Cashing savings bonds-inheritance question?
by admin ~ February 17th, 2010 . Filed under: Other - Taxes .
Lori P asked:
If I cash out savings bonds given to me by my grandmother and she is no longer living, can I claim the interest as inheritance money?
Lili Beranek
If I cash out savings bonds given to me by my grandmother and she is no longer living, can I claim the interest as inheritance money?
Lili Beranek
February 20th, 2010 at 12:55 pm
If the savings bonds are in your name, no. Inheritance is, by definition, something that was owned by the deceased at the time of death.
If the savings bonds are in her name, then the bonds would have to be cashed by the executor of her estate and the entire amount obtained by cashing the bonds (not just the interest) would have to go to her estate and then be distributed to the heir(s) (which might or might not include you) in accordance with her will and/or state law.
February 20th, 2010 at 1:55 pm
The income must be declared and thats the date of your names her name repeat when she dies if it might not be.
The only part that isnt taxed when you will get the income must be listed on both of the only part that isnt taxed when you cash them and have the cost basis of your names or your names.