- Don’t do anything. Until the bond matures, it will continue to receive interest. Our office will hold semi-annual interest payments and pay them when the bond is cashed.
- Reissue: Have the bond reissued in the name of the survivor. A coowner or beneficiary may be added to the bond by the new owner.
- Along with FS Form 5396, submit a certified copy of the owner’s death certificate (download or order). Although the bond will not be physically reissued, you will continue to receive semi-annual interest payments. (A death certificate or other legal evidence will not be returned.)
Cash (Redeem) a paper bond with a named survivor
Series EE and I: Take your savings bonds to a financial institution that accepts them and provide proper identification as well as any supporting documentation that may be necessary. It’s a good idea to phone the banking institution ahead of time to find out what kind of identification and documents you’ll need.
Your local bank is not permitted to cash Series HH bonds, but they can assist you in submitting your transaction.
HH Savings Bonds (Cashing Series)
Reissuing a paper bond with a survivor named on it
Paper reissues of Series EE and Series I bonds are no longer available. Instead, TreasuryDirect converts the bonds to electronic bonds. If you are the survivor, you can use SmartExchange to convert your bond.
Series HH: Paper reissues of these bonds are still available. Reissuing or Replacing Series HH Savings Bonds has instructions.
How do you cash a savings bond for a deceased person?
If you are now the owner of the savings bonds or if your parent listed you as the survivor beneficiary on the bonds, take them to a bank or other financial institution. In the presence of a bank official, fill out the redemption form on the back of the bonds and sign it. A driver’s license or other form of identification is required. You must also provide proof of death if you are mentioned as a survivor. This is usually done by a verified copy of the death certificate. The bank will redeem the bonds and pay you the proceeds.
How do I get money out of savings bonds that aren’t in my name?
If you are not identified as the owner or co-owner on the bond, you must produce legal evidence or other documentation to establish you are entitled to cash the bond, regardless of where you cash it. (Legal evidence is not returned.)
It is important to note that savings bonds cannot be transferred. You can’t cash a bond that belongs to someone else or that you bought on an internet auction site. (See Death of a Savings Bond Owner if you inherit a bond through the death of the bond owner.)
Are savings bonds subject to taxation?
Savings bonds are not treated in the same way that other traded instruments like stocks and bonds are. The interest on the bonds is taxable in the estate or on the final tax return of the dead. After the bond’s interest is paid, the beneficiary must pay taxes on it.
What is the procedure for an executor redeeming savings bonds?
Bonds made of paper. To buy a paper savings bond, you must first figure out who owns it. The names of the owner or owners are usually printed on a savings bond. If all of the bond’s owners have died, the bond becomes part of the estate of the person who died last. To legally handle a savings bond, you must prove that you are the rightful owner of the bond or that you have the ability to act on behalf of the bond’s beneficiary, such as if you are the executor or administrator of the owner’s estate.
The Treasury Department has outlined several methods if the savings bond is part of the owner’s estate:
- If the bonds are worth less than $100,000 and the estate was not properly managed through a judicial process, the beneficiary should just mail the bond to the Bureau of Public Debt, together with a completed and notarized FS Form 5336 and verification of the owner’s death.
- If the bonds are worth more than $100,000 and the estate is being administered by a court, the personal representative (also known as the executor or administrator) of the estate can redeem the bonds by mailing evidence of his or her appointment as personal representative, a certified copy of the owner’s death certificate, and FS Form 1455, along with the bond.
- The beneficiary must send the bond, proof of death, a notarized affidavit explaining that the bonds belong to named individuals (for small estates) or a final accounting from the estate (for any other estate) to the Bureau of Public Debt if the bond is discovered long after the owner has died and the owner’s estate has already been administered by a court. If there is more than one person who may be eligible to inherit the bond, the heirs must each sign an FS Form 5394 and agree to the bond distribution.
The savings bond does not become part of the deceased person’s estate if a survivor is named on it. The savings bond, on the other hand, belongs to the survivor, who has the option of doing nothing, redeeming the bond, or having it reissued. The bond will continue to generate interest until it matures if the survivor does nothing. A survivor could potentially cash a paper bond by traveling to a financial institution that accepts savings bonds and providing the necessary identity and paperwork (however, only the Treasury Department can cash HH Series bonds). The survivor can also have the bond reissued only in his or her name. Only electronic reissues of Series EE and I savings bonds are available, while paper reissues of Series HH bonds are still available.
Now is a good time to examine if you own any savings bonds and if they’re titled in such a way that they pass to your beneficiaries without going through probate. An estate planning attorney can help you title your savings bonds in a way that is consistent with the rest of your estate plan.
When someone dies, what happens to their savings bond?
When a savings bond has only one owner, the bond becomes part of the estate when the owner passes away. If the bond is not specifically left to someone in the will, it goes through the will’s residuary clause, or under state law if there is no valid will.
When someone dies, what happens to their bonds?
They can, however, stay in the monthly Premium Bonds draws for up to a year after the client has passed away.
After the 12-month term has passed, the face value of the Premium Bonds, as well as any prizes won during that time, will be reimbursed to the dead customer’s estate.
To retain the Bonds in the draw, the person in charge of the deceased customer’s money should indicate this on the death claims form.
Any Premium Bonds awards won will be paid via prize cheque to the person entitled to the money – the estate’s executor – after the prize draw.
Any unclaimed awards will be held until the death claim is processed, after which they will be distributed.
Following the completion of the death claim, we will send any future prizes earned by check to the individual who is entitled to the money.
We are unable to award these prizes online or to consolidate and pay them at the end of the year.
Is it possible to cash a savings bond that belongs to someone else?
When it comes time to cash in your savings bonds, as long as you have the necessary documentation, the process will be relatively simple. It’s important to keep in mind that savings bonds cannot be sold, exchanged, or given away. The only person who can cash in the bond is the person whose name is on it (with a few exceptions, which we’ll discuss shortly).
First and first, you’ll need the bond (unless it’s an electronic bond, in which case there’s no step at all). The monies are deposited into your bank account once you cash it in via the Treasury Web site). However, make certain that the bond may be cashed: It’s been at least a year since it was published (some bonds only require a six-month retention period).
After 30 years, how much is a $50 EE savings bond worth?
Savings bonds are regarded as one of the most secure investments available. The underlying principle is that the value of a savings bond grows over time, but it’s easy to lose track of how much it’s worth over time.
The TreasuryDirect savings bond calculator, fortunately, makes determining the value of a purchased savings bond a breeze. You’ll need the bond series, face value, serial number, and issuance date to figure out how much your savings bond is worth.
If you bought a $50 Series EE bond in May 2000, for example, you would have paid $25. At maturity, the government committed to repay the face amount plus interest, bringing the total value to $53.08 by May 2020. A $50 bond purchased for $25 30 years ago is now worth $103.68.
Is it possible to transfer a savings bond to another person?
Yes. The owner of EE and I Bonds can transfer them to another person with a TreasuryDirect account; however, you must wait five business days from the purchase date to do so.
A savings bond can be transferred to another TreasuryDirect account in whole or in part. See What is the procedure for transferring savings bonds from one TreasuryDirect account to another?
What happens if I transfer savings bonds to another TreasuryDirect customer? Will the recipient’s purchasing limit be affected?
When you transfer savings bonds to another customer, the value of the transfer is deducted from the yearly purchase limit for each savings bond type for the year in which the transfer happens.
Is it possible to move marketable securities from one TreasuryDirect account to another or to a broker/dealer account?
Yes. Marketable Securities can be transferred in $100 increments. You can send a portion or the entire value of a single investment or a group of securities to a single recipient or financial institution. See What is the procedure for transferring marketable securities from my TreasuryDirect account?
No, you must transfer marketable securities from your TreasuryDirect account to a broker/dealer account in order to sell them.
The securities can be sold by the broker/dealer on your behalf.
Is it possible to transfer marketable securities from a non-TreasuryDirect account to my TreasuryDirect account?
Yes. You can contact your broker to have marketable securities from another account transferred as an Incoming External Transfer to your TreasuryDirect account. Customer Service will handle your request and add issued securities to your Current Holdings. For maturity and interest payments, incoming transfers are issued with your primary bank information as the payment destination (if applicable). For specific instructions, see Learn More About Transfers.
Is it possible to transfer marketable securities from my old TreasuryDirect account to my new TreasuryDirect account?
Yes. Complete a Security Move Request, FS Form 5179, to transfer assets from Legacy Treasury Direct to your TreasuryDirect account. Incoming transfers are deposited into your TreasuryDirect account’s Current Holdings.
What happens if I transfer a marketable security that was initially slated for deposit in my C of I before it matures?
Any purchases you have scheduled utilizing Zero-Percent C of I as the source of funds may be impacted if you elect to transfer a marketable security prior to maturity. If funds are inadequate to cover the purchase request, the purchases may be canceled.
What if the form of registration for transferring marketable securities from an outside broker to my TreasuryDirect account is invalid?
We shall refuse any inbound security transfer request that has an invalid form of registration.
What if the marketable security I want to move in from another outside account is registered with the words “OR,” “AND,” or “With Right of Survivorship”?
Regardless of the method of registration prior to the transfer, a security transferred from an outside account into a TreasuryDirect account will be transferred in the name of the individual account owner in single owner form. The registration can be changed to any allowable registration after the transfer is accomplished.
Is there a penalty for not cashing in savings bonds that have reached maturity?
Your link has finally matured after three decades of waiting. If you wish to cash in your bonds, you must follow specific requirements depending on the type of bond you have (paper or electronic).
- You can cash electronic savings bonds on the TreasuryDirect website, and you’ll get your money in two days.
- Most major financial institutions, such as your local bank, accept paper savings bonds.
If you can’t find your fully matured paper savings bond, you can have it electronically replaced by going to the TreasuryDirect website and filling out the necessary papers.
You’ll need the serial number of the bond, which serves as a unique identity. If this isn’t accessible, you’ll need other information, such as the exact month and year the bond was purchased, the owner’s Social Security number, and the names and addresses of the bond’s owners. Even if you’ve misplaced the bond, it’s possible to find it with a few efforts.
You can keep your bond after it matures, but you will not get any extra interest. On the one hand, because you can’t spend a savings bond without redeeming it, the value of your bonds is considered “secure.” On the other side, if your bond isn’t redeemed, you’ll miss out on additional sources of interest. With current inflation rates, it doesn’t make much sense to hold a bond that pays nothing and is losing money to inflation every day.
Finally, regardless of whether you redeem your bonds or not, you will owe taxes on them when they mature. In the year of maturity, make sure to include all earned and previously unreported interest on your tax return. If you don’t, you may be subject to a tax penalty for underpayment.