Comments on: Cash those stinker bonds

by: Tom Adams

Tue, 02 Mar 2010 16:11:11 +0000

Carrie - Giving a Savings Bond with your name on it is meaningless - the charity can't cash the bond. Only the person named on the bond can cash it!

If the donor dies, then the probate court will distribute the value of the bond among the owner's heirs and the charity will get nothing. Possession of the bond is legally meaningless.

If you want to help out the charity and get a tax deduction, cash the bond, give the money to the charity, and take a charitable deduction on your tax return.

Meanwhile, holding a bond that isn't paying interest is a free loan to the government. The government is the charity you're supporting. If you followed your idea here, the most likely outcome is that the bond would never be cashed and in your eagerness to avoid taxes you'll give 100% of the bond's value to the government.

Tom Adams

by: Carrie

Mon, 01 Mar 2010 19:06:53 +0000

If a bond has been held beyond maturity and is no longer earning interest, what happens if it is given as a gift to a charity, and then the charity holds the bond until the donor dies? Are all taxes and penalties avoided and the charity entitled to the maturity value? Does the estate get a charitable tax deduction, too?

by: Tom Adams

Tue, 01 Jul 2008 21:02:34 +0000

All - please ask questions about lost bonds on the page about lost bonds.

Edith - Normally you will hear from them after three weeks.

Tom Adams

by: Edith

Tue, 01 Jul 2008 11:13:39 +0000

How long does it normally take to replace lost or stolen bonds?

by: Tom Adams

Tue, 29 Apr 2008 13:52:24 +0000

Hi Janice - I would wait until mid-May at least before worrying about this. If you haven't heard back by then, let me know.

Tom Adams

by: Janice Hearns

Mon, 28 Apr 2008 22:22:05 +0000

I requested information on lost bonds which I purchased for my nephew in 1974. I sent all the details in my request. Which I sent request at Appx. April 5,2008. What should I do now.?