Series EE bonds after death, transfer to grandchild?
I have several Series EE bonds – in my (deceased) husband’s name, with me listed as POD. Can I update them to my name and insert a grandchild’s name as POD?
Terry Says
Have they matured yet? If so, or if they are within a month of maturity, they must be cashed in. If not, they can be re-issued by not in paper form to you as the person named on the bond. But they will be reissued in ledger form. Read these instructions at www.TreasuryDirect.gov for survivors who inherit Savings Bonds.
Note: If the executor of your deceased husband’s estate did not elect to pay taxes on the accrued interest, you will be responsible for declaring all of it when the bond is cashed in — either at maturity or before.
Subsequently, you could add your grandchild’s name — but that may not be worth it if the Savings Bond is close to maturity. (Even if you gift it, you must pay the taxes when the bond is eventually cashed in.) You would be better off cashing in the bond, paying the taxes, and opening a 529 College Savings Account for your grandchild. See this article.
