For 3 years, my wife and I have purchased the max each year ($10K) of Series I US Savings Bonds. They are titled in each of our name. We are thinking of adding each of us as beneficiaries to our spouses holdings.
1) If I pass away, would my wife run afoul by inheriting the bonds since she has already purchased the max?2) Are we better off just changing the title to both of us as joint owners?
Mel
[snip]
Can't answer your registration quesiton but... just pointing out there's *another* five thousand dollar purchase option.
It's little known, but you can request your IRS "refund" (if yo have one coming) to be paid to you in, yes, US "I savings Bonds", and as a super good incentive, you can get ther in PAPER FORM.
THat's the only way to get paper savings bonds these days.
The maximum is $5,000, and this is _in addition_ to the basic ten thousand dollars.
The $10K limit is on how many bonds an individual or entity can buy during a year, not on what you can own. There is no limit to how many you or she can own.
Probably, since then when one of you dies, the other immediately becomes the owner without having to pass through the decedent's estate. If the bonds are in Treasury Direct, you can do it all online.
You can inherit any amount. The amount inherited has no effect on the amount you can buy each year. If you want the bonds to go to your wife upon your death then just register them with her as the POD beneficiary. Ditto for her bonds if she wants them to go to you upon her death. You could also name her as a co-owner rather than as POD. In both instances the bonds are hers upon your death. The difference between the two titles is that a co-owner has the right to sell the bonds. A beneficiary has no ownership interest until the owner dies.
Likewise, I don't know the answer. However, you can get all the details from //thefinancebuff.com
And if you have any questions not answered in the comments, you can ask on the web site.
Thanks for all your responses. Clue, that 2nd link was perfect: it answered myriad questions and had further links telling me how to change registrations. It saved me a call to Direct (and probably 2 hours waiting to talk to a human!)
Mel
I could be wrong, but I don't think beneficiaries have to be probated. I'm thinking there must be a brokerage firm involved and they'll need to be identified if the other person dies.
Good point as to death triggering ownership, whereas, joint ownership might allow either to sell their share at will. Correct me if I'm wrong.
Yes, that's correct. But that has nothing to do with the tax issue, which is the same whether
The rule used to be that a spouse or child inheriting an IRA could stretch the IRS - in other words take it out a bit at a time over their lifetimes, and only pay taxes when the company came out. Now a spouse can still take it out over his or her lifetime, but anyone else inheriting an IRA can stretch it for no longer than five years.
Thanks Stuart.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.