DISCLAIMER

 

This newsletter is intended for informational purposes only, and is not intended to be used nor should it be relied on as legal advice.

      Do you own any Series E or Series EE United States Savings Bonds?  Many citizens faithfully purchased these bonds on a regular basis over the years, and have never redeemed them.

 

      You may first be surprised to know how much these bonds are worth today, when all the interest that has accumulated over the years has been calculated.  For example, a $100 Series E bond purchased for $75 in June 1970 has a current value of $552.00 -- or more than five times its face value!

 

      However, you may also be surprised to learn that this same bond’s value was capped at the same $552.00 in June 2000, and will never increase.  Under federal law savings bonds stop earning interest once they reach a final maturity date.  With inflation, that means that these bonds are actually declining in real value.

     

      If you would like to discuss estate planning ideas regarding any government bonds that you are currently holding, please give us a call.  Since you or your family will likely have to pay an income tax on all the deferred interest when the bonds are redeemed, as well as an estate and/or inheritance tax on any bonds that are held until death, in many cases a tax-exempt charity may be the ideal recipient for such bonds.