The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Converting EE Bonds to HH Bonds||Date: 11/19/1998 6:54 PM|
|Author: TMFTaxes||Number: 6386 of 122319|
[[By the way, do the transfer of EE Bonds upon death
behave analogously to the transfer of stocks in that the transferee receives a step-up cost basis on
the EE Bond?]]
Nope. Nothing like that at all.
If you die with unreported income with your EE bonds, the full value of the bonds will be included in your estate.
Your executor will have the option of including the previous unreported interest income on your final tax return.
If that is not elected, then the recipient will be required to report the previously unreported income.
EE bond income is considered Income with Respect to a Decedent, and will be taxed both at the estate level and also at the beneficiary level.
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