Electronic savings bonds
If the person who died has an online TreasuryDirect account, contact us.
We will put a hold on the account and tell you what to do.
Paper savings bonds
This page tells you what to do with paper savings bonds after the owner dies.
From this page, you can determine which situation applies to you and then go to the page that tells you what to do in that situation.
Who owns the paper savings bonds?
| The situation | Who owns the bond |
| Only one person is named on the bond and that person dies | The bond is part of that person's estate |
| Two people are named on the bond and both have died | The bond is part of the estate of the person who died last |
| Two people are named on the bond and one dies | The surviving person becomes the owner as if the survivor had been the only owner from the date we issued the bond. |
Which situation applies to me?
In this section, we describe these 3 possible situations:
- A survivor – co-owner or beneficiary – is named on the bond(s)
- The estate has (or had) a court-appointed representative, and no surviving co-owner or beneficiary is named on the bond(s)
- The estate never had a court-appointed representative, and no surviving co-owner or beneficiary is named on the bond(s)
Read the following descriptions to see which applies to you and to find the link to details about what to do in that situation.
A survivor is named on the bond(s)
If a surviving co-owner or beneficiary is named on the savings bond, the bond goes directly to that person. It does not become part of the estate of the person who died.
If you are the named co-owner or beneficiary who inherits the bond, you have different options for paper EE or I bonds and paper HH bonds.
Go to Inheriting bonds as a named co-owner or beneficiary
If only one person is named on the bond and that person has died, the bond belongs to that person’s estate.
If two people are named on the bond and both have died, the bond belongs to the estate of the one who died last.
That person's estate (what the person owns) must be "settled" – distributed according to the person's will or the law. With regard to savings bonds, the following are the likely situations for settling the estate:
The estate has (or had) a court-appointed representative, and no surviving co-owner or beneficiary is named on the bond(s)
If an estate contains Treasury securities (including savings bonds) that total more than $100,000 in redemption value as of the date of death, a court must administer the estate.
If a court is involved, you might have one of these situations:
- the estate is being settled under special provisions of state law
- a court-appointed representative is in charge of distributing the estate (an open administered estate)
- a court-appointed representative was in charge but has been discharged before the bonds are distributed (a closed administered estate)
Go to Court-appointed representatives
The estate never had a court-appointed representative, and no surviving co-owner or beneficiary is named on the bond(s)
In this situation, no person named on the bond is living and all of the following are true. The estate of the person who died (or who died last if two people are named on the bond)
- has not been and will not be formally administered through a court
- has not been and will not be settled under special provisions of state law relating to small estates
- has savings bonds and other Treasury securities that in total come to $100,000 or less in redemption value as of the date of death
Go to Non-administered estates
What about taxes?
To understand the tax implications of various situations related to the death of a savings bond owner, consult your tax advisor or these Internal Revenue Service (IRS) publications:
IRS Publication 550, Investment Income and Expense
IRS Publication 17, Your Federal Income Tax
IRS Publication 559, Survivors, Executors, and Administrators
FAQs
If the beneficiary has a TreasuryDirect account, the security will be transferred to that account. If the beneficiary does not have an account, he or she may establish an account. Alternatively, a beneficiary named on a savings bond may request redemption.
What happens when the owner of an I bond dies? ›
The surviving person becomes the owner as if the survivor had been the only owner from the date we issued the bond.
How to redeem savings bonds when the owner is deceased? ›
Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds. Have each person who is entitled to a distributed bond also fill out and sign the appropriate forms: If they want cash for their bond: FS Form 1522. If it is an EE or I bond and they want to keep it: FS Form 4000.
What is the second named registrant on TreasuryDirect? ›
Second-Named Registrant - The second person named in the registration of a security held in TreasuryDirect. In the example, "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321," Joseph Doe is the second-named registrant.
Do TreasuryDirect accounts have beneficiaries? ›
Series EE and I
Once in your TreasuryDirect account, the bond will be registered in your name alone. You can then add either a secondary owner or beneficiary. Once you have a TreasuryDirect account, you can convert other paper bonds you own to electronic bonds.
What happens when an account owner dies? ›
If the account holder established someone as a beneficiary, the bank releases the funds to the named person once it learns of the account holder's death. After that, the financial institution typically closes the account. If the owner of the account didn't name a beneficiary, the process can be more complicated.
Do you have to pay taxes on savings bonds you inherit? ›
As a result, when inheritors redeem inherited bonds on which the tax has been deferred, they will owe tax on all the interest that has accumulated.
Does the beneficiary of an I bond pay taxes? ›
But if the executor doesn't include the interest earned up until the date of death on the final tax return, the beneficiary will have to pay taxes on all the interest earned when the bond is redeemed or matures, whichever happens first.
What is the difference between a second owner and a beneficiary I bond? ›
Upon the death of either the primary or secondary owner, the survivor will be considered the sole owner of the bond. Beneficiary: Only the owner may cash the EE or I Bond during his or her lifetime. The beneficiary automatically becomes the sole owner of the EE or I Bond when the original owner dies.
How do I cash in my deceased parents' bonds? ›
How To Cash In Premium Bonds After A Death. If the Executors choose to cash in your premium bonds after you pass away, then they will need to contact NS&I and provide them with the necessary information. This information will include the deceased's name, address, date of birth and National Insurance number.
Fill out and send us FS Form 4000 and the bonds. In your TreasuryDirect account, you can: add another person as secondary owner. add or remove a beneficiary.
What is the penalty for not cashing matured savings bonds? ›
While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.
What happens to bonds when someone dies? ›
Claim the Premium Bonds immediately – they can be repaid as part of the estate administration process, and the funds from this sale will be included as part of the total estate value. Therefore, beneficiaries will be able to receive this quickly as part of their inheritance.
What if the pod on a savings bond is deceased? ›
However, if the owner dies, instead of the bond going into the person's estate, the beneficiary automatically becomes the single or sole owner. The beneficiary must be a person, not an entity. The registration says "POD" standing for "PAYABLE ON DEATH."
What is the 45 day rule for TreasuryDirect? ›
Customer service personnel will perform the transfer when the form is received and approved. You'll receive an e-mail confirming that activity has occurred in your account. TreasuryDirect requires Treasury Marketable Securities be held for 45 days following original issue before they may be externally transferred.
Do Treasury bonds get a step up in basis at death? ›
Another thing to note: Savings bonds don't get a step-up in basis at death the way stocks or other investments do. That means you have to pay tax on the full amount of interest due on the bonds as the inheritor.
Do beneficiaries pay taxes on I bonds? ›
If the executor doesn't include the interest income on the deceased owner's final federal income tax return, the beneficiary will owe taxes on all pre-death and post-death interest once the bond matures or is redeemed, again whichever is earlier.
Can you transfer Treasury bonds to another person? ›
Yes. The owner can transfer EE and I Bonds to another person with a TreasuryDirect account; however, you must wait five business days after the purchase date to transfer the bonds. Are there any fees for transferring EE and I Bonds? No.
Who pays tax on savings bonds after death? ›
If the executor doesn't include predeath interest on the decedent's final return, then the beneficiary owes federal income tax on all pre- and post-death interest on the earlier of the bond's maturity or redemption.
