Savings Bond Magic: How to Make the Taxes Disappear

If you leave your savings bonds to your heirs upon your death, your heirs will be taxed on the accumulated interest, leaving them less than 100 percent of the funds. But there is one very easy way to bypass this tax burden: Allow your attorney to add a codicil to your will, or an amendment to your living trust, that leaves your bonds to Lewis & Clark. (Note that you can’t name a charitable organization as co-owner or beneficiary on the face of your bonds.) This way we will receive 100 percent of their value—and your family can receive other assets that won’t trigger income taxes. It’s a simple transaction that allows you to create a brighter future for students. Contact Sharon Bosserman-Benson at (503) 768-7911 or sharon@lclark.edu to learn more.

How Long Will Your Bonds Earn Interest?
Series	Date of Issue	Number of Years Bonds Earn Interest
E	May 1941-November 1965 December 1965-June 1980	40 years 30 years
H	June 1952-January 1957 February 1957-December 1979	29 years, 8 months 30 years
Savings Notes	All issues	30 years
EE	All issues	30 years
I	All issues	30 years
HH	No longer issued as of Sept. 1, 2004	20 years

Source: www.savingsbonds.gov