Tuesday, March 22nd, 2005
Categorized as: Inheriting and bequeathing US Savings Bonds
Can the Executor of an estate choose to cash in and pay taxes on a partial amount of a bond inventory?
Yes, you can cash have the estate redeem some and pay the tax on those and let the rest pass on to co-owners or beneficiaries. There is also a way to pay all the taxes on the decedent’s final tax return and pass the uncashed bonds on to the heirs.
The process, forms, and best strategies for an Executor to use to save the family money are complex. If the estate has more than $10,000 in Savings Bonds, it will pay you to spend a weekend reading my book. The chapter on issues with inherited Savings Bonds will show you the most efficient and least expensive path through the maze.