With a personal $10K annual purchase limit on IBonds some of us were looking at various so-called other title vehicles for holding those e-ibonds. But we have noticed the exit strategy or means to redeem them is not the neatest. In fact a recent correspondence with Treasury had an email reply to a different email address than that provided to it and was not responsive as of this date. In addition to individual accounts which seems clear on redemption there is proprietorship (no beneficiaries allowed), trusts, and corporate forms.
The first hurdle is a sole proprietorship…how to redeem. Treasury provides the following in various places,
“(Electronic bonds: If the person who died has an online TreasuryDirect account, contact the Bureau of Fiscal Service directly. We will put a hold on the account and give specific instructions for the situation.)”
Specific instructions…what does that mean? A hold or freeze may not be of help either.
Q. Does anyone have any info/experience on how to redeem sole proprietorship IBonds of deceased when Treasury will not allow beneficiaries?
We are also looking at putting IBonds into revocable trusts…any experience there?
One in our group was thinking about trying to open a TD account, purchase a small amount and then redeem…however one cannot redeem for a year!
The bottomline in all of this is the ability of a married couple to significantly increase the individual cap on purchases to approximately $50k+ plus $5k tax refund….given the current ibond rate and expected much higher rate on November 1st…this is more than petty cash time!