Can our executors cash in our Prize Bonds?

PERSONAL FINANCE:Your queries answered

Q

After our deaths (my wife and I), will our executors have any problems cashing in our Prize Bonds, or doing anything else that they may care to do with them? We have “mirror” wills drawn up and lodged with a solicitor. Our son and daughter are our inheritors and our executors. Since Prize Bonds are by far our main savings and given the parlous state of our Government, are we at risk in the event of a crash/IMF etc?

How could we enquire about investing in the “other” bonds quoted on the money markets?

- Mr BD, Dublin

A

Executors are well-used to dealing with a whole series of financial instruments, including bank accounts, equity investments and Prize Bonds. There will be no complication in dealing with them. The names are simply changed during the process of executing the will.

In that regard, there is one thing I would suggest: while almost anyone is entitled to be an executor, it is a legal document and it is no harm having someone with a legal background involved. Otherwise, they may have to hire a solicitor themselves anyway, which would involve three people rather than two in the process. Of course, one of your children may well operate in the legal area themselves.

On the question of security, Prize Bonds are effectively a loan to the State. You are entitled to the money back on demand. The Prize Bond company, which is part of An Post, tells me that Prize Bonds are covered by the same absolute guarantee which applies to other An Post products – such as savings certificates and savings bonds.

The Prize Bond people keep reminding me that there are numerous prizes – some quite valuable – awaiting to be claimed by owners who have moved address or moved bonds into new names. People in such situations should update their details with the Prize Bond office. They can also check online at prizebonds.ie and click on “Bond Tracker” to see if their bond number has won a prize.

Finally, those other bonds – Government bonds, which you see quoted a lot in the newspapers these days, or even corporate bonds – are generally available only to large investors. Ordinary retail investors are more likely to access such products through unitised bonds funds.

Which price for Irish gilts is correct?

Q

I am puzzled that the radio has in recent days given yields for Irish gilts that have been consistently higher than those shown on the Irish Times’Government Stock Prices web page. The prices and yields to maturity show little movement in the day.

- Mr KO’D, Dublin

A

I cannot answer for the prices given out in radio reports. What I can say is that the price and yield for Irish government stocks (gilts) in our markets page is supplied on a daily basis by NCB stockbrokers.

Separately, we also carry a table for 10-year bond spreads. This comes to us from Bloomberg and is updated every day after the market closes. Where there is a difference in the yield for 10-year Irish bonds in this table and the Government stocks table, the Bloomberg table can be taken as more up-to-date.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@irishtimes.com This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.