When, following state law, a court appoints an individual or an organization to act as guardian on behalf of a living person, the court has established a living estate.
One typical reason for a living estate is that someone has been legally declared to be incompetent to take care of their own financial affairs.
We allow savings bonds to be registered to a living estate when the guardian is acting on behalf of an individual. We do not allow this registration when the guardian is acting on behalf of a federal, state, or local government.
If you are the legal guardian of a living estate, you may
- cash the estate's savings bonds
- have us reissue the bonds (However, an attorney-in-fact cannot request a reissue,)
- file a claim for a lost, stolen, or destroyed bond
- check if the person owns bonds you can't find.
In addition, individuals can self-appoint an attorney-in-fact to cash in bonds on their behalf. A durable power of attorney document is required.
This page tells you how to do each of those tasks.
Important notes for all these tasks
- When you send us a bond, leave it unsigned.
- We can't return what you send us. Therefore, send only copies of documents like your letters of appointment. Be sure that everything is legible on the copy, including the seal or stamp of the court.
- Be sure that all documents and forms you send us are complete, signed, and certified according to the instructions on the form. Incomplete or inaccurate submissions delay processing.
- Each form is available online.
- Each form has instructions on how to fill it out and where to send it.
Cash (redeem) savings bonds in a living estate
To cash a savings bond held in a living estate, send us
- FS Form 1522.
- Your power of attorney OR a certified copy of your letters of appointment
- The unsigned bond(s) you want to cash
Reissue savings bonds in a living estate
We handle reissuing bonds in a living estate on a case-by-case basis.
Therefore, contact us for this request:
1-844-284-2676
savbonds@fiscal.treasury.gov
File a claim for lost, stolen, or destroyed savings bonds in a living estate
To file a claim, send us:
- Either your power of attorney or a certified copy of your letters of appointment
- FS Form 1048
On FS Form 1048, you have the option of getting cash for the bond or getting a replacement bond. Replacement HH bonds are on paper. Replacement EE or I bonds are electronic.
Check for other savings bonds in a living estate
If you think the living estate might include bonds that you can't find, you can use our Treasury Hunt database to search for them. We update the database every month.
To search, you need the bond owner's Social Security Number (SSN), or name and state. For a living estate, that would be the SSN or name and state of the person for whom you are the legal guardian.
If the search turns up bonds for you, you'll get information on how to claim and cash them.
FAQs
For an estate that is being administered, the legal representative of the estate must open a TreasuryDirect account in the name of the estate in order to conduct transactions. The legal representative of the estate may then conduct any transactions that are available to an individual account owner.
Does TreasuryDirect allow beneficiaries? ›
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.
Can a living trust have a TreasuryDirect account? ›
The trustee must set up a TreasuryDirect Trust account for the reissued bonds. Please note, the trustee who manages the trust account must have the authority to act alone on behalf of the trust.
How do you cash savings bonds if the owner is deceased? ›
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).
Do Treasuries have a survivor option? ›
A survivor is named on the bond(s)
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. If only one person is named on the bond and that person has died, the bond belongs to that person's estate.
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.
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.
Can treasuries be inherited? ›
If you own certain kinds of government securities, including Treasury bills and notes and savings bonds, you can name someone to inherit them without probate.
How to notify TreasuryDirect of death? ›
Fill out FS Form 5336. WAIT to sign until you are in the presence of a certifying official, as explained on the form. Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds.
Can you have more than one TreasuryDirect account? ›
You can potentially have two accounts in TreasuryDirect to accommodate your individual and trust needs, but the details depend on the type of trust and your specific situation. Here's a breakdown: Individual Account: Yes,you can definitely have a primary individual account for yourself in 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.
Should I put my bank accounts into my living trust? ›
Creating a revocable living trust gives you a legal document that will protect your property, including your bank accounts and any other assets in your estate. You should put your bank accounts in a living trust to ensure the funds are easily accessible for your beneficiaries when the time comes to inherit.
Can I name a beneficiary on my TreasuryDirect account? ›
The coowner whose name is remaining on the bonds must be shown as owner or first-named coowner on the new bonds. The name of another person may be added as a coowner or beneficiary.
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.
Do savings bonds go through probate? ›
Because US Savings Bonds are federal assets, they do not have to abide by the California Probate Code. The threshold for US savings bonds must go through probate is $100,000 or more.
Can bonds be transferred after death? ›
The LPRs will have a choice on how they distribute the value of the bond to the beneficiaries of the estate. They can either: surrender the bond and pay the proceeds to the beneficiary or. assign the bond to the beneficiary.
What happens when an account owner dies? ›
When a bank account owner dies, the process is fairly straightforward if the account has a joint owner or beneficiary. Otherwise, the account typically becomes part of the owner's estate or is eventually turned over to the state government and the disbursem*nt of funds is handled in probate court.
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.
