Savings Bonds – A Hidden Gem in Your Estate?

Over $9 billion worth of savings bonds and $200 million in registered Treasury securities have stopped earning interest, but haven't been cashed in by the owners,according to treasurydirect.com. Why is so much money simply in limbo? Well, the truth is that when many people hear the term “savings bonds” they conjure an image of their grandparent giving them a piece of paper for a nominal amount of money and being told to “hold onto this since it may be valuable someday.” Savings bonds are simply not considered “sexy” investments and therefore get tossed aside and forgotten by the purchasers and/or the heirs. Many clients who purchased savings bonds decades ago, may have even forgotten that they purchased the bonds. Understanding How Savings Bonds are Passed On Savings bonds are “nonprobate” assets, which means they are not inherited through the provisions of a Last Will and Testament. In fact, savings bonds are more...