Can I Convert U.S. Saving Bonds to a T-Bill?

Can I Convert U.S. Saving Bonds to a T-Bill? ...

Question

I have several US Saving Bonds made out to myself or my son. My questions are:

1. Do I have to cash the bonds in to another U.S. Treasury item, such as a T-Bill or T-Note, or convert them to a T-Bill or T-Note?

2. How can I change my son's name without having to pay in savings bonds?

Answer

According to James R. Ferguson III, CFP, who is the managing partner and co-founder of Roan Capital Partners, converting US Savings Bonds is possible, depending on when the original bonds were issued and how the reader defines cashing the bonds in. The type of bonds purchased in conjunction with the purpose of the bonds long-term, are likely to be taxable events, according to Ferguson.

Ferguson states that changing the name on bonds is possible without having to cash in them. There will be forms and paperwork depending on the terms and conditions, according to the link.

Have questions? Get answers!

You may also like: