Ask Terry Questions I bonds at death

I bonds at death

By Terry Savage on July 04, 2022 | Chicken Money

Hi Terry. Im 69 retired, my husband 79 retired. Have no debt have about $160,000 is a savings account. I have about $37,000 in traditional IRA. Will need to buy a car soon. If I open an I Bond for myself and my husband is doing everything online safe? I’m terrified of giving out our checking or saving account number, which by the way is one better than the other? I know to leave it for at least 5 years so there is no interest penalty but what happens if one should pass away? How would you handle an account closure online? It’s not like you can send a death certificate. I need to make at least something on my little savings that I do have! Hope you can help. Also how long do I have to open those accounts? I know interest changes every 6 months. Thanks for any help.

Terry Says

At this point I think I-bonds are a perfect investment for this portion of your savings. Don’t be afraid. The banking system transfers trillions of dollars in Treasuries every single day safely!
Read this article about how to open an account at TreasuryDirect.gov.

Do you have a current estate plan? Is it a Revocable Living Trust? If so, you can buy the bonds in the name of your trust, so the estate issue becomes automatic. And if you just have a will, then when one of you dies, the other will inherit according to your will. Treasury does accept death certificates and then pays out to the heirs. Not difficult at all. But let’s hope you live a long time and enjoy the high rates on I bonds.

money

ASK TERRY

a personal
finance question