question about Savings Bonds

Posted by Jane on September 15, 2009, 9:12 pm

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I had posted this on the investment group but it was suggested I post
it here:

I have over 100K in US Savings Bonds. They are in my name and my
husband. My husband recently died. I don't want to cash them because
of the tax ramifications and also because most of the bonds are
getting > 5%. I was told I cannot make any name changes, that to do
that I would have to sell and repurchase.

Can these bonds be put into a trust? I'm not sure of the terminology,
but I mean the kind of trust that protects assets from probate not the
kind that protects them from Medicaid.

Help would be greatly appreciated.

Thanks

Jane

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Posted by Alan on September 17, 2009, 12:46 pm

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Jane wrote:

> I had posted this on the investment group but it was suggested I post

> it here:

> I have over 100K in US Savings Bonds. They are in my name and my

> husband. My husband recently died. I don't want to cash them because

> of the tax ramifications and also because most of the bonds are

> getting > 5%. I was told I cannot make any name changes, that to do

> that I would have to sell and repurchase.

> Can these bonds be put into a trust? I'm not sure of the terminology,

> but I mean the kind of trust that protects assets from probate not the

> kind that protects them from Medicaid.

> Help would be greatly appreciated.

> Thanks

> Jane

Whomever gave you that information is incorrect. Here is the
answer to your question direct from the US Treasury:

If a Surviving Person Is Named on a Bond

If you are named in a bond's registration with someone else who
is now deceased, you can:

* Do nothing with the bond;
* Redeem the bond by presenting it with adequate
identification at a financial institution that pays savings
bonds; or,
* Get the bond reissued (re-registered) in your name alone
or with some other living person as long as the bond is still
earning interest and is not approaching final maturity.

To have a savings bond reissued in this situation, you'll need to
send a certified copy of the deceased person's death certificate
with the bonds and a reissue request PD F 4000 (see link below)
to a Treasury Retail Securities Site (see link below to find a site).

http://www.treasurydirect.gov/forms/sav4000.pdf
http://www.treasurydirect.gov/FC/FCGateway?site=indiv&app=sav

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>