I am pleased to report that Treasury Direct has honored my request (via "transact" rights in my account) as a secondary owner, to redeem the I bond inherited from the deceased primary owner. I had reported his death to Treasury Direct 4 days earlier.Perhaps I'm reading this incorrectly and the intention is not to provide transact rights after the primary owner passes, but it is my understanding that when the primary owner dies, the transact rights of the secondary owner are terminated. You still have to provide a death certificate and go through the redemption or transfer process with TD. I guess the secondary owner could, in theory, redeem the bonds after the primary owner passes away but I think that would open up a legal can of worms. Not sure how long (if ever) it takes TD to know when the primary owner has passed.
I’ve decided I’m going to change all my I-bonds to “WITH” and assign “transact” rights. Once I’ve passed, he can simply redeem them or have them transferred into his own TD account. He could also do that at any time but I trust him.
So, for the time being my plan, as initially stated in this post, is to "change all my I-bonds to “WITH” and assign “transact” rights.
Lots of good information at the link below directly from the Code of Federal Regulations. For those concerned about exposure to debts of the secondary owner, judgments, levys against him or her:
https://www.customsmobile.com/regulatio ... tion363.22
IRS levy:
(2) Against a secondary owner, if the secondary owner has the right to conduct transactions in a security at the date and time the notice of levy is delivered to Fiscal Service
Whew! Glad that is settled, now I just have to wait 6 months before the other two bonds are transferred into my name.
Statistics: Posted by nonnie — Wed May 29, 2024 2:00 am — Replies 6943 — Views 1633303