Comments on: Redeeming Series H/HH Savings Bonds

by: Tom Adams

Wed, 03 Feb 2010 14:44:03 +0000

Eddy - Find the serial numbers on the copies she has and have her follow the process here.

Tom Adams

by: Eddy Grove

Tue, 02 Feb 2010 16:02:43 +0000

My mother has copies of 4 HH series bonds that bear my late stepfather's name as well as her name. She would like to find out if they were cashed in at the time of his death (5+ years ago). She doesn't remember them being cashed in but with everything else that was going on at that time she's not sure. What would be my first step in helping her with this?

by: Tom Adams

Wed, 27 Jan 2010 15:08:14 +0000

Jeannine - You don't need to send in either the death certificate or a copy of the trust agreement, but do send a contact phone number so that if the direct deposit won't work (I'm not sure of their rules in this case), they can work out an alternative with you.

Tom Adams

by: Jeannine

Tue, 26 Jan 2010 17:00:18 +0000

Grandma passed away, leaving 4 $1000 bonds in the trust name that we wish to redeem. Aunt Pat is now the trustee, with appropriate trust addendum to change the trustee from Grandma to Pat. There is no longer a bank account with the trust's name, these were discovered after things were closed. Will the Treasury auto-deposit into a personal bank account(Aunt Pat's)?

Besides sending in the Direct Deposit Sign-up Form, and a copy of the Trust Addendum naming Aunt Pat, do we need to send in a copy of the Death Certificate and a copy of the Trust as well?

by: Tom Adams

Thu, 21 Jan 2010 15:47:08 +0000

Marlene - If your mother is still able to go to a bank and get her signature certified and if her tax rate is lower than the tax rate of her heirs, then you should redeem the bonds. The income will appear on her 2010 tax return - the one filed next year. You should hold back what she'll need to pay the tax and reinvest the rest. These bonds only earn 1.5% anyhow.

Although technically you could have the estate redeem the bonds, typically the bonds are reissued to the heirs, who then cash them and pay the tax. Getting this taken care of now, if possible, is the better choice.

Tom Adams

by: Marlene Creaghten

Thu, 21 Jan 2010 02:37:51 +0000

My mother, who is ill and dying, owns $55,000 in HH bonds, issued in 2004. There is approximately $43,000 in deferred interest. My question is-should we cash in the bonds now, prior to her death (assuming she would have to pay tax on the deferred interest) or is it more prudent for tax purposes to delay cashing them in till after her passing? And am I correct in assuming that the estate wold pay the tax on the deferred interest? Thank you.