Premium Bonds/Tax Question ?

[ANDARIAL]

A family relation has recently died,they have a joint bank account with their husband and around £9000 in premium bonds
Premium bonds can remain `active` for up to 1 year,i believe after a persons death
If the husband has the bank account changed to read only his name ,if he then kept the bonds to `possibly` win over the next year,would there be TAXES on the amount of the then cashed in bonds?
or would it be better to cash in the bonds now and pay them into the existing joint account before informing the bank to change the name on the account to only his name
I said i would ask here before he goes to the CAB

 

[200sols]

A family relation has recently died,they have a joint bank account with their husband and around £9000 in premium bonds
Premium bonds can remain `active` for up to 1 year,i believe after a persons death
If the husband has the bank account changed to read only his name ,if he then kept the bonds to `possibly` win over the next year,would there be TAXES on the amount of the then cashed in bonds?
or would it be better to cash in the bonds now and pay them into the existing joint account before informing the bank to change the name on the account to only his name
I said i would ask here before he goes to the CAB

Assuming everything is going to the husband then there is no inheritance tax to pay.

 

[ANDARIAL]

yes it is going to the husband
he was worrying if he changed the joint account name and the bonds were in his wifes name would he be liable for any tax ,maybe income tax?he is retire for many years now
thank you for the response

 

[200sols]

yes it is going to the husband
he was worrying if he changed the joint account name and the bonds were in his wifes name would he be liable for any tax ,maybe income tax?he is retire for many years now
thank you for the response

There will be no taxes to pay so no need to worry about that. I'd recommend they follow these steps here rather than doing anything else.

What to do if an NS&I customer has died

The death of a loved one is always a difficult time. While looking after their finances, we are here to help and support you through this period.

www.nsandi.com

 

[mattyfez]

Yeh if there's any tax to pay its inheritance tax as the premium bonds are part of the estate like any other savings account.

But there's likely no inheritance tax as it's a spouse.

I'm not sure if he can simply put that account into his name directly or if he'll need to cash them out. If he's the sole beneficiary of the will, I don't suppose it really matters.

But if he's handling the affairs then he'll need to contact NS&I as above to sort it out.