Inherited US savings bonds questions - taxes?
by admin ~ April 18th, 2009 . Filed under: Personal Finance .
Nancy H asked:
Series I bonds from mother’s estate were jointly owned by mother and a child. Three of the five children’s bonds remain. (The other two batches were redeemed to help finance a new home for mother.) Now we need to distribute those bonds and other funds equally to the five children. Since the bonds have different accumulated interest (ranging from $2000-$5000) and everyone’s tax rate is different - what is the best way to fairly distribute these bonds? The I Bonds are now paying almost 8%!! OR, can the bonds be cashed and taxable to the estate? OR, is there some way to do this that I haven’t considered. THANKS in advance for any help!!!!
Mack Mozie
Series I bonds from mother’s estate were jointly owned by mother and a child. Three of the five children’s bonds remain. (The other two batches were redeemed to help finance a new home for mother.) Now we need to distribute those bonds and other funds equally to the five children. Since the bonds have different accumulated interest (ranging from $2000-$5000) and everyone’s tax rate is different - what is the best way to fairly distribute these bonds? The I Bonds are now paying almost 8%!! OR, can the bonds be cashed and taxable to the estate? OR, is there some way to do this that I haven’t considered. THANKS in advance for any help!!!!
Mack Mozie
April 20th, 2009 at 9:47 pm
The date of death that means any interest accrued up to anyone.