How to cash in my Savings Bonds

I am in a nursing home with no family. How can I cash in my EE savings bond?

Terry Says:  I am so glad you wrote.  If you don’t have family members to help you with this, I want to ask who will take care of other important things — like your healthcare power of attorney, or handling your money if you become incapacitated?  I know this is a huge, huge issue for many seniors who don’t have children, or at least nieces or nephews or someone they can trust.   Frankly, if I could clone myself, I’d create a business helping those in this situation.  Many of my friends have confided in me that they expect have this problem in their old age.

So, back to your question.  Where do you live?  Would you mind writing back, or sending me an email at Terry@TerrySavage.com.  There are elder law attorneys who can help in situations like yours — not only with the paperwork, but with creating trustees who can handle your assets, such as savings bond, for a reasonable fee.  But that really applies to people who have enough money to afford that kind of help.

I want to ask if you just want to cash in the savings bonds — or if you MUST cash them in because you need the money?  If you don’t need the money, then please hold on to them — because all EE bonds are still paying interest, and if you bought them a long time ago, they are earning a much higher rate of interest than you could get in the bank.  But if you must cash them in because you need the money now, first check to see what they are worth.  If you have the bond serial numbers and click on this link, you can get their current value: http://www.treasurydirect.gov/BC/SBCPrice.

Probably the easiest way to cash them in is to take them to the bank, any bank.  BUT, if you can’t get out to go to the bank, here’s a mailing address: Federal Reserve Bank of Minneapolis, P.O. Box 214, Minneapolis, MN 55480.    You will need to call them first at 612-204-5000 and ask for the savings bond department, and talk to an individual and ask what else is needed (perhaps a written request) to mail to them along with the savings bonds.

Now, remember, you will owe taxes on all the accrued interest.  And that might impact your cost of Medicare Part B or other programs, depending on how much money is involved in this sale.   Also, if you don’t need the money, and if you have named a beneficiary on the bonds, that person will not have to pay taxes on the accrued interest as of the date of your death.

So think carefully about why you are cashing in these bonds. And if you need more personal help on this, please send me an email.