently take about eight weeks, longer than the 14 days many older guides still quote, following a 2026 overhaul of the process (NS&I, as at August 2026).
- Gather the details. Find the holder's number or NS&I account details and obtain a death certificate. Note the total value held across all NS&I products, as this affects whether probate is needed.
- Make a bereavement claim. Complete NS&I's claim online (no account needed) or by post, giving the deceased's details, the executor or administrator names, and where the money should be paid.
- Wait for NS&I to respond. NS&I aims to write within about eight weeks explaining the next steps, including whether it needs a grant of probate.
- Send any documents requested. This may include the death certificate and, for larger holdings, a grant of probate or letters of administration.
- Receive the funds. Once approved, NS&I pays the value and any prizes to the estate for distribution.
Do you need probate to cash in Premium Bonds?
It depends on the total held with NS&I. If the deceased's total NS&I savings were £5,000 or more, NS&I may ask for a grant of probate or letters of administration. Below £5,000, a death certificate and completed claim form are usually enough, though NS&I can request a grant for any amount.
| Total NS&I savings | What NS&I usually needs |
|---|---|
| Under £5,000 | Death certificate and a completed bereavement claim form, in most cases. |
| £5,000 or more | A grant of probate or letters of administration may be required before release. |
Source: NS&I, customers who have died, as at August 2026. For the wider picture, see our guide to what probate is and how it works.
Are Premium Bonds subject to inheritance tax?
Yes. Premium Bonds form part of the estate for inheritance tax, like any other savings, with no special exemption. Inheritance tax is charged at 40% on the value of an estate above the available thresholds, currently a £325,000 nil-rate band, frozen until 5 April 2031 (gov.uk, as at August 2026, subject to change).
A home passing to children or grandchildren can add a residence nil-rate band of up to £175,000 per person, and spouses can combine unused thresholds, potentially up to £1,000,000 between them (gov.uk, August 2026). Our guide to inheritance tax in England and Wales explains how the thresholds and reliefs fit together.
Frequently asked questions
Can you inherit someone's Premium Bonds?
No. Premium Bonds cannot be inherited or transferred to another person. NS&I cashes them in and pays the value to the estate, which is then distributed under the will or intestacy rules. A beneficiary can inherit the money, but not the bonds themselves.
How long does an NS&I bereavement claim take?
NS&I currently aims to respond within about eight weeks, longer than its former 14-day standard, after changes made to the bereavement process in 2026 (NS&I, as at August 2026). The full claim can take longer if a grant of probate is required.
Do Premium Bonds keep winning prizes after the holder dies?
Yes, for up to 12 months from the date of death. During that window the bonds stay in the monthly draw and any prizes are paid into the estate. After 12 months the bonds leave the draw and must be cashed in.
How do you cash in Premium Bonds for someone who has died?
The executor or administrator makes a bereavement claim to NS&I, online or by post, with a death certificate. For total NS&I savings of £5,000 or more, a grant of probate may be needed. NS&I then pays the value, plus any prizes, to the estate.