Transfer of USSavings bonds
I am in possession of USSavings bonds that are co-owned by my deceased mother in law and recently deceased husband. I would like to transfer them to my grandchildren. How do I do this?
Terry Says
YOu’ll find the best information at TreasuryDirect.gov.
But here are a few facts.
You’ll need a copy of the death certificate to transfer the bonds into your name. BUT you might (if they are near maturity) want to cash them in on behalf of the estate, which would under current tax law, get a step-up in cost basis, so there would be no Federal income taxes owed on the gains. Do the numbers with an accountant, to make sure this works in your favor.
You can’t transfer them to your grandchildren without paying taxes anyway. And instead of putting anything in their name, contribute the money to a 529 College Savings Account. Read this column or go to www.SavingforCollege.com to learn more.
