Sarah Coles, head of personal finance at AJ Bell, said: “NS&I is hoping to bring down the curtain on its notorious bereavement drama, by reuniting the estates of deceased customers with the money it failed to track down – with interest.
“The Government has agreed to waive any inheritance tax that would have been due on the money, or any income tax on the interest.
“Unfortunately, for anyone trying to process the estate of a loved one who had NS&I holdings, the drama continues. Instead of taking two weeks to respond, NS&I is currently taking eight. The service won’t go back to normal until the autumn.
“Anyone who has had to deal with an estate is no stranger to delays. Executors have to stick to strict deadlines, and for estates where inheritance tax is due, money has to be handed over within six months of the end of the month in which the person died.
“It means any delays in the process can be expensive as well as frustrating. The extra six-week wait from NS&I will come as yet another headache for anyone slogging through probate right now.”
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