- Is it necessary to get my signature certified if I cash my bonds by mail using FS Form 1522?
- What should I do if I lose, steal, or destroy my paper savings bond?
- Is it necessary to repair a mistake, an erroneous address, or a wrong Social Security number on my paper EE bond?
- As a gift, I’d like to purchase a savings bond. What happens if I don’t have access to the owner’s Social Security number?
- I observed savings bonds were being auctioned on auction sites like eBayTM, but I assumed they were non-transferable. What is the mechanism behind this?
It is debatable. You can send us a copy of your driver’s license, passport, state ID, or military ID instead if the current redemption value of your bonds is $1,000 or less.
Fill out and sign FS Form 1048 (download or order) according to the directions on the form, then mail it to the address on the form.
- Serial number of Bond If you don’t have the bond serial number, please provide the following information:
If we can prove that a person who is entitled to cash the bonds hasn’t done so, we can replace them. Replacing or Reissuing a Lost or Destroyed Paper EE Bond is described in detail here.
Is it necessary for me to change a mistake, an erroneous address, or a wrong Social Security Number on my paper EE Bond?
- Misspelled Names EE bonds do not need to be reissued to fix minor spelling problems. If the error is substantial enough to preclude the bond owner from cashing it, the bond must be reprinted. Fill out and sign FS Form 4000 (download or order) as directed on the form, then mail it along with the bonds to the address listed on the form.
- Incorrect Address EE bonds do not need to be reissued if the address on the bonds is incorrect.
- Incorrect Social Security Number To correct a Social Security Number, EE bonds do not need to be reissued. The Social Security Number isn’t used to determine who owns something or who owes taxes. It’s utilized to track down savings bond records if the bonds go missing and the owner doesn’t keep track of the serial numbers. Keep track of all of your bonds, including serial numbers.
The first five digits of your Social Security number or Employer Identification number are masked and substituted with asterisks on any papersavings bonds issued on or after August 1, 2006. This was done to preserve your privacy and keep your information from being used to steal your identity.
When paying qualified higher education expenses, qualified taxpayers may be able to deduct all or part of the interest collected on eligible EE and I Bonds issued after 1989. At the time of issuance, bonds must be issued in the name of a taxpayer who is 24 years old or older. There are also some restrictions and income limits in place. See IRS Form 8815 for more information on the education tax credit.
If you cash a bond before it reaches the age of five years, you will lose the last three months’ interest. And you can’t cash a bond until it’s been on the market for a year.
Patriot Bonds are paper EE bonds with the words “Patriot Bond” imprinted on them.
They are no longer available for purchase.
To buy an electronic savings bond as a gift, you’ll need the recipient’s full name, Social Security number, and/or taxpayer ID number. The gift bond is kept in the account holder’s “Gift Box” until the account holder acquires the recipient’s TreasuryDirect account number and is ready to transfer the bond to his or her account.
Before you can give savings bonds as gifts, you must keep them in your TreasuryDirect account for at least five working days. Treasury is protected against loss by the five-day hold, which ensures that the ACH debit has been performed satisfactorily before the cash can be moved.
The bond will then be transferred and an e-mail will be sent to the gift recipient.
I spotted savings bonds for sale on auction sites like eBayTM, but I assumed ownership was not transferable. I’m not sure how this works.
Savings bonds are sometimes marketed as collectibles or souvenirs. Because a savings bond is a registered security and ownership is non-transferable, the sale has no effect on the savings bond’s ownership. The owner or co-owners stated on the bond, not the individual who bought the bond at auction, nonetheless have a contractual connection with the US Treasury. As a result, the person purchasing it at auction is unable to cash it; he has simply purchased a piece of paper indicating that the bond is still the property of the owner or co-owners specified on the bond. If the bond was lost and has since been replaced, it may be the property of the United States Treasury in some situations. Bottom line: Buying a savings bond at an auction is a bad idea because you don’t get any title or ownership rights to the bond.
Is it possible to transfer savings bonds 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.
What is the procedure for changing the owner of a savings bond?
The name of a single owner or two co-owners will be printed on a US savings bond. The savings bond can only be cashed by a listed owner. To change the owner of a savings bond, a reissue request must be made to the US Treasury together with the bond.
When someone dies, what happens to a bond?
You can register a savings bond in your own name as the owner and the payable-on-death beneficiary as your chosen heir. While you are alive, only you have redemption and transaction rights as the owner. When you die, your specified beneficiary becomes the owner of the bond, with full redemption and transaction rights. If all named owners and beneficiaries pass away, the bond becomes part of the estate of the last person to pass away, and it is passed down to that person’s heirs.
Is it possible to cash in my parents’ savings bonds?
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.
What are my options for avoiding paying taxes on inherited savings bonds?
If you inherit the bonds, you may have a different option. The bonds can be redeemed by the executor of the deceased’s estate, who will then have them reissued to you after paying the estate’s taxes on the interest. You can avoid paying tax on interest earned during the decedent’s lifetime by doing so.
Savings bonds are assets that are not subject to probate. If no survivor is specified, or if that individual has died, the bond becomes an asset of the estate, which complicates things and makes distribution more time consuming.
Yes. Cashed bonds are reported on IRS Form 1099-INT. When you cash your bond or after the end of the tax year, the form may be available.
Do I have to pay taxes on inherited savings bonds, though? Inheritance from a Decedent’s Estate
Because the interest generated on your inherited bonds is considered income, it must be reported and taxed. The IRS draws a boundary between interest that is considered “income in respect of a decedent” and interest that is considered “your income.”
If the interest wasn’t included in the decedent’s income and estate, you’ll have to pay tax on it when you cash out the bond. When the bond is cashed out, any interest that accrue after the decedent dies is always included in your income.
Do those who receive savings bonds have to pay taxes on them? The law typically states that savings bonds should be transferred to the bond’s beneficiary after death. If the decedent already paid taxes on the accumulated interest, the earnings on inherited savings bonds are not taxable to the heirs, but the heirs are accountable for any unpaid taxes.
Is it possible to cash a savings bond that isn’t in your 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.)
Is it possible to reissue lost savings bonds?
You can obtain a replacement electronic savings bond if your paper bond is lost, stolen, destroyed, disfigured, or you never received it. Individual savings bonds are not splittable and must be reissued in their entirety. You can request that your bond be redeemed instead of replacing it electronically.
What is the name of the person who owns a savings bond?
There is only one owner listed. Only that person is allowed to conduct business. The bond becomes part of his or her inheritance if he or she dies.
This is referred to as exclusive ownership in the case of electronic bonds.
Single ownership for paper bonds.
Transactions can only be made by the owner.
If he or she passes away, the beneficiary becomes the sole owner of the property.
An entity cannot be the beneficiary.
Although each owner may cash without the other’s knowledge or agreement, most other transactions require both owners’ signatures.
What debts are waived when someone dies?
What Types of Debts Can Be Forgiven When You Die?
- Debt that is secured. If the dead had a mortgage on her home when she died, whoever inherits the property is accountable for the debt.
- Debt that is not secured. Any unsecured debt, such as a credit card, can only be paid if the estate has sufficient assets.