US Savings Bonds-Probate and Ownership

[mudpie]

What is the name of your state? New Jersey

Hi all,

My aunt died recently and left me some US Savings bonds. The bonds have joint ownership-my name and hers.

The attorney assigned to the estate, told me that I am liable for inheritance taxes.

I tend to disagree. According to the federal government, US Savings bonds held in joint ownership become the sole property of the survivor upon the death of either party.
Therefore, not part of the. So if there is not a dispersement from an estate, then there is no cause for an inheritance nor a tax.

What are your thoughts?

 

[Dandy Don]

Lawyer's comment to you may be made out of ignorance (he may not actually know what he is talking about) or he may be innocently misguided. You need to ask him to cite what specific law requires you to pay inheritance taxes, and if he can't do it he is obviously BS'ing you big time.

The bonds pass directly to you the same moment the death occurred under the concept of right of survivorship. If you have not filed a claim form to get this money, you need to visit the website www.savingsbonds.gov (and click on the Individual/Personal Investor section) to get the number at the Treasury Department to file a claim, or ask any local federal savings bank in your area that sells savings bonds where you can get the form from.

What is the value of the bonds? There is a federal income tax exemption of $2 million dollars so you for sure won't have to pay federal income taxes. You will need to consult with a local CPA or tax accountant to find out if any state taxes would be due.

DANDY DON IN OKLAHOMA ([email protected])

 

[anteater]

What is the name of your state? New Jersey

Hi all,

My aunt died recently and left me some US Savings bonds. The bonds have joint ownership-my name and hers.

The attorney assigned to the estate, told me that I am liable for inheritance taxes.

I tend to disagree. According to the federal government, US Savings bonds held in joint ownership become the sole property of the survivor upon the death of either party.
Therefore, not part of the. So if there is not a dispersement from an estate, then there is no cause for an inheritance nor a tax.

What are your thoughts?

How an asset transfers to a beneficiary - whether through the probate estate or joint ownership - does not matter when it comes to New Jersey inheritance tax. (Or federal estate tax, for that matter.) In fact, New Jersey inheritance tax law presumes that jointly held assets were solely owned by the deceased (and, therefore, the entire amount subject to tax) unless the surviving owner can show evidence that the survivor's ownership interest was acquired by contributions that did not come from the deceased.

My memory is that, for Class D beneficiaries, assets worth less than $500 are exempt from NJ inheritance tax.

The $2 million exemption applies to federal estate tax.