Matured savings bonds
Am I able to donate matured EEsavings bonds to a charity without having to pay taxes on the interest accrued?
They are in my name and have my children listed as beneficiaries but only payable upon death. I am retired and have to take RMDs and between that and my social security, I would like to donate them, but the taxes I will have to pay may not be worth it and since a charity is a non- profit they could benefit for the whole amount of the bonds’ current value.
Terry Says
Sorry, I double checked with Treasury on this. You must cash them in, pay the taxes, and then donate them — perhaps getting a charitable deduction, depending on whether it pays to itemize. And yes, the additional income from cashing in the bonds could impact your Medicare Part B premiums next year!
And since they are matured, you are supposed to cash them in now. If your children found them after your death, your estate would be liable for the taxes.
