Changing a Savings Bond's owner
Friday, February 10th, 2006
Categorized as: Savings Bond registration changes
I have given my granddaughter a bond a month since 1988. I am the owner and she is the beneficiary. Now I want to drop my name from those bonds so she may be the sole owner. How is that done?
Tom's response
Because of the way the bonds are registered, there's no legal way for you to get out of paying the income tax on the interest these bonds have earned.
My recommendation would be for you to cash the bonds, hold back enough money to pay the income tax, and then either give your granddaughter the money or buy her new Savings Bonds that are in her name alone.
My book has a lot more details on this kind of transaction, including how to have the ownership changed on the existing bonds and why that causes problems for people.
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How can I cancel a Series EE Bond that I purchased in 11/2008? The person I gave the bond to does not want it.
E Marie - the answer to your question is here.
Tom Adams
IF A BENEFICIARY WANTS TO BE CHANGED HOW CAN WE GO ABOUT THIS?
My uncle had 15 E bonds dated from Jan 56 to Jul 57, he died stating in a will that my step mother would inherit them, she died recently and I found them, she also had a will stating that I would inherit every thing she had, How do I go about cashing theses in.
Robert - What you need to do depends on whether the wills were probated or not. See this post.
Tom Adams