Comments on: Should the heirs or the estate pay the tax? http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/ Tue, 16 Mar 2010 18:37:29 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19307 Thu, 17 Apr 2008 17:16:03 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19307 Mark - looking at it another way - when you pay estate taxes on Savings Bonds, part of the value of the Savings Bonds is unpaid income taxes - so you're paying estate tax on money you'll never get - you'll pay it in taxes. So there is a deduction for the person who cashes the bonds and owes the income tax; but sometimes it's better to handle this in other ways. Tom Adams Mark - looking at it another way - when you pay estate taxes on Savings Bonds, part of the value of the Savings Bonds is unpaid income taxes - so you're paying estate tax on money you'll never get - you'll pay it in taxes. So there is a deduction for the person who cashes the bonds and owes the income tax; but sometimes it's better to handle this in other ways.

Tom Adams

]]> by: Mark http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19304 Thu, 17 Apr 2008 17:01:37 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-19304 Don't forget if the bond are included in the estate and subject to estate tax, then there is miscelleanous itemized deduction NOT subject to 2% Adjusted Gross Income (AGI) limit to lessen the effect of the income taxes due when the bonds are redeemed. Don't forget if the bond are included in the estate and subject to estate tax, then there is miscelleanous itemized deduction NOT subject to 2% Adjusted Gross Income (AGI) limit to lessen the effect of the income taxes due when the bonds are redeemed.

]]> by: Tom Adams http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-17714 Thu, 13 Mar 2008 13:58:32 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-17714 Hi Eleanor - yes, it would greatly simplify matters if you were a co-owner or even a beneficiary of the bonds. Here's the info your mother needs to make you a <a href="http://www.savings-bond-advisor.com/adding-a-co-owner-or-beneficary-to-a-savings-bond-registration/" rel="nofollow">co-owner or beneficiary on her Savings Bonds</a>. Tom Adams Hi Eleanor - yes, it would greatly simplify matters if you were a co-owner or even a beneficiary of the bonds. Here's the info your mother needs to make you a co-owner or beneficiary on her Savings Bonds.

Tom Adams

]]> by: Eleanor Bachofen http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-17712 Thu, 13 Mar 2008 13:16:40 +0000 http://www.savings-bond-advisor.com/should-the-heirs-or-the-estate-pay-the-tax/#comment-17712 My mother has a large amount of US Savings bonds in only her name. I am her only child and beneficiary. We cash some every year to supplement her social security. I want to simplify matters in the event of her death and spread out tax liability on deferred interest over several years. Should my name be on the bonds as a co-owner or as POD beneficiary? My mother has a large amount of US Savings bonds in only her name. I am her only child and beneficiary. We cash some every year to supplement her social security.

I want to simplify matters in the event of her death and spread out tax liability on deferred interest over several years.

Should my name be on the bonds as a co-owner or as POD beneficiary?

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