Comments on: Should the elderly redeem their bonds before passing them to heirs? http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/ Wed, 08 Feb 2012 16:08:38 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63382 Fri, 19 Mar 2010 14:22:47 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63382 J.J. - You are asking whether Savings Bonds have a <i>stepped-up basis</i>. The answer is no. Stepped-up basis applies to capital gains. Savings Bonds don't have capital gains, they just earn tax-deferred interest. The beneficiary will be required to pay income tax on all the interest the bonds have ever earned. Tom Adams J.J. - You are asking whether Savings Bonds have a stepped-up basis. The answer is no. Stepped-up basis applies to capital gains. Savings Bonds don't have capital gains, they just earn tax-deferred interest. The beneficiary will be required to pay income tax on all the interest the bonds have ever earned.

Tom Adams

]]> by: J.J. WALD http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63366 Thu, 18 Mar 2010 18:45:17 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63366 EE-BONDS IN A TRUST PAYABLE TO A BENEFICIARY; INCOME TAXWISE, DOES THE I.R.S. VALUE THEM (THE INTEREST) AS OF THE DATE OF DEATH OR RETROACTIVE TO THE PURCHASE DATE? UPON THE BENEFICIARY RECEIVING/CASHING THE BONDS? EE-BONDS IN A TRUST PAYABLE TO A BENEFICIARY; INCOME TAXWISE, DOES THE I.R.S. VALUE THEM (THE INTEREST) AS OF THE DATE OF DEATH OR RETROACTIVE TO THE PURCHASE DATE? UPON THE BENEFICIARY RECEIVING/CASHING THE BONDS?

]]> by: Tom Adams http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63334 Wed, 17 Mar 2010 15:29:50 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63334 Bob - you will need death certificates for both your wife and the uncle. The bonds belong to the heirs of whoever died last. If that's your wife, you can either cash the bond or have it reissued to you. After that, you can reissue it to your grandchild, but that will be a taxable event for you and I do not recommend it. The form you need to use depends on whether your wife's will has handled by a probate court or not and, if so, whether the case is still open or has been closed. <a href="http://www.amazon.com/dp/0976064537?tag=alert-20" rel="nofollow">My book</a> has the details on the forms and additional paperwork you need to send in. Tom Adams Bob - you will need death certificates for both your wife and the uncle. The bonds belong to the heirs of whoever died last. If that's your wife, you can either cash the bond or have it reissued to you.

After that, you can reissue it to your grandchild, but that will be a taxable event for you and I do not recommend it.

The form you need to use depends on whether your wife's will has handled by a probate court or not and, if so, whether the case is still open or has been closed. My book has the details on the forms and additional paperwork you need to send in.

Tom Adams

]]> by: Bob Koenig http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63322 Wed, 17 Mar 2010 00:42:10 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63322 I have several EE 1990 $1000 bonds. They are owned by my wife (or) an uncle, both are deceased. Can I assume possession, having her death certificate, and then have a grandchild as a co-owner? What kind of form will I need? What kind of documentation? My bank does not get involved with this. I have several EE 1990 $1000 bonds. They are owned by my wife (or) an uncle, both are deceased. Can I assume possession, having her death certificate, and then have a grandchild as a co-owner? What kind of form will I need? What kind of documentation? My bank does not get involved with this.

]]> by: Tom Adams http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63314 Tue, 16 Mar 2010 20:49:08 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63314 <b>Mike</b> - I'm not sure what you mean by maturity, but it's not the usual meaning. I bonds pay interest for 30 years. If these bonds were issued in 2001 or before they are about the best place you can have money invested today and pay <i>much</i> higher rates than your savings account. <b>Joe</b> - The information you're looking for is <a href="http://www.savings-bond-advisor.com/how-to-update-savings-bond-registrations/" rel="nofollow">here</a>. <b>Jean</b> - Although what you want to do is allowed, I wouldn't recommend it. There's more info <a href="http://www.savings-bond-advisor.com/cashing-savings-bonds-internationally/" rel="nofollow">here</a>. Tom Adams Mike - I'm not sure what you mean by maturity, but it's not the usual meaning. I bonds pay interest for 30 years. If these bonds were issued in 2001 or before they are about the best place you can have money invested today and pay much higher rates than your savings account.

Joe - The information you're looking for is here.

Jean - Although what you want to do is allowed, I wouldn't recommend it. There's more info here.

Tom Adams

]]> by: Jean http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63292 Tue, 16 Mar 2010 17:25:48 +0000 http://www.savings-bond-advisor.com/bequeathing-us-savings-bonds/#comment-63292 I have a friend in Mexico who had a baby in Jan. 2010. I want to buy a US Savings Bond for the baby. Should I make the baby the co-owner or the beneficiary? Will she have a hard time cashing the bond since she's not a US citizen? Jean I have a friend in Mexico who had a baby in Jan. 2010. I want to buy a US Savings Bond for the baby. Should I make the baby the co-owner or the beneficiary? Will she have a hard time cashing the bond since she's not a US citizen?
Jean

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