Putting savings bonds into a trust

Friday, January 7th, 2005
Categorized as: Inheriting and bequeathing US Savings BondsSavings Bond registration changes

I’m looking for the form I need to put my savings bonds into a family trust.

Tom’s response

Before rushing off to put your Savings Bonds in a Trust, be sure to read my post on Trusts: Savings Bonds, estate planning, living trusts, and avoiding probate.

If you decide to go ahead, what you’re looking for is Public Debt Form 1851 Request to Reissue United States Savings Bonds to a Personal Trust.

Read the instructions carefully. To avoid paying income tax on your savings bonds’ accumulated interest, you have to certify that under the trust, you will be treated as the owner of the portion of the trust represented by the tax-deferred accumulated interest on the bonds being reissued.

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11 Comments

On January 25th, 2008 Shirley Avery said:

I was wondering if you could tell me where I can get Public Debt Form 1851?

Shirley

On January 28th, 2008 Tom Adams said:

Shirley – there’s a link to the form you’re looking for in the text at the top of the this page. You just have to click on it.

Tom Adams

On February 24th, 2008 eileen murtagh said:

i want to gift my savings bonds to my grandchildren either for their college education or upon my death. do i want to reissue the bonds with their names as a co-owner (or beneficiary) since my husband (original co-owner) is deceased or what would a trust do for us? thanks for your input.

On February 25th, 2008 Tom Adams said:

Eileen – Just get the bonds reissued with your grandchildren as beneficiaries; a trust is a pretty complicated way to do this. There’s more info here on getting the bonds reissued to add a beneficiary.

Tom Adams

On March 25th, 2008 Vincent P. Beilman Jr. said:

Series EE Savings Bonds. My bonds have my father who is deceased as the co-owner. How do I go about removing my father’s name and substituting my wife as the co-owner?

On March 26th, 2008 Tom Adams said:

Vincent – the information you’re looking for is on my page about changing a co-owner who has died.

Tom Adams

On April 21st, 2008 Bill Tieman said:

Can I-Bonds purchased in individual names/SSNs in electronic form (Treasury Direct) be reissued in the name of a Family Trust? The Treasury Direct web site indicates that I-Bonds can only be purchased in individuals names/SSNs, not in the name of a trust at purchase.

On April 22nd, 2008 Tom Adams said:

Bill – Only paper Savings Bonds can be issued in the name of a Trust. At this time electronic bonds on TreasuryDirect can only be issued in the name of individuals who have SSNs. Electronic bonds cannot be reissued as paper bonds, so there’s no way to move the money into a Trust without cashing the electronic bonds and buying new paper bonds (but in that case, beware the annual purchase limits).

Tom Adams

On March 3rd, 2009 Ryan said:

Thank you. This was more helpful than the treasury site.

On August 12th, 2009 Lisa O'Sullivan said:

My mom purchased I bonds in her name with her trust as POD. My sister and I would like to keep the bonds without having to cash them in and purchase another because they were purchased in 2003 and the rate is good. Can we just get them reissued one in my name and one in my sister’s name?

On August 13th, 2009 Tom Adams said:

Lisa – Typically you can get bonds reissued in a new name when the owner dies.

However, having a Trust as the POD is highly unusual – I didn’t know it was even possible.

But if that is the case and the bonds belong to the Trust, the Trust can ask that the bonds be reissued to you and your sister.

However, you should ask if this will be a taxable event to the Trust. Typically this kind of transaction doesn’t create a taxable event, but this situation isn’t typical.

Tom Adams

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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