Distribution of a Savings Bond After Death

A savings bond is typically cashed only to the person whose name is on it, but in the event of a person's death before the savings bond is cashed, a few different rules may apply. Depending on the situation at hand, the process to cash the savings bond may vary. 

If there is only one person's name on the savings bond, the savings bond becomes the property of the estate. If there are two people named on the bond and both are deceased, it becomes the property of the estate of the person who died last. If there are two people named on the bond and only one dies, the survivor has a few options: 1) She can do nothing with the bond. 2) She can cash the bond in. To do so, she will need to provide identification as proof of her right to do so and provide a copy of the deceased co-owner's death certificate. 3) She can have the bond reissued in her name only or with another person's name. 

If the savings bond becomes the property of an estate for which there is no will or executor of the will, and the bond is worth less than $100,000, a surviving relative may fill out a form to cash the bond. The relative will need to provide proper identification and a copy of the death certificate and may also want to provide proof of his or her relationship to the deceased.

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