'This a great and increasingly rare gift to leave someone'
Mike Croxford, Which? money expert, says…They can be passed on, and they’ll also remain index-linked and tax-free.
To jog readers’ memories, index-linked NS&I certificates offer a tax-free return currently at a rate of 0.01% above the rate of the consumer price index (CPI).
The fact that returns are slightly above inflation makes them an attractive product, but they’re no longer on sale.
On death, they become part of the estate and continue to accrue index-linked interest, and they remain free of income tax. Personal representatives can cash them in, or they can be transferred to your beneficiaries.
Note that NS&I's Premium Bonds cannot be passed on: instead they must be cashed out by the executor, or left for another 12 months.
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source https://www.which.co.uk/news/article/can-i-pass-on-my-nsi-bonds-when-i-die-aXY0X6b8BpqC