Savings bonds are accrual-type securities that have been offered by the United States Department of the Treasury since 1935. They can be purchased for yourself or given as gifts. Because of the simplicity, low risk, and predictable interest rate, savings bonds traditionally have been popular financial gifts to children or grandchildren.
For our clients with revocable living trusts, we typically recommend retitling assets into the name of the trust in order to take full advantage of the estate plan. Savings bonds are no exception. When savings bonds are retitled to a personal trust, they are reissued by the U.S. Treasury.
Before you can retitle savings bonds, you will need to have an account on TreasuryDirect.gov. If you do not already have an account, you can create one here. Then, to transfer existing Series EE or Series I bonds into your trust, you will need to complete FS Form 1851, Request to Reissue United States Savings Bonds to a Personal Trust. If you have Series HH bonds, you will also need to complete FS Form 5396, Direct Deposit Sign-Up Form. If you did not transfer the bonds during lifetime here is information on inheriting savings bonds.
Be sure to check the issue date if you think your bonds may be close to maturity. If a bond will mature in the next month, it cannot be reissued. Both Series EE and Series I bonds mature 30 years from their issue date.
If you are interested in working with a Georgia attorney to create a trust, call Grissom Law, LLC today at 678.781.9230 to schedule a time to meet and discuss your needs.
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