Tags
Death Certificate, decedent, estate account, Executor, Letter of Authority, Redeem Savings Bonds, Redemption, Request for Payment Form, Savings Bonds, Series E Savings Bonds
As executor, redeeming the series E savings bonds of the decedent involved a little effort. As noted in the article In the Interim, I created a task list to organize the estate. One such task was finding the savings bonds the decedent listed in the will. So, in early December 2012, while cleaning out the decedent’s office, I found an envelope that contained thirteen series E savings bonds; exactly the amount of savings bonds the decedent listed.
After finding the savings bonds, I immediately called the attorney and asked, “Does the probate court have any rules on redeeming series E savings bonds; I found thirteen of them?”
The attorney replied, “No, you can redeem the savings bonds when you want. However, make sure you copy each savings bond before you redeem them. This way, if anyone asks about them, you can refer to your copies.”
So, that night, I made a copy of each savings bond because I planned on redeeming them the next day.
Redeeming the Series E Savings Bonds
The following day I called the bank, which held the estate account, to find out if they redeemed series E savings bonds, and if so, find out about the process. The bank representative confirmed that they will redeem savings bonds and that I would need the following documents:
- The thirteen savings bonds.
- A copy of the death certificate.
- The letter of authority to act as executor.
After the call, I drove to the bank with the needed documents. As I walked into the bank, the bank manager, knowing why I was there, brought me to a banking window and left me with a teller. The teller immediately escorted me to a conference room to explain the following redemption process:
- First, I had to sign the request for payment form on the back of each savings bond indicating that I am the executor for the estate of the deceased.
- After signing the savings bonds, I would bring them back to the banking window.
- Finally, after reviewing the savings bonds, the teller would redeem the savings bonds and transfer the total amount into the estate account.
So, after signing the form on each savings bond, I brought the savings bonds back to the banking window. The teller immediately checked the signatures and began the redeeming process. After about a half hour, the teller handed me a receipt of the amount transferred to the estate account. With the transfer completed, so was the task of redeeming the series E savings bonds.
A Taxing Transaction
While watching the teller redeem the savings bonds, I knew the transaction added to the tax bill for the estate. Since all the savings bonds reached maturity, a lot of interest income accrued. Consequently, having to redeem the series E savings bonds, the tax expense of a neglected estate plan keeps growing.
Was this article helpful? Is the process to redeem a series E savings bond clear to you? Share your comments or questions in the comment box below.
Recommended Reading
The Executor’s Guide– The Executor’s Guide from Nolo has information about how an executor can handle U.S. Savings Bonds other than redeeming them.
You mentioned letter of authority, would this be the same as power or attorney ?
Hi Jesse,
The Letter of Authority refers to the letter the probate court issues to the executor of an estate giving the executor authority to begin settling the estate. The letter is very important to the executor since the executor will have to use it as proof that they are in fact authorized to represent the deceased in many transactions like redeeming savings bonds.
I hope this helps.
Robert
I have a similar situation. My mother passed 20yes ago & after my sister passed recently, I bought her house, while cleaning out boxes I found a letter from my mother to my sister, it contained 2 series E bonds. What do I need to do to cash them in. The bonds only have my mothers name printed on them.
Hi Roderick,
I am sorry for the late response, but there were server problems with this site. Anyway, back to your question. To redeem those bonds, you will have to redeem them through a probate process since your name was not on them and the owner passed away. This may not be so bad because many states have a small estate process which is like a quick probate process. A small estate is based on the value of the property that needs to go through probate. Since I don’t know where youu live or the amount of the bonds, I couldn’t tell you if you qualify for such a procedure. For example, in Massachusetts, you can set up a small estate if the property going through probate is less than $15,000.00. So, if the bonds are less than $15,000.00 in value, you can set up a small estate consisting of just the two bonds as the entire estate. You would have the bonds redeemed in around two weeks.
What you need to do is go on-line to the Department of Revenue for your state and see if there is a small estate procedure and what value qualifies for a small estate. If this seems overwhelming to you, contact an attorney that handles probate matters and they will direct you. Finally, if there is no rush, talk to someone in your bank where you have an account and see if they redeem savings bonds. If they do, ask them how to redeem savings bonds concerning your situation. They may give you specific directions for the state in which you live.
I hope these suggestions put you on the right track.
Good luck,
Robert
Assume the Series E nomenclature is all inclusive and also relates to Series EE Bonds
Hi Charles,
I am not sure what you are trying to get at with your comment. The article in question is about my experience in redeeming Series E savings bonds.
Thank you for your comment.
Robert