savings bonds
 

My parents have a LOT of savings bonds and were wanting to disperse some of them to the grandkids, etc and looking for a good way to do that. They all live in different states so she cannot be there to cash them with them in person and I found out about treasurydirect.gov Has anybody used this before? I think you can upload them to this site and them transfer them to somebody else? Anybody know how this site works or can you point me in another direction?

Also, it is my understanding that the original owner of the savings bond is required to pay the taxes on them no matter who cashes them?

Hold onto those old bonds with the good rates from the late 90’s. Enter the bond type info into the treasury’s calculator and see what rate they are paying. Some are still paying 9%+ for another 10 years. Only the person who’s name is on the bond can cash it and they pay taxes when distributed. A full service bank can easily cash them if presented by the named holder. Current rates aren’t worth the paperwork.

These are all matured and then 10+ years, so not collecting anything on them anymore.. Just trying to find a way so that she can transfer them to Gkids out of state...

Cash them all in, create accounts in kids' names on Vanguard, transfer money to those accounts. That also makes the money harder for the kids to get at the money until later.

Cash them out. Buy I bonds with the money in the kids names.

Perfect. Even better than my suggestion.

The purchase of I Bonds are capped at $10,000/cal. yr.

More to the story. Financial guy said not to cash them all in at once, would be way too big of a tax hit.. (we are talking a few hundred thousand dollars here..) They just want to be able to send them xmas/bday monies etc... Parents are 88 and dont get out anymore, so no going to the bank etc.. aand of course, time is against them, They want to get this all set up so when the estate settles, the executor (me) can keep these small gifts going for several more years. That why we are looking to use the TD option...

Have them open a TD Ameritrade account in their individual names. Sell the bonds and buy Apple, Tesla and/or Amazon.