Comments on: Should we add our children's names to our Savings Bonds?

by: Tom Adams

Thu, 10 Dec 2009 18:03:45 +0000

Andrew - the answer to each of your questions is yes.

Tom Adams

by: Andrew Camoroda

Wed, 09 Dec 2009 22:42:38 +0000

I have several I and EE bonds in my name with my wife as co-owner. If I died first, would my wife be able to add my daughter's name as co-owner without tax consequences and will the bonds go to my daughter upon my wife's death recognizing that my daughter will have to pay taxes on the interest earned when she cashes them in.

by: Tom Adams

Tue, 22 Sep 2009 15:38:41 +0000

Carol - I have to assume you're asking about income tax on your Social Security Income, not the income itself, because you get the same amount of Social Security regardless of how much Savings Bond income you have.

Yes, if you cash in enough Savings Bonds, the interest you earn could magnify your income to an extent that would cause you to have to pay income tax on some of your Social Security Income.

The actual limit depends on a number of things - the amount of Savings Bond interest, your filing status, and your other income. It's a bit complicated to go into here, but IRS Publication 915 explains it all in great detail.

Tom Adams

by: Carol Cannizzo

Tue, 22 Sep 2009 15:16:26 +0000

Is there a limit to cashing bonds not TO AFFECT SOCIAL SECURITY INCOME?

by: Tom Adams

Fri, 17 Jul 2009 16:18:32 +0000

Janice - This problem has to do with your employer's payroll office putting the wrong name on the forms.

You cannot sign the bonds over to your daughter, however, you can have the bonds reissued in your daughter's name because of your payroll office's processing error.

Begin by contacting your employer's payroll office to make sure new bonds are issued in your daughter's name. Then take up the issue of getting the bonds with the wrong name reissued with the payroll office. If the office insists it can't do that, use the link here (above, on the right) to contact the Treasury and find out the process it needs to follow.

Tom Adams

by: janice

Fri, 17 Jul 2009 15:55:36 +0000

Tom,

I have bonds that i purchase and deducted from my pay check monthly. I have asked several times that they put the bonds in my daughter's name only. They did that for a few months, now they are in my name only that should have been in my daughter's name only. Can my daughter cash them if I sign them over to her, or do i have to do a living will and then she will have to wait till I die?