What is the Process for Transferring Savings Bonds to Another Person?

If you have invested in savings bonds as a part of your retirement or investment plan, you may have wondered whether or not it is possible to transfer them into someone else’s name. The bonds are typically issued in the name of the purchaser, but the process of transferring them is not complicated. If you’re curious about how this process works, you’ve come to the right place. In this article, we will provide you with everything you need to know about transferring savings bonds.

What is a savings bond?

Investors can purchase a US Savings Bond, which is a type of debt security issued by the United States Department of the Treasury. This investment provides a means for the US government to borrow funds more effectively. With the backing of the United States government’s credit, these bonds are considered safe investments that offer a return on investment when they reach maturity.

Can you transfer a savings bond into another person’s name?

As per TerrySavage.com, it is possible to transfer savings bonds to another person’s name if you are the bond owner. However, there is a condition attached to it. The savings bond should be in your name, and you have complete control over it. You can request a formal change of title to transfer the bonds to someone else’s name. In case you decide to gift the bonds and remove your name entirely, you will be liable to pay taxes on the interest earned from the bonds.

Reasons for transferring savings bond

If you’re looking to give someone a savings bond, there are a few reasons why you might want to transfer it to another person. One of the most common reasons is for gift-giving purposes. Parents, grandparents, aunts, and uncles may choose to give savings bonds as gifts to their children or transfer ownership to a godchild, grandchild, niece, nephew, or other family members. Newly married couples may also receive transferred bonds, but ultimately, the primary reason for transferring ownership is to give a meaningful gift.

How the process pf transferring a saving bond to another person is done

If you want to transfer a savings bond to someone else, Zacks recommends following a process that involves completing a reissue request form. Every savings bond that is issued has the name of the owner or owners printed on it. And only the owner whose name appears on the bond is allowed to cash in or transfer the bond. To begin the process of transferring the bond, you need to fill out the reissue request form and send it to the US Treasury along with the bond. You can find the form on the official US Treasury website. If you are unable to download the form, you can contact the US Treasury and request that they mail you the Request to Reissue United States Savings Bonds form.

Complete the form and formal processing

To complete the form for transferring bond ownership, start by filling it out online and then printing a hard copy. Remember not to sign the document just yet. To finalize the transfer, you’ll need to sign it in front of a bank officer and provide identification at that time. If there are two co-owners listed on the bond, only one needs to sign, and the other person’s name will remain on the bond. However, if someone wants their name removed from the bond, both parties must sign along with the new owner. Once signed, the form and savings bond should be mailed to the US Department of Treasury to complete the transfer process.

Special rules

It is possible for an owner to transfer their ownership rights to a bond, but it is important to note that they cannot speak on behalf of the other party in the case of Series EE savings bonds. However, when it comes to Series I savings bonds, one of the owner’s names can be changed in the event of a divorce or the passing of a spouse. To make this change, a completed and authenticated form must be submitted along with the bond via registered mail to the address provided on the form. Once the process is complete, you will receive an electronic notification through your TreasuryDirect.gov account. It is important to note that you will not receive a paper bond back from the department.

How to set up an electronic account with the US Treasury Department

Setting up an account with the US Treasury Department involves three simple steps. Firstly, visit the designated webpage and select the account type you wish to open. Secondly, gather personal information such as your tax ID number (either your social security number or EIN), a valid email address, and your bank account and routing number. Create a secure password that you don’t share with anyone else and complete a password reminder. Additionally, select a personalized image, a caption, and security questions. Once you’ve completed these steps, your account with the US Treasury Department will be set up.

Final thoughts

Transferring savings bonds to another person is a straightforward process, but there are certain steps that you must follow. Firstly, you need to download and print the appropriate form from the official US Treasury Department website. After completing the form, you must sign it in front of a bank official and mail it through registered mail. The new owner must then create an electronic account on the Treasury Department website, which can be used to track the status of the newly transferred savings bond. In addition, account holders have the option of purchasing other savings bonds directly through their account on the official US Treasury website.

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MBS Staff
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