Comments on: What is POD? What rights does the "mail to" registrant have? http://www.savings-bond-advisor.com/savings-bond-registration-questions/ Mon, 15 Mar 2010 10:19:26 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-60285 Sat, 27 Feb 2010 16:31:39 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-60285 Victoria - Assuming the bond names your father first, then POD, then your name....your father is the owner and you are the beneficiary. You have no rights to cash or change the bond while your father is still alive. The "gift" is meaningless unless he has passed. Tom Adams Victoria - Assuming the bond names your father first, then POD, then your name….your father is the owner and you are the beneficiary. You have no rights to cash or change the bond while your father is still alive. The "gift" is meaningless unless he has passed.

Tom Adams

]]> by: Victoria http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-60123 Fri, 26 Feb 2010 19:13:34 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-60123 I have an EE savings bond but it has my biological father's name on the bond. However, we no longer speak to each other and the bond itself was a gift to me. My name is under the POD but I was wondering if I'd still be able to cash it in even though the POD is the only spot my name is printed. I have an EE savings bond but it has my biological father's name on the bond. However, we no longer speak to each other and the bond itself was a gift to me. My name is under the POD but I was wondering if I'd still be able to cash it in even though the POD is the only spot my name is printed.

]]> by: jcompton http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57138 Tue, 02 Feb 2010 20:11:56 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57138 Ahah! That makes sense and is consistent with their other practices. Thank you for clarifying. Ahah! That makes sense and is consistent with their other practices. Thank you for clarifying.

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57124 Tue, 02 Feb 2010 15:18:10 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57124 JCompton - You are misreading this. The POD is taxed only for changes after the owner dies. That would make the POD a <i>surviving beneficiary</i>. In this case <i>surviving</i> means the POD is alive but the owner isn't. If the owner is alive he or she can change the POD with no tax consequences to anyone. Tom Adams JCompton - You are misreading this. The POD is taxed only for changes after the owner dies. That would make the POD a surviving beneficiary. In this case surviving means the POD is alive but the owner isn't.

If the owner is alive he or she can change the POD with no tax consequences to anyone.

Tom Adams

]]> by: jcompton http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57103 Tue, 02 Feb 2010 04:03:50 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-57103 I am looking into the process of changing POD only (no change to actual ownership) on some E/EE bonds. Am I reading the Treasury Direct article "Series EE/E Savings Bonds Tax Considerations" correctly? It seems to be saying that if you remove a POD, the POD gets hit with a 1099 for the accumulated interest. Although I understand the rationale for dunning people who are abandoning *ownership*, a POD might well never have known they were even eligible to receive the bond in the first place. In effect, they would be getting a 1099 because of a transaction they were powerless to prevent. Am I missing something? The relevant portion of the site is quoted below. They use the term "surviving beneficiary", which I presume means "a POD who is still alive." <i> "In some cases, when you have your savings bonds reissued, the transaction will be considered a reportable event for federal income tax purposes. These events include: * The name of a surviving beneficiary, or other person entitled to ownership doesn't appear on the reissued bond as owner or principal co-owner. . . . For taxable reissues, the person giving up ownership of the bonds will be sent an IRS Form 1099-INT shortly after the end of the tax year. This form will show the interest earned to the date of the reissue transaction. If the form shows interest earned and you have deferred reporting interest, you report interest earned on those bonds as income on your taxes for the year the reissue occurs." </i> I am looking into the process of changing POD only (no change to actual ownership) on some E/EE bonds.

Am I reading the Treasury Direct article "Series EE/E Savings Bonds Tax Considerations" correctly? It seems to be saying that if you remove a POD, the POD gets hit with a 1099 for the accumulated interest. Although I understand the rationale for dunning people who are abandoning *ownership*, a POD might well never have known they were even eligible to receive the bond in the first place. In effect, they would be getting a 1099 because of a transaction they were powerless to prevent.

Am I missing something? The relevant portion of the site is quoted below. They use the term "surviving beneficiary", which I presume means "a POD who is still alive."


"In some cases, when you have your savings bonds reissued, the transaction will be considered a reportable event for federal income tax purposes.

These events include:

* The name of a surviving beneficiary, or other person entitled to ownership doesn't appear on the reissued bond as owner or principal co-owner.
.
.
.
For taxable reissues, the person giving up ownership of the bonds will be sent an IRS Form 1099-INT shortly after the end of the tax year. This form will show the interest earned to the date of the reissue transaction. If the form shows interest earned and you have deferred reporting interest, you report interest earned on those bonds as income on your taxes for the year the reissue occurs."

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-54608 Mon, 04 Jan 2010 16:16:09 +0000 http://www.savings-bond-advisor.com/savings-bond-registration-questions/#comment-54608 Traci - You will need your son's death certificate to cash the bonds. While he's living they belong to him, not to you. Tom Adams Traci - You will need your son's death certificate to cash the bonds. While he's living they belong to him, not to you.

Tom Adams

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