Using Savings Bonds to avoid the cost of probate court

Thursday, October 28th, 2004
Categorized as: Inheriting and bequeathing US Savings Bonds

Once a Savings Bond is purchased, can you go back and list a co-owner? At my death, would this avoid having the Savings Bonds end up in court and go through the cost of probate? I just want to keep it simple and maybe make my two sons equal co-owners.

Tom’s response

Savings Bond registrations can only have two names on them, so you can’t make yourself owner and your sons equal co-owners. However, you can put one son’s name on half your Savings Bonds and the other son’s name on the other half.

If the bond denominations are evenly splittable, the fairest way to do this is to have each bond reissued as two separate bonds – one naming you and the first son, the other naming you and the second son.

You can make your sons either co-owners or beneficiaries. You can do it either when you buy the bond or anytime thereafter. A co-owner can cash a bond anytime; a beneficiary can cash a bond only with the owner’s death certificate.

Both registration types avoid the costs of probate, but there is no way to register a Savings Bond registration that avoids state or federal estate tax, if any should be due. This depends on the size of your estate.

For more information about Savings Bonds and probate court, see my post Savings Bonds, estate planning, living trusts, and avoiding probate.

For more information on how change the registration on your bonds, see my post Adding a co-owner or beneficiary to a Savings Bond registration.

Rate this post (1 to 5 stars):  1 Star2 Stars3 Stars4 Stars5 Stars
(Average rating: 3.67 stars)

FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

No comments yet.

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

Savings Bond Calculator


Savings Bond

Get an answer to your questions from the Treasury's Savings Bonds team.

Click below to ask a question.

Ask the Treasury


Invest online in Savings Bonds or
marketable Treasury securities.

Deal directly with the U.S. Treasury.

More info


Log in