Comments on: Savings Bonds, estate planning, living trusts, and avoiding probate http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/ Thu, 18 Mar 2010 07:09:08 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-61800 Mon, 08 Mar 2010 15:41:51 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-61800 Pat - the bonds are yours and do not go through probate. You would benefit from a weekend reading my <a href="http://www.amazon.com/dp/0976064537?tag=alert-20" rel="nofollow">book about Savings Bonds</a> to determine the best time to cash the bonds and other information you - and anyone with a large portfolio of Savings Bonds - needs to have. Tom Adams Pat - the bonds are yours and do not go through probate. You would benefit from a weekend reading my book about Savings Bonds to determine the best time to cash the bonds and other information you - and anyone with a large portfolio of Savings Bonds - needs to have.

Tom Adams

]]> by: Pat http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-61683 Sun, 07 Mar 2010 21:23:31 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-61683 I am the co-owner on EE HH And I bonds, the primary owner is now deceased. Can I cash the bonds with my SS# now or any time in future,as when my tax bracket is lower? From your prior advice, I believe that the bonds do not go into probate for her estate. Is that correct? Note: my father is still alive and the beneficiary named in the will. I am the co-owner on EE HH And I bonds, the primary owner is now deceased. Can I cash the bonds with my SS# now or any time in future,as when my tax bracket is lower? From your prior advice, I believe that the bonds do not go into probate for her estate. Is that correct? Note: my father is still alive and the beneficiary named in the will.

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-56876 Wed, 27 Jan 2010 15:12:19 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-56876 Barbara - If your client wants to leave the bonds in the trust, then you would change the registration to reflect the name of the trust and the new trustee. If there are two, put "and" between their names if both must sign for the trust or "or" if you want to require only one signature. (If the registration says "or" now and one of the two names is your client, I don't see a reason to bother changing the registration unless you're adding a new co-trustee.) Tom Adams Barbara - If your client wants to leave the bonds in the trust, then you would change the registration to reflect the name of the trust and the new trustee. If there are two, put "and" between their names if both must sign for the trust or "or" if you want to require only one signature.

(If the registration says "or" now and one of the two names is your client, I don't see a reason to bother changing the registration unless you're adding a new co-trustee.)

Tom Adams

]]> by: Barbara Watts http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-56792 Tue, 26 Jan 2010 20:29:47 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-56792 Hi Tom, We have a client who owned E bonds with her lifelong friend in a joint trust with her friend. The two women were co-trustees of the joint trust. One of the women has passed away and I'm not sure how to re-register the bonds. Thank you. Hi Tom,

We have a client who owned E bonds with her lifelong friend in a joint trust with her friend. The two women were co-trustees of the joint trust. One of the women has passed away and I'm not sure how to re-register the bonds.
Thank you.

]]> by: Tom Adams http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-38677 Wed, 08 Apr 2009 14:28:24 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-38677 Lois - 1.) The best thing to do after your mother's death is to have the bonds reissued from the name of the trust to the names of the heirs. Then each heir will be responsible for their own taxes when they cash the bonds. If the trust cashes the bonds, the trust - not you personally - is responsible for the taxes. But the <a href="http://www.savings-bond-advisor.com/federal-income-tax-brackets/" rel="nofollow">tax rate for trusts</a> is quite high, so you probably don't want to do that. 2.) Assuming your mother agrees, you can use the trust money for whatever you want, including tuition. However, the Trust can't get the <a href="http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/" rel="nofollow">Savings Bond college education tax deduction</a> because of the way the bonds are registered. Tom Adams Lois - 1.) The best thing to do after your mother's death is to have the bonds reissued from the name of the trust to the names of the heirs. Then each heir will be responsible for their own taxes when they cash the bonds. If the trust cashes the bonds, the trust - not you personally - is responsible for the taxes. But the tax rate for trusts is quite high, so you probably don't want to do that.

2.) Assuming your mother agrees, you can use the trust money for whatever you want, including tuition. However, the Trust can't get the Savings Bond college education tax deduction because of the way the bonds are registered.

Tom Adams

]]> by: Lois http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-38621 Tue, 07 Apr 2009 20:49:26 +0000 http://www.savings-bond-advisor.com/savings-bonds-living-trusts-and-avoiding-probate/#comment-38621 Two Questions about EE bonds and Trusts: My parents were the co-owners of EE bonds. When my father died, my mother made me (the son) a co-trustee on the family trust. We recently changed the bond ownership from my parents names to the Family Trust. 1) My mother would eventually like the bond money, upon her death, to go to her children. My first question concerns the tax event if she dies. Since I am a co-trustee, will I have to pay tax on all the interest, even though the money will be divided among the children? 2) We have also discussed using the bonds for education. Since the bonds are now in the name of the trust, can I, as co-trustee, use the bond for educational tuition? Two Questions about EE bonds and Trusts:

My parents were the co-owners of EE bonds. When my father died, my mother made me (the son) a co-trustee on the family trust. We recently changed the bond ownership from my parents names to the Family Trust.

1) My mother would eventually like the bond money, upon her death, to go to her children. My first question concerns the tax event if she dies. Since I am a co-trustee, will I have to pay tax on all the interest, even though the money will be divided among the children?

2) We have also discussed using the bonds for education. Since the bonds are now in the name of the trust, can I, as co-trustee, use the bond for educational tuition?

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