Ask Terry Questions Mature Series E bonds

Mature Series E bonds

By Terry Savage on January 15, 2024 | Financial Planning / Retirement

My mother died and left paper series E savings bonds registered under her name and my adult daughter. All bonds matured in 2022 and 2023. Total interest is over$42K and she knows she has to pay taxes on interest. Is it better to stretch out cashing the 26 bonds over a few years. Will She incur a tax penalty for underestimating her taxes? Is it safe to mail the bonds to the Treasury? Or would converting the acct to an on line account be a better idea! Lots of questions Thanks

Terry Says

First, use this link to find the value of the bonds:

Second, read this information about cashing in older paper bonds (and yes, they must be mailed by registered mail to the Treasury, and the process takes about 6 weeks).

And technically, your mother’s estate owes the taxes on the matured bonds! REad this:

You should consult the attorney who probated the estate. And yes, after death all bonds should be redeemed promptly. But the tax bracket of the estate might be far lower than that of your sister.

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