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
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.
How do I report a death to TreasuryDirect? ›
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.
What happens to savings bonds when the owner dies? ›
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? ›
Make sure to choose the type of registration you want (Sole Owner, Primary Owner, or Beneficiary) and click the "This is a gift" box at the bottom of the Add New Registration page.
Can I cash my deceased parents' savings bonds? ›
If the bonds are $100,000 or less and the estate has not been formally administered through court, the beneficiary can request to cash in the bond by mailing a signed and notarized FS Form 5336 with the bond and proof of death to the Bureau of Public Debt.
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.
Are savings bonds taxable at death? ›
The short answer is yes, you generally will be responsible for taxes owed on savings bonds you inherit from someone else. The good news is that you may be able to defer taxes on inherited savings bonds or avoid it altogether in certain situations.
How do I avoid paying taxes on inherited savings bonds? ›
The Education Tax Exclusion
The IRS lets you avoid paying taxes on interest earned by Series EE and Series I savings bonds when you redeem them if you use the money toward qualified higher education costs for yourself, your spouse, or any of your dependents.
What happens if a bond dies? ›
Bail Bond and Death: Exploring the Consequences
Bail cancellation occurs upon the court receiving proof of death. A death certificate from a local or state registrar is sufficient in California. Once you provide this proof, any collateral used for the bond will be returned.
How do I change the ownership of a savings bond? ›
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.
Note: Do not buy savings bonds from someone else or in an online auction site. You cannot cash them. You can only cash bonds that you own or co-own unless you have legal evidence or other documentation that we accept to show you are entitled to cash the bond. How do I know how much my bond is worth?
What is the difference between primary owner and beneficiary in TreasuryDirect? ›
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 you cash in bonds if a person is deceased? ›
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.
Can you name a beneficiary on a Treasury bond? ›
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.
Who is the sole owner primary owner beneficiary of 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? ›
A deceased person's bank account is inaccessible unless you're a joint owner, a beneficiary of the account or the estate executor. Because joint ownership and beneficiaries can make a difference in how your bank account funds are distributed, planning is key.
Do Treasury bonds get a step up in basis at death? ›
Bonds inherited from someone who's passed away
Since E Bonds are income tax-deferred, not tax-exempt, income tax must ultimately be paid. And unlike stocks with capital appreciation, there is no step-up in basis, which would provide income tax-free passage of the appreciation.
