In general, interest earned from savings bonds is subject to Federal income tax, but not to State or local taxes. Start with All About Taxes on Savings Bonds to be connected to full discussions and FAQ's. Because you are likely to earn less and are therefore be subject to lower income tax rates after you have retired, you may want to consider waiting until then to cash your Series EE Bonds. For other information about an investment strategy that involves Series EE and Series HH bonds, go to All About Savings Bonds for Retirement . If a co-owner or beneficiary is named on the bond, then that person is the new owner.
New owners can either redeem the bond or have it reissued in their name.
If there is no co-owner or beneficiary, then the bond becomes a part of the deceased person's estate. The court-appointed representative can cash those bonds. When a Bond Owner Has Died . The form is available from the Bureau of the Public Debt forms ordering system . The form is available from the Bureau of Public Debt forms ordering system .