The Bureau of the Fiscal Service of the U.S. Department of the Treasury, published a form (the FS Form 5336) that allows a Voluntary Representative to claim Savings Bonds belonging to a deceased individual. This form cannot be used if the estate is in probate or being administered in court (such as summary administration or other forms of short probate), and cannot be used to make payments to a trust.
If the estate is in probate, the court-appointed representative must submit all the probate paperwork to the appropriate group in the Department of Treasury. If a named beneficiary is on the savings bond, that person can have the bond reissued in their name or cash the bond.
If, however, the deceased party owned savings bonds at his or her death, and no probate is needed, the form 5336 provides a way to claim the bonds if the total amount of the bonds is less than $100,000. A Voluntary Representative must fill in the form. The form states a Voluntary Representative is one of the following (in this order): a surviving spouse, a child, a descendant of a child, a parent of the deceased, a sibling of the deceased, or the next of kin under the law.
To complete the form, the Voluntary Representative will need the Title of Security for each bond, the issue date, the face amount, the identifying number, and the name or names the bond was registered in. If the bond was in more than one person’s name, you must provide the information of the person who died most recently along with a certified copy of the death certificate for ALL persons registered on the bond.
Bonds are either savings bonds or matured treasury bills, notes, or bonds; or unmatured marketable securities. If the assets are savings bonds or matured treasury bills, the assets may be paid to the Voluntary Representative or directly among the persons entitled to the assets under the law of the state in which the deceased passed. Any unmatured marketable securities must be transferred to an account with a financial institution, broker or dealer to be sold on behalf of the people entitled to the funds.
When signing and completing the form, it is important to note that a notary is NOT an acceptable form of “certified officer”. A recognized certified officer includes a Signature Guaranteed seal or stamp, an Endorsement Guaranteed seal or stamp, a Corporate seal or stamp, or the Issuing or Paying agent’s seal or stamp. A medallion stamp guarantee is also accepted.
While this article gives an overview of how to redeem bonds without probate, be aware that different series of assets are treated differently, and have separate requirements. Additionally, each series or type of asset must be mailed to a different department of the treasury. Form 5336 provides detailed instructions on where to mail the paperwork for each asset and what information is required, but it must be read carefully to assure the information provided is correct. The treasury will not accept transfer requests with alterations or corrections.
At Grissom Law, we understand all the different forms for life insurance, bonds, retirement accounts, and other assets can be daunting, confusing, and overwhelming. We have experience in reviewing various forms and making the processes as easy as possible for those who are trying to manage the estate.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site, you understand that there is no attorney-client relationship between you and Grissom