Comments on: Tax-free Savings Bond interest income using gifts to charities http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/ Wed, 08 Feb 2012 17:57:06 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63383 Fri, 19 Mar 2010 14:23:39 +0000 http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63383 Curtis - You should cash the bonds, hold back what you need for taxes, and spend the rest on your grandchild's education. If you're asking whether there's a way to avoid paying the income tax in this situation, the answer is no, there's not. Tom Adams Curtis - You should cash the bonds, hold back what you need for taxes, and spend the rest on your grandchild's education.

If you're asking whether there's a way to avoid paying the income tax in this situation, the answer is no, there's not.

Tom Adams

]]> by: curtis little http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63369 Fri, 19 Mar 2010 00:11:00 +0000 http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63369 I have approx $100,000 in EE bonds. Is there any legal way that I can use them to off set my grand- sons college education??? I have approx $100,000 in EE bonds. Is there any
legal way that I can use them to off set my grand-
sons college education???

]]> by: Tom Adams http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63360 Thu, 18 Mar 2010 15:49:19 +0000 http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-63360 I just found this article on <a href="http://www.pgdc.com/pgdc/article/1999/07/transferring-u-s-savings-bonds-charities" rel="nofollow">Transferring U.S. Savings Bonds to Charities</a>. It discusses how an estate can make the transfer and avoid both income and estate taxes, but <i>there has to be an instruction in your will to do so</i>. Tom Adams I just found this article on Transferring U.S. Savings Bonds to Charities. It discusses how an estate can make the transfer and avoid both income and estate taxes, but there has to be an instruction in your will to do so.

Tom Adams

]]> by: Tom Adams http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-60786 Tue, 02 Mar 2010 16:16:53 +0000 http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-60786 Carrie - the bonds can't be reissued to the charity so the charity can't cash the bonds. In the situation you describe, the estate would have to cash the bond, pay the tax, and give what's left to the charity. Tax rates for estates are much higher than tax rates for individuals, so it makes far more sense to take the charitable deduction while the individual is still alive. Tom Adams Carrie - the bonds can't be reissued to the charity so the charity can't cash the bonds.

In the situation you describe, the estate would have to cash the bond, pay the tax, and give what's left to the charity.

Tax rates for estates are much higher than tax rates for individuals, so it makes far more sense to take the charitable deduction while the individual is still alive.

Tom Adams

]]> by: Carrie http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-60558 Mon, 01 Mar 2010 19:21:05 +0000 http://www.savings-bond-advisor.com/tax-free-redemptions-using-gifts-to-charities/#comment-60558 What happens when a donor with matured savings bonds names a charity to receive them under his or her will? Whe the donor dies and the charity takes possession of the bonds, is the charity obligated to pay the tax on the interest that was earned when the bonds matured and were still in the hands of the donor? Is there any penalty the charity must pay on behalf of the donor? Can the estate take a charitable tax deduction for the maturity value of the bonds? What happens when a donor with matured savings bonds names a charity to receive them under his or her will? Whe the donor dies and the charity takes possession of the bonds, is the charity obligated to pay the tax on the interest that was earned when the bonds matured and were still in the hands of the donor? Is there any penalty the charity must pay on behalf of the donor? Can the estate take a charitable tax deduction for the maturity value of the bonds?

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