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I and E Bond Beneficiary Designation For Existing Bonds
Old 11-18-2009, 01:12 PM   #1
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I and E Bond Beneficiary Designation For Existing Bonds

I have some I and E bonds for which I didn't designate a beneficiary. I would like to do that now, but I cant find any information about how to proceed or even whether it can be done. These are paper bonds, but I could convert them to book entry if that would help.

I spent a fair amount of time this morning looking at the treasury direct site, but I admit that I am not the world's best web searcher.

I have fresh in my mind an example of what not to leave for your cleanup crew, so I am trying to clean up in advance.

Any ideas for me?

Ha
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Old 11-18-2009, 01:38 PM   #2
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http://www.treasurydirect.gov/forms/sav4000.pdf
Looks like -- How the trick is done?
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Old 11-18-2009, 05:45 PM   #3
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Ha,

I don't know about I-bonds, but I do know that you can "recharacterize"
paper E-bonds having done so recently with inherited bonds. The process
involves filling out a gov. form indicating your requirements.

I think you can Google E-bond recharacterization and follow the yellow brick road.

Regards and Cheers,

charlie
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Old 11-18-2009, 06:09 PM   #4
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Individual - Replacing or Reissuing EE/E or I Bonds


Ha, above is the link you need.

Cheers,

charlie
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Old 11-18-2009, 09:23 PM   #5
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Thanks a lot! One thing I thought of- what does "Pay on Death" mean with respect to these bonds? Do they redeem them and give the beneficiary the cash, or do they just re-title them?

They are clearly worth much more as I-bonds than as the redemption values, since they all have 3+% real rates. I can imagine that Our Uncle would love to clear these off his books.

Ha
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Old 11-18-2009, 10:09 PM   #6
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Thanks a lot! One thing I thought of- what does "Pay on Death" mean with respect to these bonds? Do they redeem them and give the beneficiary the cash, or do they just re-title them?

Ha
I think I found the answer. They can simply be re-titled.

Ha
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Old 11-21-2009, 12:01 AM   #7
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HA
I've been thingin' about this whole reissue option. Seems if you as owner reissued bond in spouses name as owner(or vice versa) - you could trigger taxable event. You would owe tax on interest upto that point and spouse would start over earning interest on the bond. Thus preserving that valuable +3% bond, but paying the interest before it accumulates to the point of putting one in a higher tax bracket when it matures. I realize one could simply choose to pay up annually, but this seems more flexible and could help fill up the lower tax brackets. Hmmm... Is it skaithingly brilliant OR is there a flaw in there somewhere?
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Old 11-21-2009, 12:53 AM   #8
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HA
I've been thingin' about this whole reissue option. Seems if you as owner reissued bond in spouses name as owner(or vice versa) - you could trigger taxable event. You would owe tax on interest upto that point and spouse would start over earning interest on the bond. Thus preserving that valuable +3% bond, but paying the interest before it accumulates to the point of putting one in a higher tax bracket when it matures. I realize one could simply choose to pay up annually, but this seems more flexible and could help fill up the lower tax brackets. Hmmm... Is it skaithingly brilliant OR is there a flaw in there somewhere?
It might be a great strategy JustN, but it likely will not work for me. Reason one, no spouse. And reason two, my lower brackets are always all filled up, because I do not place avoiding long term capital gains above all other considerations, I have a lot of income generating stocks, and the lion's share of my assets are in a taxable account.

All I want to do is add a benfeciary not a co-owner, and it looks like that will not trigger taxes as I understand what the website says.

Ha
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Old 11-21-2009, 05:17 AM   #9
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Nope it shouldn't, just removing owner/coowner from bond. Perhaps someday you'll have a haha spouse and you can tuck it away. I'm thinking when I take SS I'll be filled up t. bracket wise, so sometime before getting benefits provided I can get all the IRAs converted before then.
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Old 11-21-2009, 09:45 AM   #10
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Perhaps someday you'll have a haha spouse.
Only if she drugs me.
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