Comments on: How to redeem or update a Savings Bond registration when you are co-owner or beneficiary of an inherited bond

by: Tom Adams

Mon, 25 Jan 2010 16:06:32 +0000

Hi Lynn - Yes, it literally means they will split the bonds between the two of you, assuming that a split is possible. All HH bond denominations can be split into two except the $500 bond, which can't be split (because there's no $250 bond).

Splitting them in two, when possible, is the fairest way to handle the distribution.

The deferred interest will continue to be deferred until you cash the bonds.

Tom Adams

by: Lynn Wong

Fri, 22 Jan 2010 23:23:29 +0000

Hello, Tom. I am executrix of my father's estate. Just received my copy of your book and read the section on bond inheritance issues but I have further questions. Dad had HH bonds issued between Nov. 1996 and Oct. 2001, with face value total $58K and deferred interest value total around $49K. I know they reach final maturity in 20 years. I realize HH bonds are no longer sold, but as executrix, and since these bonds of Dad's have not reached final maturity, can I have them reissued? What I'd like to do is split them in equal shares between my brother and me. I have looked at the PD F Forms 4000 and 1455, and if I understand the forms, then I can list the bonds and give instructions that each bond be split 50-50 between my brother and me. Does this literally mean that for each of Dad's HH bonds, the result is two paper bonds, each with half the face value and half the deferred interest (one for bro, one for me)? How does that work, since HH bonds were only issued in several denominations ($500, $1,000, $5,000, and $10,000)? Also, does the deferred interest listed on Dad's HH bonds continue to be deferred on the reissued bonds until my brother and I redeem them?

Thanks very much for your help.

by: Tom Adams

Mon, 04 Jan 2010 16:31:17 +0000

James - When your step-father died, the bonds legally became sole-owner bonds in your mother's name. As of her death, the bonds became part of her estate. You will need the court paperwork that assigns her estate to you to change them into your name.

My book goes into this in great detail and answers a number of questions you haven't thought to ask yet.

Tom Adams

by: James Taylor

Sun, 03 Jan 2010 06:44:10 +0000

my mom passed on dec. 2, 2009. I have found 20 EE bonds she bought over several years. SHE is listed on them but it also says or my step dad. He passed in nov. 1996. His will was taken care of at that time .I am my moms only heir and also the executor of her will. What do i have to do to change them to my name ? Please help if you can. Thanke you, James Taylor

by: Tom Adams

Wed, 07 Oct 2009 13:54:45 +0000

Pat - Indeed - this is complicated.

Ellen's heirs can cash the bond without an attorney. Since the estate is closed and the executors have been released, the living executor, Ellen's attorney, doesn't need to be involved.

The heirs will need a copy of Public Debt Form 5394, a copy of Ellen's death certificate, evidence of her maiden name (usually a marriage certificate; alternatively the birth certificates of Ellen's children would typically include her maiden name), and a copy of the final paperwork from the probate court that names Ellen's heirs.

All of the heirs will need to have their signatures certified on the form at a bank, so consider turning all the leg work over to them.

Tom Adams

by: Pat

Tue, 06 Oct 2009 15:16:28 +0000

Here's a new one for you! Ellen named my husband and her attorney as executors of her estate. When she died, they completed all of the paperwork to close the estate. Then my husband died and I am in the process of closing his estate. I recently found a savings bond that belonged to Ellen and actually was taken out in her MAIDEN name, it's that old and forgotten. Looks like it's worth about $500 now. Do I have to ask the lawyer to reopen the estate? How do we reconcile the maiden name with the married name? Is there a way to do this directly without also incurring attorney fees? Also there's the successor path of going through my husband's estate to me… Messy, isn't it? Thanks for any suggestions.