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Savings bonds

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geochemgal

Guest
Missing Savings Bonds

I reside in Alabama, but my question may pertain to Florida...
My grandmother purchased savings bonds for her grandchildren. I had seen them up until right before she passed away. The savings bonds were in denominations ranging from $1000 to $10,000 at face value (purchased in the late 1960's). The savings bonds were issued as either her name "and" the grandchild name, or her name "or" the grandchild name.
Believing that her word would be honored, and since her grandchildren's names were also on the savings bonds, she did not mention them in her will.
My uncle was the executor of her estate. After my grandmother's passing at her home in Florida, he phoned my mother on one occasion and mentioned that he had the bonds. Shortly thereafter, 2 of my sisters recieved a check from this uncle for $2000., and no mention of the bonds have ever been made. This uncle has now "divorced" himself from the rest of the family.
No one in my family nor another cousin has recieved the bonds. Could my uncle have been entitled--as executor of my grandmother's estate -- to cash those bonds and keep the money?
How can I find out about the disposition of these savings bonds? What could I do about finding out about other assets my grandmother had that are missing?
I do have the support of the rest of my family.
Thank you for your advise,
ashley

[Edited by geochemgal on 01-24-2001 at 01:47 PM]
 


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advisor10

Guest
(01-24-2001)


DEAR ASHLEY:

The government agency that handles savings bonds is called THE BUREAU OF PUBLIC DEBT. For instructions on what to do when the savings bond owner is deceased, you can go to their website at "www.savingsbond.gov".

Click on TABLE OF CONTENTS
Scroll down the page until you get to
"EE/E BONDS" (I think this is the most common type of bond)
"REPLACING/CHANGING"
Click on the blue link "OWNER DECEASED"
A page will come up with helpful information about WHAT TO DO WHEN A BOND OWNER HAS DIED.

You just have to kind of use the "SEARCH" function at the website or look at the FAQ (FREQUENTLY ASKED QUESTIONS SECTION) to find the particular topics you are interested in to have your questions answered.

It's a good thing that you had seen the bonds and remembered that there was more than one person's name on them. A lot will depend on how they were made out--if it was just one person's name (your grandmother), then the executor can cash them in and distribute them according to the terms of the will. BUT IF ANOTHER PERSON'S NAME WAS ON THE BONDS AS A CO-OWNER/BENEFICIARY WHO IS STILL ALIVE, then he technically was NOT SUPPOSED TO BE ABLE TO CASH THEM OR KEEP THE MONEY (since it belonged to someone else) and then the executor was required to fill out a form and submit it to the BPD to have the bonds reissued in the name of the beneficiary.

There is a small chance that he may have cashed the bonds in at a local bank, since all he has to present is the court papers that authorize him as executor. If the bank clerk sometimes is not aware of the rule about having the bond reissued if more than one person's name is on it, she may have gone ahead and cashed them in when really she was supposed to not do it and tell him about the form he must submit to the BPD. I'm guessing that he is just sitting on the bonds (if he found them) because he probably doesn't know what to do about them. If he has already cashed them, I think that it is possible that the BPD may be responsible for either issuing you replacement bonds or you might have to file a suit in court to get the money back from him.

Technically, the executor is the one who is supposed to submit the form to the BPD to inquire about the grandmother's bonds status (whether or not they have been cashed, whose names are on them, etc.). So I would suggest you contact the uncle and tell him about the website that will tell him the forms (which he can print out if he has a computer) and the mailing address in Parkersburg, WV 26106-1328. That way you could find out what he already knows about the bonds and he might appreciate you informing him of this fact.

However, since you mention he has "divorced himself" from the rest of the family, this could be an indication that he is jealous or greedy or not really willing to cooperate with anyone else who might have a financial interest. THEREFORE, anyone (any of the grandchildren) whose names might have been shown on the bond has a right to also contact the BPD to ask about the status of these bonds, so you can submit the form yourself. You must also provide the death certificate that has your grandmother's Social Security Number and date of death on it. You'll see all the instructions at the website--it does take a little bit of time to read through and understand everything, but it looks to be a very simple process.

What reason do you have to believe that there may be other assets are that may be missing? If the estate has been closed, you really do need to go to the county courthouse to look at any and all financial documents that were filed along with the will, just to see how the affairs of the estate were accounted for, and it might show how the personal property/items were distributed (if this is perhaps what you were thinking about). There is a website http://www.missingassets.com that can do a nationwide search for insurance policies for an $8 fee.

Somehow I get the feeling you are going to be VERY LUCKY in finding out good news about these bonds, as the denominations are certainly large enough to be concerned about.

SINCERELY,

[email protected]



 
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geochemgal

Guest
Thank you very much, I appreciate your advise.
A thought: Is there a statute of limitations in addressing further legal action if my uncle did, in fact cash these bonds after my grandmother's passing?
Sadly, my uncle is far from cooperative in this situation. Depending upon the response from both missingassets.com and the BPD I may have to pursue further action.
Best Regards,
ash
 
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geochemgal

Guest
I know about what is "missing" because I stayed with my grandmother for 3 - 4 months a year prior to her passing. I will do as you suggest! Thank you, ash
 
A

advisor10

Guest
(01-25-2001)

You would have to consult with an Alabama attorney to get the precise answer to your question, since I don't live there. However, I wouldn't do that until a much later date until you've found out the other information first. Generally speaking, you don't have to worry about a statute of limitations.

You forgot to mention how long ago that your grandmother died.

If you find out from the BPD that he had cashed the bonds, if I were you I would have an accountant or attorney try to subpoena his bank or checking account records history to see if perhaps they can prove that he may have deposited them there, plus if you get copies of front and back of the cashed savings bonds from BPD that might be enough to confront him with proof that he used them (signature and name of bank endorsement on the back). If the attorney merely "threatens" him with a lawsuit and shows him the proof that you already have, that may be just enough to scare him into repaying you the money without having to go through the expense of a lawsuit.

Even though the bonds were not specifically mentioned in the will, if you have a friend or relative in Florida who could go to the county courthouse to look at the probate file, then it would be a good idea to do so. There may be something mentioned about how the bonds were disposed (if they were included as a part of the total assets added up) in the paperwork there that might give you a clue as to how they were handled.

SINCERELY,

[email protected]
 

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