When a Premium Bond holder dies, the bonds cannot be passed on or transferred to anyone else. Instead they are repaid to the estate, and the money is shared according to the will or the rules of intestacy.
Premium Bonds are held by one named person, so they do not automatically go to a spouse, partner or next of kin. The executor or administrator deals with them as part of the estate. There is one useful feature: the bonds can be left in the monthly prize draw for up to 12 months after death, so the estate can still win tax-free prizes during that time (NS&I, as at August 2026, subject to change). This guide explains how that works, how to make a claim, and where probate fits in. It describes the position in England and Wales.
The short answer
Premium Bonds do not die with the person, but they are not inherited in their existing form either. NS&I is a single-holder product, so the bonds cannot be held jointly and cannot simply move into another name. When the holder dies, the personal representative (the executor named in the will, or the administrator where there is no will) claims the value and either has it repaid or keeps the bonds in the draw for the remainder of the 12-month window before repayment.
| Premium Bonds at a glance | Detail (August 2026) |
|---|---|
| Held in whose name | One named person only; cannot be held jointly |
| On death | Cannot be inherited or transferred; repaid to the estate |
| Prize draw after death | Eligible for up to 12 months from the date of death |
| Prizes in that window | Belong to the estate, paid by warrant (cheque) |
| Maximum holding | £50,000 |
| Prize range | £25 to £1 million, tax-free |
Sources: NS&I bereavement guidance and NS&I Premium Bonds, as at August 2026, subject to change.
Can Premium Bonds be inherited or transferred?
No. Unlike some other NS&I products, Premium Bonds cannot be transferred into another person's name. NS&I confirms that "Premium Bonds and Direct Saver accounts must be repaid before moving into another person's name" (NS&I, as at August 2026, subject to change). In practice this means the holding is cashed in, and the cash forms part of the estate. A beneficiary who wants Premium Bonds of their own would buy new ones in the usual way, subject to the £50,000 limit and their own circumstances.
Because the bonds are dealt with through the estate, who ultimately receives the money depends on the will, or the intestacy rules where there is no valid will. This is one reason a clear, up to date will matters: it decides where the proceeds go.
How long do Premium Bonds stay in the prize draw?
NS&I allows Premium Bonds to stay in the monthly draw for up to 12 months after the date of death, held in the name of the person who died (NS&I, as at August 2026, subject to change). Any prizes won during that period belong to the estate and are paid out by warrant to the person entitled to receive them. At the end of the 12 months the bonds are no longer entered, and the value is repaid.
The personal representative does not have to wait the full year. They can ask for the bonds to be repaid at any point once the claim is settled. Leaving them in keeps the estate in the draw a while longer; cashing in early brings matters to a close sooner. Neither approach is right for everyone, and the choice sits with the personal representative.
How to claim Premium Bonds after a death
NS&I is not covered by the Tell Us Once service, so it needs to be told separately. The claim is made through the NS&I bereavement process, which can be completed online or by post, and you do not need to open an NS&I account to use the online form (NS&I, as at August 2026, subject to change).
| Step | What is involved |
|---|---|
| 1. Gather details | The holder's NS&I details if known, the death certificate, and details of the executor or administrator |
| 2. Complete the claim form | NS&I's bereavement claim form, online or by post |
| 3. Provide documents | A certified death certificate and, where required, a grant of representation (see below) |
| 4. Decide on the draw | Leave the bonds in for up to 12 months, or ask for repayment |
| 5. Repayment | NS&I repays the value to the estate once the claim is settled |
Process summarised from NS&I bereavement guidance, as at August 2026, subject to change. NS&I currently notes longer response times than its usual timescales for bereavement enquiries; check the live page for current guidance.
Do you need probate for Premium Bonds?
It depends on how much the person held with NS&I in total. NS&I may ask for a grant of representation (a grant of probate where there is a will, or letters of administration where there is not) if the customer's total NS&I savings are £5,000 or over (NS&I, as at August 2026, subject to change). That £5,000 figure is measured across all NS&I products combined, not per product.
Below that level, NS&I can often release the money on a completed claim form and a death certificate, without a grant. The wider estate may still need probate for other reasons, such as property or other institutions with their own thresholds. Our guide to what probate is and when it is needed sets out the general position, and the government's overview of wills, probate and inheritance (gov.uk, as at August 2026, subject to change) is a useful starting point.
Premium Bonds and inheritance tax
Premium Bond prizes are free of UK income tax and capital gains tax, but the bonds themselves still count as part of the estate for inheritance tax. Their value on the date of death is added to everything else the person owned when working out whether any inheritance tax is due. Inheritance tax is charged at a standard rate of 40% on the part of an estate above the available tax-free thresholds, with the nil-rate band at £325,000 (gov.uk, as at August 2026, subject to change). As announced at the Autumn Budget 2025, these thresholds are frozen until 5 April 2031, the end of the 2030 to 2031 tax year (gov.uk, Inheritance Tax thresholds, Budget 2025, published 26 November 2025).
For most estates that fall within the thresholds, no inheritance tax arises on the bonds. Where an estate is larger, the bonds are treated like any other asset. Our inheritance tax guide explains how the thresholds and reliefs work, and wider estate planning can consider how assets like these sit alongside a will and other arrangements.
Scotland and Northern Ireland
NS&I's rules for Premium Bonds apply across the UK, so the 12-month draw window and the way bonds are repaid rather than inherited are the same wherever the holder lived. What differs is the surrounding estate administration. Scotland uses confirmation instead of a grant of probate and has its own succession law, and NS&I's £5,000 threshold there refers to confirmation. Northern Ireland has a separate but broadly similar system to England and Wales. Where an estate crosses more than one jurisdiction, it can be worth checking the process that applies in each.
Frequently asked questions
Can Premium Bonds be passed on to a spouse or child?
Not directly. Premium Bonds are held in one person's name and cannot be transferred to anyone else, including a spouse or child. On death they are repaid to the estate, and the money then passes under the will or the intestacy rules (NS&I, as at August 2026, subject to change).
How long do Premium Bonds stay in the prize draw after death?
Up to 12 months from the date of death, in the name of the person who died. Any prizes won during that period belong to the estate and are paid out by warrant. After 12 months the bonds stop being entered and the value is repaid (NS&I, as at August 2026, subject to change).
Do you need probate to cash in Premium Bonds?
NS&I may ask for a grant of representation where the person's total NS&I savings are £5,000 or more, measured across all NS&I products. Below that, a claim form and death certificate are often enough. The wider estate may still need probate for other reasons (NS&I, as at August 2026, subject to change).
What happens to Premium Bond winnings after the holder dies?
Prizes won in the 12 months after death form part of the estate rather than going to any one relative. NS&I pays them by warrant to the person entitled to receive estate funds, usually the executor or administrator (NS&I, as at August 2026, subject to change).
Are Premium Bonds subject to inheritance tax?
The prizes are tax-free, but the value of the bonds is still part of the estate for inheritance tax. It is added to the rest of the estate when checking against the thresholds, with the standard rate at 40% above the available nil-rate band of £325,000 (gov.uk, as at August 2026, subject to change).
How do you notify NS&I that a bond holder has died?
NS&I is not part of the Tell Us Once service, so it must be told separately. You do this through its bereavement process, online or by post, without needing to open an account. NS&I asks for a death certificate and, where required, a grant of representation (NS&I, as at August 2026, subject to change).