NS&I is one of the largest savings organisations within the UK, and therefore the recent headlines of “missing savings” and “prizes withheld” are alarming for everyone, not least the bereaved families whose loved ones held accounts with government-backed NS&I.
What is NS&I?
Originally established as the Post Office Savings Bank, National Savings & Investments (NS&I) is a government-owned savings provider in the UK, best known for its Premium Bonds product. Rather than paying interest, Premium Bonds offer entry into monthly prize draws, with two £1 million prizes and a range of smaller awards.
What other types of savings products do NS&I offer?
NS&I also offers other savings products, including ISAs and Income Bonds, the latter providing monthly interest payments. All funds held with NS&I are backed by HM Treasury, meaning savers benefit from a government guarantee, offering greater protection than that typically available through banks and building societies.
With no high street branches, NS&I are only contactable remotely. Money earned from NS&I customers and through its savings accounts and bonds offerings are used to fund public spending, and all deposits are backed by the UK Government with no upper limit, unlike the FSCS offered by the majority of high street banks.
How Does an NS&I Bereavement Claim Work?
When someone dies, their executors (if there is a Will) or personal representatives (if there is not) are responsible for notifying NS&I of the death, usually by providing a death certificate and relevant estate details.
Once notified, NS&I will carry out checks to identify any accounts or investments held by the deceased, including Premium Bonds, savings certificates, ISAs and Income Bonds. This step is intended to ensure that all holdings are correctly located, even where accounts may have been opened many years earlier.
NS&I will then provide instructions on how the accounts can be closed and the funds released. This typically involves completing bereavement claim forms and supplying evidence of authority to act on behalf of the estate.
Is Probate always required?
Whether probate is required will depend on the value of the NS&I holdings and the wider estate. Smaller balances may be released without probate, whereas larger estates will usually require a grant of probate (or letters of administration) before funds can be encashed and distributed to beneficiaries.
An executor is the person (or people) appointed in a Will to deal with the administration of the deceased’s estate after their death. Their role is to ensure that the deceased’s wishes, as set out in the Will, are carried out properly.
This typically includes identifying and collecting assets, settling any debts and liabilities, dealing with tax affairs, and distributing the remaining estate to the beneficiaries named in the Will. Executors may also be required to apply for a grant of probate, which provides them with the legal authority to deal with certain assets, such as bank accounts or investments.
Executors carry significant legal responsibility and must act in the best interests of the estate and its beneficiaries throughout the administration process.
Personal representatives is the legal term used to describe the individuals responsible for administering a deceased person’s estate. This includes executors where there is a valid Will, or administrators where there is no Will (intestacy).
In practical terms, personal representatives carry out the same core duties: identifying and valuing the estate, collecting assets, paying any debts and taxes, and distributing the estate to the rightful beneficiaries. Where a Will exists, the named executors automatically become the personal representatives once probate is granted.
They are legally responsible for ensuring the estate is administered correctly and in accordance with either the Will or the rules of intestacy, depending on the circumstances.
What Has Gone Wrong with NS&I Bereavement Claims?
It has recently been revealed in the news that up to 37,500 bereavement claims have been affected due to NS&I having lost track of investments and withholding premium bond prizes from the families of their deceased customers. That said, work to identify the affected parties is still underway so the true scale of the tracing issue isn’t certain.
Despite this issue only recently making the headlines in March 2026, it has been reported that the problem was initially reported to Government ministers in December 2025.
NS&I have explained that there had been errors in identifying all deceased account holders NS&I accounts, which in turn meant that executors and personal representatives were not always repaid money from all of the deceased’s accounts despite lodging bereavement claims in the correct manner.
What Is Probate?
The word probate is used to describe the process involved in dealing with the administration of a person’s estate when they have died. Probate can also be used to describe the legal document giving authority to the person or persons to administer the deceased’s estate. Read more…
What is NS&I’s Response to Missing Savings and Withheld Premium Bond Prizes?
NS&I have now advised that the identification issue has been resolved and that stringent measures have been put in place to ensure that no such issues happen again. Although this is little comfort for those battling to get their money back.
NS&I have confirmed that most cases affected relate to bereavements from 2008 – 2025, and it is estimated that the money owed from NS&I to the affected deceased estates could be up to £476 million. NS&I have been criticised by the financial ombudsman for repeatedly stating that its figures were accurate and correct, with this insistence only serving to prolong the investigation.
To date, NS&I have hired new staff to assist with making contact with the affected families and they will publish details of how they will reimburse the “missing” funds. As NS&I is government backed, the funds are protected, however it is likely to take some time for NS&I to reconcile the funds with the correct people.
What are the Tax Implications and What Should Affected Families Should Consider?
Where missing NS&I funds are later identified and returned to an estate, this can have knock-on tax consequences that executors and personal representatives will need to consider. Although the recovery of assets is beneficial, it may increase the overall value of the estate and affect its tax position retrospectively.
In particular, inheritance tax (IHT) may need to be reassessed if the additional funds change the estate’s total value. This could result in further tax becoming payable or require amendments to previously submitted IHT accounts to HMRC.
There may also be capital gains tax (CGT) considerations depending on how the estate has been administered, particularly where assets have been sold or invested during the administration period. In addition, any interest or compensation paid alongside the returned funds may itself have tax implications.
Given the complexity, executors may wish to seek professional advice to ensure the estate is correctly reported and any tax liabilities are properly addressed.
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Do You Need to Take Action on an NS&I Bereavement Claim?
NS&I has confirmed that it is working to identify and contact affected estates in relation to the bereavement claims issue and any missing or unallocated savings. Where an estate is impacted, NS&I will contact executors or personal representatives directly with details of any funds due and how these will be returned.
NS&I has also advised that it is not necessary to use claims management companies, as this is unlikely to speed up the process and may result in avoidable costs.
However, executors should still ensure that all NS&I assets have been properly included in the estate administration. Where there is uncertainty or concern about missing funds, legal advice may be helpful to ensure the estate is fully and correctly administered.
Contact our Wills & Probate Solicitors today for Advice
At Thornton Jones Solicitors, our specialist Private Client and Wills & Probate team advises individuals, executors and families dealing with estate administration issues, including complex bereavement claims involving financial institutions such as NS&I.
We can assist you by:
- Advising on your duties as an executor or personal representative
- Helping you trace and identify missing assets within an estate, including NS&I savings and Premium Bonds
- Guiding you through the probate process where required
- Assisting with correspondence and claims to financial institutions
- Advising on delays, discrepancies, or missing funds in estate administration
- Supporting you with any tax considerations arising from delayed or additional estate assets
Dealing with an estate can be complex, particularly where assets are missing, delayed or incorrectly recorded. If you are concerned about NS&I bereavement claims or believe an estate may be owed funds, our team can provide clear, practical legal advice tailored to your circumstances.
To speak to our friendly Wills & Probate team, please call 01924 290 029 or contact us using our online enquiry form.
Wills and Probate Solicitors FAQs
If you believe funds may be missing, you should first ensure that a bereavement claim has been properly submitted to NS&I. If this has already been done, it is advisable to wait for NS&I to contact you, as they have confirmed they are proactively identifying affected cases.
If you remain concerned, executors or personal representatives can contact NS&I directly to request a review of the deceased’s accounts and confirm whether all funds have been accounted for.
NS&I offers a tracing service as part of its bereavement process. Executors or personal representatives can submit details of the deceased, and NS&I will attempt to locate any accounts or investments held in their name.
This is particularly important where paperwork is incomplete or where the deceased held Premium Bonds or older savings products.
Not always. Whether a grant of probate is required depends on the value of the assets held with NS&I. For lower-value holdings, NS&I may release funds without a grant. However, for larger estates, probate is usually required before funds can be encashed and distributed.
NS&I has stated that it is working to identify affected customers and will contact families directly where issues are found. However, given the scale of the problem and the time period involved, executors may wish to be proactive if they suspect something has been missed.
In addition to the return of any missing funds, affected estates may be entitled to interest and, in some cases, compensation. The exact amount will depend on the circumstances, including how long the funds were outstanding and whether there has been any financial loss as a result of the delay.
Yes. Premium Bonds remain eligible for prize draws for a period after death (usually up to 12 months), provided the funds have not yet been encashed. Any prizes won during this time should form part of the deceased’s estate and be payable to the beneficiaries.
Potentially, yes. If additional funds are later identified and returned to the estate, this could impact the overall value of the estate for inheritance tax purposes. This may require the personal representatives to revisit earlier tax calculations and, in some cases, submit corrective information to HMRC.
Not necessarily. NS&I has indicated that families do not need to use claims management companies, and many straightforward cases can be handled by executors directly. However, legal advice may be helpful where there are complications—such as missing funds, tax implications, or disputes between beneficiaries.
There is no fixed timeframe. Given the number of potentially affected cases, it may take some time for NS&I to investigate and reconcile all accounts. Executors should be prepared for delays, particularly in more complex cases or where older accounts are involved.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
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