What documents do I need to cash a savings bond? Generally, if you're listed as the registered owner of the savings bond, you should need to bring just the paper bond and one or two current forms of identification to a bank or credit union.
Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds. Have each person who is entitled to a distributed bond also fill out and sign the appropriate forms: If they want cash for their bond: FS Form 1522. If it is an EE or I bond and they want to keep it: FS Form 4000.
In addition to the bonds, you'll need to provide proof of identity, like a United States driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522 to your local bank or credit union.
Redeem the bond by taking it to a bank or other financial institution that pays savings bonds (the beneficiary will need personal identification). Get the bond reissued (reregistered) in the beneficiary's name alone or with some other person.
Provide a certified copy of the decedent's death certificate, if the bonds are registered "A POD B" and "A" is deceased. Death certificates must be certified or sworn to by the state or local registrar, with a legible seal or stamp, as a true and correct copy taken from the official records.
However, if the owner dies, instead of the bond going into the person's estate, the beneficiary automatically becomes the single or sole owner. The beneficiary must be a person, not an entity. The registration says "POD" standing for "PAYABLE ON DEATH."
You cannot cash them. You can only cash bonds that you own or co-own unless you have legal evidence or other documentation that we accept to show you are entitled to cash the bond.
As a result, when inheritors redeem inherited bonds on which the tax has been deferred, they will owe tax on all the interest that has accumulated.
Banks and credit unions can redeem savings bonds over the counter. Find out more about becoming an agent and redeeming savings bonds.
Because US Savings Bonds are federal assets, they do not have to abide by the California Probate Code. The threshold for US savings bonds must go through probate is $100,000 or more.
A Social Security Number must be provided. If this is a gift bond purchase, use the owner's name and SSN, if available. If the owner's SSN is not available, use the purchaser's SSN. Use of the purchaser's SSN does not confer rights to the bond or require interest reporting.
In the event of death of the last or only surviving life assured, a 'chargeable event' occurs, causing the bond to end. This triggers taxation of any gains as savings income, which is then added to the deceased's other income for that tax year.
Sometimes, the beneficiary is designated on the savings bond. The bond will then go to the beneficiary when the bond owner dies. The U.S. Treasury Department will require a certified death certificate and other documentation so that the beneficiary may claim the bond.
For us to replace or cash your EE or I savings bond, you must fill out and submit FS Form 1048. To get the correct version, answer this question: Do you know your bonds' serial numbers? Use this FS Form 1048.
With that in mind, you have one option for avoiding taxes on savings bonds: the education exclusion. You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs.
While the principal amount of the CD transfers without income tax issues, any interest earned after death and before transfer will be treated as ordinary income on the tax return of the person who inherits it.
There is no penalty for holding onto a Series EE savings bond past the 30-year maturity period. Once a Series EE bond reaches its final maturity, it stops earning interest, but there are no penalties associated with holding onto it beyond that point.
The person who becomes the owner after someone dies is the “beneficiary” for that bond. When a bond includes a beneficiary, the bond is registered with the words “payable on death” or the letters POD.
The legal representative of the estate needs to complete a Request To Reissue United States Savings Bonds (FS Form 4000). If Series HH bonds are being reissued, the legal representative must complete and sign a Direct Deposit Sign-Up Form (FS Form 5396) for direct deposit of the interest payments.
If you cash a paper savings bond at a local bank, that bank is responsible for giving you a 1099. If you cash a paper savings bond by mailing it to Treasury Retail Securities Services, we mail you a 1099 by January 31 of the following year. (You can call us for a duplicate statement, if needed, beginning February 15.)
What is the benefit of a payable on death (POD) beneficiary? A payable on death (POD) designation means your bank account automatically transfers to a beneficiary upon the death of all account owners and co-owners. Setting up a POD beneficiary allows you to plan for the future and make your financial wishes clear.
Payable on Death: Taxes and Creditors
There is no federal tax for beneficiaries of POD accounts. There will be an inheritance tax, or death tax, depending on the state, that will need to be settled before any money can leave the account.
POD Accounts. Trusts and POD accounts each have advantages and disadvantages. Creating a trust is a more complex and costly process than setting up a POD account. You will need an attorney to help you create a trust, and many trusts need ongoing maintenance.