Estate Planning 101

How to Transfer EE Bonds into a Trust

Explore the process of transferring EE Bonds into a trust with our detailed guide, ensuring you navigate this financial strategy with ease and confidence for future financial planning.
February 4, 2024

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Transferring assets into a trust is a common practice in estate planning, providing the benefit of asset protection and potential tax savings. While most people think of real estate or stocks when considering assets to put into a trust, other types of assets like EE Bonds can also be transferred into a trust. In this blog post, we will walk you through the steps to transfer EE Bonds into a trust.

Understanding EE Bonds

EE Bonds are a type of U.S. government savings bond that earn a fixed rate of interest until they mature or are cashed in. They are a reliable and low-risk investment, making them a valuable asset to consider including in your trust.

Why Transfer EE Bonds into a Trust

Transferring EE Bonds into a trust provides a range of benefits. For instance, it can protect the bonds from legal issues, provide tax benefits, and ensure the bonds are managed according to your wishes after your death. Furthermore, it avoids the need for probate, a potentially lengthy and expensive process.

Steps to Set Up a Trust for EE Bonds

  1. Choose the type of trust: Decide between a revocable trust, which can be changed or cancelled, and an irrevocable trust, which cannot be altered without the trustee’s permission.
  2. Select a trustee: Pick a person or entity you trust to manage the assets in the trust.
  3. Create the trust document: This legal document outlines the terms of the trust, including the beneficiaries and how the assets should be managed.
  4. Fund the trust: This involves moving the EE Bonds into the trust.

Process of Transferring EE Bonds into a Trust

  1. Inventory your EE Bonds: Make a list of all the EE Bonds you want to transfer into the trust.
  2. Visit the Treasury Department’s website: The website has a section where you can reissue your EE Bonds into the name of your trust.
  3. Complete the reissue application: Fill in the required details, including the trust’s details and the details of the EE Bonds.
  4. Submit the application: Send your application, along with the original EE Bonds and a certified copy of the trust agreement, to the Treasury Department.

Seeking Professional Help

The process of transferring EE Bonds into a trust can be intricate, involving several legal and financial considerations. It is advisable to consult with a lawyer or financial advisor to help you navigate the process, set up the trust, and manage any legal or financial issues that may arise.

Conclusion

In conclusion, transferring EE Bonds into a trust is a strategic move that can offer a host of benefits. With careful planning and professional advice, you can successfully incorporate EE Bonds into your estate planning strategy.