Yes, you generally can cash your deceased parents' savings bonds, but the process requires proper legal authority and varies depending on the bond series.
Understanding Savings Bonds After a Death
When a savings bond owner passes away, the bonds typically become part of their estate. The ability to cash them depends on who the bond is registered to, if there's a co-owner or a beneficiary, and the legal status of the person attempting to redeem them.
Who Can Cash Deceased Parents' Bonds?
Only the legally authorized representative of the deceased's estate can redeem savings bonds that are part of the estate. This person is usually:
- The executor named in a will.
- The administrator appointed by a court if there is no will.
- A designated beneficiary if the bond was set up with a "Payable on Death (POD)" designation.
- A surviving co-owner if the bond was held jointly.
How to Cash Different Savings Bond Series
The method for cashing savings bonds depends on the specific series. It's crucial to identify the bond type before proceeding.
Here's a breakdown of common savings bond series and their redemption methods:
| Savings Bond Series | Redemption Location | Notes |
|---|---|---|
| Series EE, Series E, Series I | Local financial institutions (banks, credit unions) | These are common bond types. Many local banks and credit unions can process the redemption. Be aware that some transactions, especially those involving deceased estates, may need to be forwarded for further processing by the U.S. Treasury. |
| Series HH, Series H | Must be mailed directly to the U.S. Treasury (typically to a specific address provided by TreasuryDirect for processing decedent's estate transactions). | These bonds are less common now as they were interest-bearing income bonds. They cannot be cashed at local banks and require direct submission to the Treasury. |
Required Documentation
Regardless of the bond series, you will need specific documents to prove your legal authority and the bond's ownership by the deceased. Always gather these essential items:
- Certified Copy of the Death Certificate: This document proves the bond owner's passing.
- Proof of Legal Authority: This is critical. It can include:
- Letters Testamentary (if there's a will and an executor is appointed).
- Letters of Administration (if there's no will and an administrator is appointed).
- A Small Estate Affidavit, if applicable in your state and the estate qualifies.
- Probate court orders confirming your authority.
- Your Valid Photo Identification: Such as a driver's license or passport.
- The Original Savings Bonds: Paper bonds must be physically presented or mailed. For electronic bonds held in a TreasuryDirect account, access to that account is required.
- TreasuryDirect Forms: You will likely need to complete specific forms, such as FS Form 1455, "Claim for Payment of United States Savings Bonds or Notes," or other forms related to decedent's estates. These forms specify the required certifications and documentation.
Steps to Take
- Identify the Bond Type: Look at the face of the paper bond (or check the TreasuryDirect account) to determine the series (e.g., EE, I, HH).
- Determine Your Role: Confirm if you are the legal executor, administrator, co-owner, or beneficiary with proper documentation.
- Gather Documentation: Collect all necessary legal documents as listed above.
- Contact a Financial Institution (for EE, E, I bonds): Call your local bank or credit union in advance to confirm their policy on redeeming bonds for a deceased estate and to ask about their specific requirements. Be prepared for them to potentially forward the transaction to the Treasury.
- Contact TreasuryDirect (for HH, H bonds or complex cases): For Series HH/H bonds, or if a local bank cannot assist, you will need to directly contact TreasuryDirect for instructions and the correct mailing address. Their website is a valuable resource for forms and detailed guidance.
- Complete Forms and Redeem: Fill out all required forms accurately, attach the necessary documents, and proceed with the redemption method specific to the bond series.
Navigating estate matters can be complex. If you encounter difficulties or have unique circumstances, consider consulting with an estate attorney or contacting TreasuryDirect directly for guidance.
