Tags
1099-INT, Beneficiary, decedent, estate, Executor, Expenses, Final Return, Formal Probate Process, Interest Income, IRS, IRS Publication 550, Redeem Savings Bonds, Savings Bond Registration, Savings Bonds, Series E Savings Bonds, Series EE Savings Bonds, Series I Savings Bonds
When redeeming savings bonds that are the property of the estate, reporting rules from the IRS can make the transaction a little complicated. As depicted in the article Redeeming Series E Savings Bonds of the Decedent, redeeming savings bonds isn’t a difficult process. However, reporting the interest income on the savings bonds are where the complexities exist. Moreover, since most common executors are unaware of these IRS reporting rules, implications may result.
Note: Savings bonds in this article refer to series E, series EE, and series I savings bonds. Reporting rules from the IRS for these three series of savings bonds are similar. Also, savings bonds become property of the estate in one of the following ways:
- The savings bonds registration is only in the name of the decedent.
- The co-owner or beneficiary pre-deceased the owner.
