Changing the registration on inherited sole-owner US Savings Bonds
Friday, February 3rd, 2006
Categorized as: Inheriting and bequeathing US Savings Bonds • Savings Bond registration changes
I am the beneficiary of my brother’s estate. He owned Series E Savings Bonds that were registered with him as sole owner and no beneficiary. Can these bonds be registered in my name, thus escaping any taxation until I redeem the bonds?
If the bonds are still paying interest you can have the registration changed. The tax will be due when you cash them or when the bonds stop paying interest, whichever comes first.
All E bonds have already stopped paying interest except for those issued between 1976 and the final E bond issue in 1980.
These bonds pay interest for 30 years. For example, a series E bond issued in February 1976 stops paying interest this month, Febuary 2006.
The form to use for changing the registration to your name depends on whether your brother’s estate is being handled by a court and other factors that are too complex to go into here. My book has all the details you need to figure out what forms to use and how to get the lowest tax rate on this transfer.