Bonds and prizes

The will leaves a specific gift of the premium bonds to the grandchildren. The premium bonds have won prizes after the date of death. Do the prizes become part of the residuary estate or are they added to the specific gift to the grandchildren. The will does not state either way and does not mention prizes.
shazad butt
rudlings wakelam

As a general rule, where the beneficiaries’ entitlement is immediate, a specific gift will carry the right to any income / returns accruing between the date of death and the vesting of the property in the beneficiaries. When the PRs assent the property to the beneficiaries the assent will operate retrospectively to give the beneficiaries the right to any income / returns, in this case the prizes. Contingent interests will likewise carry the intermediate income (unless the Will says otherwise) and this is added to capital and devolves with it.

Stuart Adams
Mishcon de Reya


Is the specific gift of the premium bonds, or of the proceeds of the

If the gift is of the bonds themselves, then any prize arising from a
draw after the date of death will form a part of the legacy, as is the
case with a post death dividend or appreciation on a specifically gifted

However, if the gift is of the proceeds of the bonds, I am inclined to
believe it will include only the value of redemption of the bonds, with
any prizes falling into residue. However, I’m not sure that this point
has been considered by the courts, so there may be no definitive

Paul Saunders

Thank you! the will simply states ‘I give the money in my premium bonds to xxxx’. So from this I would say the lease refers to the proceeds of the bond only…. Not the actual bond or any prizes?
shazad butt
rudlings wakelam