question about Savings Bonds

Sep 16, 2009 1 Replies
J

I had posted this on the investment group but it was suggested I post it here:



I have over 100K in US Savings Bonds. They are in my name and my husband. My husband recently died. I don't want to cash them because of the tax ramifications and also because most of the bonds are getting > 5%. I was told I cannot make any name changes, that to do that I would have to sell and repurchase.



Can these bonds be put into a trust? I'm not sure of the terminology, but I mean the kind of trust that protects assets from probate not the kind that protects them from Medicaid.



Help would be greatly appreciated.



Thanks



Jane


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A

Whomever gave you that information is incorrect. Here is the answer to your question direct from the US Treasury:

If a Surviving Person Is Named on a Bond

If you are named in a bond's registration with someone else who is now deceased, you can:

  • Do nothing with the bond; * Redeem the bond by presenting it with adequate identification at a financial institution that pays savings bonds; or, * Get the bond reissued (re-registered) in your name alone or with some other living person as long as the bond is still earning interest and is not approaching final maturity.

To have a savings bond reissued in this situation, you'll need to send a certified copy of the deceased person's death certificate with the bonds and a reissue request PD F 4000 (see link below) to a Treasury Retail Securities Site (see link below to find a site).

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