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?
Tom’s response
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.
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Tom Adams
my brother died and left savings bond with his dead wife’s name and himself as beneficiary. How do I cash these in or transfer them to my name?
Patricia – Assuming his wife died first, the bonds are sole-owner bonds belonging to your brother.
Depending on the value of the bonds and his other assets, the bonds will probably have to go through a Probate Court to determine who they now belong to.
You probably need to speak with a lawyer to get this process started unless another family member is taking care of it.
Tom Adams