First: who owns the bond now?
| Situation | Who owns the bond |
|---|---|
| Two people are named and one dies | The survivor, as if they had been the only owner from the start |
| Only one person is named and that person dies | That person's estate |
| Two people are named and both have died | The estate of whoever died last |
If you're named on the bond (co-owner or beneficiary)
The bond passes straight to you and isn't part of the estate. For EE and I bonds that are still earning, you have three options:
- Do nothing: keep the bond and let it keep earning.
- Cash it at a bank that will pay it. Ask what death certificate and ID they need.
- Reissue it in your name. Treasury reissues EE and I bonds as electronic bonds in TreasuryDirect.
Bonds that have stopped earning, and all HH bonds, should simply be cashed.
If no one named on the bond is alive
The bond belongs to the estate, and the route depends on how the estate is settled:
- Court-administered estate. A court-appointed representative (executor or administrator) handles the bonds. A court must administer the estate if its savings bonds and other Treasury securities total more than $100,000 in redemption value at the date of death.
- Small estate with no court ($100,000 or less in Treasury securities). A "voluntary representative" can act using FS Form 5336, Part B. This must be an adult surviving spouse, blood relative, legally adopted child or next of kin, in a strict order of priority. The representative can cash the bonds for everyone entitled to them or distribute the bonds to them. Everything must be submitted in one transaction.
Electronic bonds
If the person who died had a TreasuryDirect account, contact Treasury. It will put a hold on the account and tell you what to do.
Taxes on inherited bonds
The interest earned before death can be reported on the deceased owner's final income tax return, or by the person who inherits the bond when it's cashed or matures. Estate and inheritance taxes can also apply. See savings bond taxes and ask a tax professional.
Sources: TreasuryDirect, Death of a savings bond owner; Non-administered estates.
Common questions
Can I cash my late parent's savings bonds?
If you're named on the bond as co-owner or beneficiary, yes. If no living person is named, the bond belongs to the estate and must go through the estate's representative, or through FS Form 5336 for small estates of $100,000 or less in Treasury securities.
What is FS Form 5336?
It's the form for paper bonds in an estate that isn't going through court, where the savings bonds and other Treasury securities total $100,000 or less. A qualified family member acts as voluntary representative.
Do inherited savings bonds keep earning interest?
Yes, until they reach final maturity: 30 years for EE and I bonds.