Death of a Savings Bond Owner
Who Owns the Bond?
- If only one person is named on a savings bond, and that person is deceased, the bond becomes the property of their estate.
- If both people named on a bond are deceased, the bond is the property of the estate of the person who died last.
- If one of two people named on a bond is deceased, the surviving person is automatically the owner as if that survivor had been the sole owner from the time the bond was issued.
The information and links below explain the appropriate actions for your circumstances.
If a Surviving Person Is Named on a Bond
If you are named in a bond's registration with someone else who is now deceased, you can:
- Do nothing with the bond;
- Redeem the bond by presenting it with adequate identification at a financial institution that pays savings bonds; or,
- Get the bond reissued (re-registered) in your name alone or with some other living person as long as the bond is still earning interest and is not approaching final maturity.
To have a savings bond reissued in this situation, you'll need to send a certified copy of the deceased person's death certificate with the bonds and a reissue request PD F 4000 to a Treasury Retail Securities Site.
If There's No Survivor Named on a Bond
When there is no court involvement, if a decedent's estate:
- 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.
- Contains bonds totaling $100,000 or less (value as of the date of death).
The persons entitled to request disposition of the bonds should fill out a PD F 5336. If the estate contains bonds totaling $100,000 or more (current redemption value), the estate must be administered.
The bonds, a completed PD F 5336,
and proof of death of all deceased registrants should be sent to:
Bureau of the Public Debt
PO Box 7012
Parkersburg, WV 26106-7012
Estate Is Being Settled under Special Provisions of State Law Relating to Small Estates
If the court order or small estates affidavit awards specific bonds to specific people, each of those individuals may request payment by signing the back of the bond to which he/she is entitled and having his/her signature certified.
If the court order or small estates affidavit does not award specific bonds to specific people, all the persons entitled should fill out and sign a PD F 5394 agreeing to the disposition of the bonds.
The bonds, the notarized small estate affidavit or the Summary Administration court order (under court seal), a completed PD F 5394 (when necessary), and proof of death of all deceased registrants should be sent to the Bureau of the Public Debt address listed above.
Taxes after Death
Upon death of one of two people named in a bond's registration, any surviving person named on bonds as co-owner or beneficiary becomes the new owner. As the new owner, this person is required to include, on their tax return, the interest earned on the bonds for the year the bonds are redeemed or disposed of in a taxable transaction or the bonds reach final maturity, whichever occurs first.
Also, whoever files the deceased person's final, individual, federal income tax return for the year that person died has the option of reporting all interest earned on the bonds up to the date of death. If an owner or co-owner dies and is not survived by another co-owner or beneficiary, the bonds become the property of the estate of:
- The owner if named on the bonds alone; or,
- The person named on the bonds who died last if two people who are now deceased are named on the bonds.
The interest on those bonds for federal income tax purposes is reportable for the year the bonds are redeemed.
For more information, you may want to look at one or more of the following
IRS publications:
"Investment Income and Expenses"........................... Publication 550
"Your Federal Income Tax".................................. Publication 17
"Survivors, Executors, and Administrators"................. Publication 559
"Introduction to Estate & Gift Taxes"...................... Publication 950
