If you have Series I bonds, you should check to see that you have named a beneficiary.  It doesn’t take long to do, and you will immediately get a confirmation of the change.  This simple step will ensure the bonds transfer as you intend when you die.

From treasurydirect.gov.:

To add a secondary owner or beneficiary to your securities registered in single ownership form:

1. Log into your primary TreasuryDirect® account.
2. Click the ManageDirect tab at the top of the page.
3. Under the heading Manage My Securities click "Edit" a registration.
4. On the Edit Security Registration page, choose the security type you want to edit and click "Submit".
5. On the Summary page, choose the security or securities you wish to edit and click "Select" (you may edit up to 50 securities to the same registration).
6. On the Detail page, select the registration containing the secondary owner or beneficiary you desire from the drop-down box. (If you've never created the registration, you can do so by clicking "Add New Registration". Once you've created the new registration, the system will bring you back to the Detail page where you'll find the new registration listed in the drop-down box.) Note: Entity accounts may only have one registration. All securities in an entity account carry a registration identical to the entity account name.

Once you've selected the desired registration, click "Submit" to complete the change in registration for the security.

Please note that once you have created a new registration you must now select that registration for the bonds from the dropdown box at the bottom of the screen.   The new registration will likely read “Your Name POD Beneficiary Name,” where POD stands for Payable on Death.  When you die, ownership is transferred to the beneficiary.

If you purchased your I bonds in the name of an entity (such as a Revocable` or Living Trust) you will not be able to name a beneficiary using these directions.  The bonds will transfer per the trust document.

Up next: how to change your Series I paper bonds to electronic bonds

Disclaimers:

This is for educational purposes only. To learn more about the topics mentioned and if they are suitable for you, consult an appropriate professional. Tax laws can change at any time.

Any information provided in this presentation has been prepared from sources believed to be reliable, but is not guaranteed and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for information purposes only and does not constitute a recommendation.

Arthur Stein and Arthur Stein Financial, LLC are not authorized to give legal or tax advice.  For information on your specific situation, please consult your tax advisor regarding any tax implications and your attorney for legal implications. As required by the US Treasury Regulations, you should be aware that this presentation is not intended to be used and it cannot be used for the purposes of avoiding penalties under federal tax laws.

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