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 secondary owner has a TreasuryDirect account, the security will be transferred to that account. If the secondary owner does not have an account, he or she may establish an account. Alternatively, a secondary owner named on a savings bond may request redemption.
What if the owner of a savings bond is deceased? ›
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.
Can you have a beneficiary on a TreasuryDirect account? ›
In your TreasuryDirect account, you can: add another person as secondary owner. add or remove a beneficiary.
What is the difference between primary owner and beneficiary TreasuryDirect? ›
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.
What happens when an account owner dies? ›
Key takeaways
After someone dies, a sole-owned bank account may go to a named beneficiary or be handled by the executor of the estate. Joint accounts typically have automatic rights of survivorship, but it's still important to check with your bank to ensure smooth access to funds.
Who pays taxes on inherited savings bonds? ›
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.
What to do if you inherited savings bonds? ›
To redeem your inherited savings bonds, you will need to contact the financial institution that holds the bonds. You will need to provide proof of identity and the bondholder's death certificate. Once the bonds have been redeemed, you will receive payment for the bond value and interest earned.
Can savings bonds be transferred to another person? ›
TreasuryDirect is the official United States government application in which you can buy and keep savings bonds. You can gift a savings bond to adults or children.
Do bonds get a step up 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.
How to avoid paying taxes on savings bonds? ›
You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.
The second-named owner is the secondary owner. The registration says "WITH." Either owner may cash the bond without the knowledge or approval of the other. Both owners must sign for most other transactions.
Do you need a death certificate to cash a POD savings bond? ›
Provide a certified copy of the decedent's death certificate, if the bonds are registered "A POD B" and "A" is deceased. Death certificates must be certified or sworn to by the state or local registrar, with a legible seal or stamp, as a true and correct copy taken from the official records.
Can you inherit Treasury bonds? ›
The estate of someone who has died is a non-administered estate with regard to savings bonds if all of these are true: No person named on the bond is living. If someone living is named on the bond as a co-owner or beneficiary, the bond does not become part of the estate of the person who died.
How do I cash in my deceased parents' bonds? ›
If the bonds cannot be cashed at a local bank, the legal representative of the estate must complete a Special Form of Request for Payment of United States Savings and Retirement Securities Where Use of a Detached Request Is Authorized (FS Form 1522).
Can Treasury bonds be transferred to another person? ›
You can gift a savings bond to adults or children. A child under 18 can have a TreasuryDirect account if the child's parent or other adult custodian has a TreasuryDirect account and sets up a linked account for the child. In TreasuryDirect, you can give anyone either EE or I savings bonds.
What happens to an investment bond on death? ›
On the death of a policyholder who is also the last life assured, the bond automatically comes to an end and is encashed. Any gains on the bond will be taxed at that point and the tax is reported on the final tax return of the deceased, as a lifetime matter.
