Savings bonds are valuable assets which are usually purchased as a part of a good investment or retirement plan. The bonds are issued within the name of the purchaser, but can you transfer them into another person’s name? If so, how is the process completed? They are questions that are frequently asked by savings bondholders. If you’re wondering how this method is accomplished you’re within the right place. Here is all you need to know about the transfer of savings bonds.
What is a savings bond?
A US Savings Bond is really a debt security that the United States Department of the Treasury issues to an investor. The investment helps the federal government to borrow more efficiently. These are safe investments which are backed by the credit of the us government and they deliver a return around the investment as the bond reaches maturity.
Can you transfer a savings bond into another person’s name?
According to TerrySavage.com, savings bonds may be transferred into the name of some other person if you own the bond. The answer to the question is yes, but there's a caveat that is attached. The savings bond should be in your name. They are yours to do with what you wish. You may request a proper change of title to change the bonds into the names of other persons. When the bonds are transferred as a gift and you completely remove your name from the bonds, you are responsible for paying taxes on all the accrued interest of the bonds.
Reasons for transferring savings bond
There are several reasons why you might wish to transfer a savings bond to a person else. One of the main reasons is for gift giving. Parents, grandparents, aunts, or uncles can provide their children savings bonds as a gift, or transfer ownership to a godchild, grandchild, niece, nephew, etc. Some owners may transfer the bonds to a newly married couple, but the major reason for transfer is for gift giving.
How the process pf transferring a saving bond to a different person is done
Zacks explains the process of transferring a savings bond in to the name of another person. Every US Savings bond issued bears the specific owner or owners in publications on the bond. Only the owner with his or her name appearing around the bond may cash in or transfer the bond. The first step in the process is to develop a reissue request. This form is completed and sent to the US Treasury along with the bond. You'll find the form online at the official US Treasury website. If you have no way to download the shape you may also contact the US Treasury and get them to mail the Request to Reissue Usa Savings Bonds.
Complete the form and formal processing
You may complete the shape online. Print out a hard copy. Don't sign the document yet. You have to sign in from of a bank officer. You'll be required to provide identification during the time of the signing. The person listed on the form may transfer the bond and to have his or her name removed from it. If there are two persons listed as co-owners around the bond, only one person is necessary to sign. The remaining person’s name will remain on the bond. Both parties must sign combined with the person having his or her name added to have their names removed. The form, along with the savings bond, must then be mailed towards the US Department of Treasury to complete the process of transferring the bond.
Special rules
Any owner may transfer his or her ownership rights to the bond, but may not speak for the other party for series EE savings bonds. Series I savings bonds qualify to have one of the owner names change in the event of divorce or death of the spouse. The appropriate completed and authenticated form combined with the bond must be sent via registered mail to the address that is provided on the form. After you complete the process, you will receive a notification via an electronic account at the TreasuryDirect.gov website. You won't receive a paper bond back in the department.
How to set up an electronic account using the US Treasury Department
There are three simple steps involved with setting up an account using the US Treasury Department. Go to this webpage to produce the account. First, choose the account type that you desire to spread out. Next, have personal information on hand to provide your tax ID number. This really is either your social security number or your EIN. You will also need a valid e-mail address as well as your bank account and routing number. You will then proceed forward to create a password. This should be a secure password that you don’t tell anyone else for security purposes. You will also be promoted to complete your password reminder. You will also choose a personalized image, a caption, and security questions. After you’ve completed these 3 steps your account with the US Treasury Department is going to be set up.
Final thoughts
It’s not difficult to transfer savings bonds to a different person, but there are a few specific steps that you must take to do so. You must download, print, and complete the proper form from the official US Treasury Department website and sign it before a bank official before sending it in through registered mail. The brand new owner sets up an electronic account at the Treasury Department website. Once a merchant account has been set up it can be used to determine the status of a newly transferred savings bond. Customers will also have the option of purchasing other savings bonds directly using your account on the official US Treasury website.
