The bond is part of the estate of the person who died last. The surviving person becomes the owner as if the survivor had been the only owner from the time the bond was issued.

Do US savings bonds go through probate?

It is very common for an individual to purchase a savings bond titled in their own name. However, if you choose to do this, the savings bond will become part of your estate and will have to go through the probate process, even if you have a will specifying who you would like to inherit it.

Can a inheritor redeem an inherited savings bond?

As an inheritor, you can either redeem the bonds or get them “reissued” in your own name, in which case you can continue earning whatever interest the bond pays until its maturity date. And before you decide to hold them or fold them, there are also various income tax strategies to consider.

What happens to savings bonds of a deceased parent?

If the deceased parent was sole owner or the last surviving owner named on the bonds, they become the property of the parent’s estate. Proof of Identity, Proof of Death Take the savings bonds to a bank or other financial institution if you are now the owner, or if your parent named you as survivor beneficiary on the bonds.

What do you need to know about inherited savings bonds?

Inherited Savings Bonds: What You Need to Know. Interest on EE Bonds and I Bonds gets added to their initial value until the bonds are redeemed. The difference between the purchase price of the bond and the redemption value of the bond is subject to federal income tax; it is exempt from state and local income tax.

How can I Change my series H savings bond?

If you are the survivor, you can convert your bond using SmartExchange. After it’s converted, the bond will be registered in your name alone. Series HH: These bonds are still reissued in paper form. See instructions at “ Reissuing or Replacing Series HH Savings Bonds .”