Widow facing £2,600 bill to access late husband’s £48,000 Premium Bonds savings

Widow Faces £2,600 Bill to Access Late Husband’s Premium Bonds Savings

A widow, known as Mrs Jones, is facing a hefty bill of over £2,600 in order to access the £48,000 Premium Bonds savings left to her by her late husband. Despite being the sole beneficiary and executor of her husband’s Will, Mrs Jones has been informed that she will need to apply for Probate due to NS&I rules, as the Premium Bonds holding exceeds £5,000.

The NS&I website states that the limit for requiring Probate is £5,000, but the organization has indicated that in certain circumstances, the threshold is actually £30,000. Mrs Jones has been quoted a staggering £2,669.75 by a solicitor to handle this matter.

In a heartbreaking statement to GB News, Mrs Jones expressed her fear of the costs, stating, “I need these savings now to start paying the bills.” She went on to say, “I am devastated. I have spent our savings on funeral costs. It’s very wrong that a widow can’t access her own money without losing so much to a solicitor.”

The couple, who were married for over 60 years, had each invested money in Premium Bonds after a windfall. Mrs Jones reminisced about her late husband, describing him as the bravest man she had ever met. Before his passing from a terminal illness last summer, they had discussed withdrawing the Premium Bonds to help Mrs Jones financially.

Despite Mr Jones’ attempts to withdraw the funds before his passing, NS&I claimed they had no record of such a request. Mrs Jones explained that they had transferred all other accounts before his death, but NS&I had refused to process the Premium Bonds withdrawal at the time due to his illness.

NS&I stated that a Grant of Probate is required for savings over £5,000, as mandated by the National Savings Bank Act 1971. However, for cases where the beneficiary is the sole executor/beneficiary, the threshold has been raised to over £30,000.

Financial planner Carolyn Matravers advised that while the cost quoted by the solicitor may seem high, the nature and size of the estate can impact the associated costs. NS&I clarified that Premium Bonds cannot be inherited or transferred, but can remain in the monthly draws for up to 12 months after the customer’s death.

The widow’s plight sheds light on the challenges faced by individuals navigating the complexities of probate and inheritance rules. As Mrs Jones grapples with the financial burden of accessing her late husband’s savings, her story serves as a poignant reminder of the importance of seeking professional guidance in estate planning matters.