US Savings Bonds — When Should You Reissue Your Bonds?

If you are the owner of one or more US savings bonds, it’s advisable to review your bonds periodically. Reviewing your savings bonds is important to help you understand how your bonds work, when they can most effectively be incorporated into your financial plans, and if your bonds need to be reissued or not.

Reissuing a savings bond ensures that an owner receives a new bond with the same issue date, and therefore the same value. Knowing whether or not reissuing a bond is necessary can be useful in making the process more manageable.

When to Reissue Your Savings Bonds

Most often, savings bonds are reissued when there is a major change to information related to the initial issuing of the bond. Examples of situations where a bond may need to be reissued include:

• When a major error on the bond must be corrected.
• When complying with a court-ordered change of a living owner, such as if the court has appointed a guardian, conservator, or similar representative for the estate of a living owner.
• When changing the owner, co-owner, or beneficiary of a bond, as regulations allow.

Additionally, it should be noted that reissued bonds are electronic only, not new paper bonds.

When Not to Reissue Your Savings Bonds

In other cases, it may not be necessary to reissue your savings bonds. Examples of situations where reissuing a bond is not necessary include:

• If you married, divorced, or changed your name. In this situation, make sure that you sign both your name as it appears on the bond and your current name when you cash in the bond. Make sure you also state your reason for the name change.
• If your name has a minor typo on the bond. In this situation, simply sign your name with the correct spelling when you cash in the bond.
• If you moved and have a new address. In this situation, you do not need to make any changes, as the address on the bond was just to mail it to you. The address listed on the bond does not affect ownership.
• If the bond has the incorrect Social Security number. In this situation, the bond will not be reissued; however, if you need to inquire about the bond, you will need to provide the correct number. This is because the US Treasury searches their database by Social Security number.

Income Taxes on Bonds

If you were the original owner of a bond and it was reissued to someone else, you no longer own it. Additionally, if you have not been paying tax on the bond’s interest every year, you now owe tax on all the interest the bond earned while you were the owner. You will not owe tax on any interest the bond earns for the new owner.

Conversely, if you are the new owner of a bond, you will owe tax on interest the bond earns from the time you became the owner. You will not owe tax on interest earned before you owned the bond.

Questions?

The attorneys at Pyfer Reese are here to advise and assist you regarding your legal needs. Contact us at 717-299-7342 to schedule a convenient appointment at our Lancaster, Willow Street, or Ephrata Office.

This correspondence/blog should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only and you are urged to consult a lawyer concerning your own situation and legal questions.