Dealing with paper EE bonds with elderly parent

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markcoop
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Dealing with paper EE bonds with elderly parent

Post by markcoop » Tue Sep 04, 2018 11:56 am

My in-laws have a whole bunch of gov't savings bonds (mostly EE but some I) that they bought over the years. They just started to come due. I help them manage their money. So far they have gone to the bank to cash them in once a month (I hold all the bonds and give them the bonds for that month). Is there an easier way to do this? I do have POA at her bank, but the bank said I cannot cash in the bonds for her (even though it would go into her bank account). I am concerned they are going to misplace or lose the ones I give them at some point.

Thanks for any input
Mark

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HueyLD
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Re: Dealing with paper EE bonds with elderly parent

Post by HueyLD » Tue Sep 04, 2018 12:06 pm

Is there a beneficiary for the bonds?

Broken Man 1999
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Re: Dealing with paper EE bonds with elderly parent

Post by Broken Man 1999 » Tue Sep 04, 2018 12:09 pm

Maybe go with them when the bonds are cashed?

Broken Man 1999
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markcoop
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Re: Dealing with paper EE bonds with elderly parent

Post by markcoop » Tue Sep 04, 2018 12:14 pm

I live a couple of hours away. We do get down there every month or so, but hard to coordinate with bank.
Mark

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HueyLD
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Re: Dealing with paper EE bonds with elderly parent

Post by HueyLD » Tue Sep 04, 2018 12:18 pm

"You can cash paper EE and E bonds at most local financial institutions. This is the easiest way to cash bonds and the quickest way to get access to your money.

Or, you can cash bonds by mailing them to Treasury Retail Securities Site, PO Box 214, Minneapolis, MN 55480"

https://www.treasurydirect.gov/indiv/re ... redeem.htm

"do I authorize an attorney-in-fact to redeem my bonds?

For instructions, please see FS Publication 0105 (download or order)."

Jill07
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Re: Dealing with paper EE bonds with elderly parent

Post by Jill07 » Tue Sep 04, 2018 12:55 pm

Why not cash 6 months worth at a time? Maybe you can accompany your MIL to the bank so the bonds do not get misplaced. You don't have to wait until the bond reaches final maturity to cash it out. Consider taxes too. MIL will get a 1099 for the tax year.

sport
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Re: Dealing with paper EE bonds with elderly parent

Post by sport » Tue Sep 04, 2018 12:59 pm

HueyLD wrote:
Tue Sep 04, 2018 12:18 pm
"You can cash paper EE and E bonds at most local financial institutions. This is the easiest way to cash bonds and the quickest way to get access to your money.

Or, you can cash bonds by mailing them to Treasury Retail Securities Site, PO Box 214, Minneapolis, MN 55480"

https://www.treasurydirect.gov/indiv/re ... redeem.htm

"do I authorize an attorney-in-fact to redeem my bonds?

For instructions, please see FS Publication 0105 (download or order)."
When HH bonds were discontinued, the banks were not allowed to cash them. I mailed them to the site shown above. They deposited the money into my checking account directly and sent me a 1099 the next January.

psteinx
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Re: Dealing with paper EE bonds with elderly parent

Post by psteinx » Tue Sep 04, 2018 1:14 pm

Jill07 wrote:
Tue Sep 04, 2018 12:55 pm
Why not cash 6 months worth at a time? Maybe you can accompany your MIL to the bank so the bonds do not get misplaced. You don't have to wait until the bond reaches final maturity to cash it out. Consider taxes too. MIL will get a 1099 for the tax year.
This is all good information. Depending on the in-laws' general financial situation, and the size of the bonds coming due, the urgency in cashing in bonds monthly versus at some other interval may not be that much. If it's $5K/month, and that's all they have to live on, that's one thing. But if it's $500/month, and they have other significant financial resources, and the proceeds will just go into a savings account at 0.25% interest or whatever, then the urgency is, well, not that urgent...

markcoop
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Re: Dealing with paper EE bonds with elderly parent

Post by markcoop » Tue Sep 04, 2018 1:52 pm

No dependency on the money to live. Bunching is certainly possible. In fact, I did bunch a couple of months already and I may accompany her to the bank at times too. However, I just think as parents get older and older, this is going to become a bigger concern. I think I need to look into the POA (or whatever it is called) for savings bonds.

I wish there was a way to tell the gov't to please deposit all matured bonds into a bank account.
Mark

MrsBDG
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Re: Dealing with paper EE bonds with elderly parent

Post by MrsBDG » Tue Sep 04, 2018 2:00 pm

Can you transition the paper bonds to a Treasury Direct account? That's what I did for my parents' bonds. They mature, then can be transferred to the bank account.

markcoop
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Re: Dealing with paper EE bonds with elderly parent

Post by markcoop » Tue Sep 04, 2018 2:04 pm

MrsBDG wrote:
Tue Sep 04, 2018 2:00 pm
Can you transition the paper bonds to a Treasury Direct account? That's what I did for my parents' bonds. They mature, then can be transferred to the bank account.
Is that hard to do? I have about a one inch thick envelope of bonds.
Mark

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FIREchief
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Re: Dealing with paper EE bonds with elderly parent

Post by FIREchief » Tue Sep 04, 2018 6:03 pm

This is a good topic for discussion. I had accumulated a large quantity of small denomination EE and I bonds over the years at Megacorp (they used to really push payroll deduction purchases). When I FIREd, I decided to simplify as much as possible, meaning those paper bonds had to go. I had two basic options: a) cash them at my local bank no more than ten at a time or b) convert them to electronic versions by sending them to Treasury Direct. I was nervous (paranoid?) about sending that many bonds through the mail and trusting the Treasury to not mess something up, so I just cashed them all locally. If the bank was slow, they would let me do twenty or thirty. Otherwise, it was sometimes ten at a time. It took us about ten trips to the bank to rid ourselves of these archaic investments. Glad they are long gone..... 8-)
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

thelimocat
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Re: Dealing with paper EE bonds with elderly parent

Post by thelimocat » Tue Sep 04, 2018 6:31 pm

markcoop wrote:
Tue Sep 04, 2018 2:04 pm
MrsBDG wrote:
Tue Sep 04, 2018 2:00 pm
Can you transition the paper bonds to a Treasury Direct account? That's what I did for my parents' bonds. They mature, then can be transferred to the bank account.
Is that hard to do? I have about a one inch thick envelope of bonds.
MrsBDG has it right.
Its more time consuming as you need to setup an account for them. Send the bonds and let TD up load them into their system could be a few weeks. So if the money is not required you could send some or all. The other issue is the maturity dates, they will just sit on them until they quit drawing interest. Not sure how you go about changing that part. Mine are just sitting there so its going to be interesting when they start to come down to my bank but then I have no need and they are small.
TD runs a pretty tight ship so not sure if a POA will do it for them.
Good luck.

thelimocat
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Re: Dealing with paper EE bonds with elderly parent

Post by thelimocat » Tue Sep 04, 2018 6:32 pm

markcoop wrote:
Tue Sep 04, 2018 2:04 pm
MrsBDG wrote:
Tue Sep 04, 2018 2:00 pm
Can you transition the paper bonds to a Treasury Direct account? That's what I did for my parents' bonds. They mature, then can be transferred to the bank account.
Is that hard to do? I have about a one inch thick envelope of bonds.
MrsBDG has it right.
Its more time consuming as you need to setup an account for them. Send the bonds and let TD up load them into their system could be a few weeks. So if the money is not required you could send some or all. The other issue is the maturity dates, they will just sit on them until they quit drawing interest. Not sure how you go about changing that part. Mine are just sitting there so its going to be interesting when they start to come down to my bank but then I have no need and they are small.
TD runs a pretty tight ship so not sure if a POA will do it for them.
Good luck.

RickBoglehead
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Re: Dealing with paper EE bonds with elderly parent

Post by RickBoglehead » Wed Sep 05, 2018 5:50 am

markcoop wrote:
Tue Sep 04, 2018 1:52 pm
No dependency on the money to live. Bunching is certainly possible. In fact, I did bunch a couple of months already and I may accompany her to the bank at times too. However, I just think as parents get older and older, this is going to become a bigger concern. I think I need to look into the POA (or whatever it is called) for savings bonds.

I wish there was a way to tell the gov't to please deposit all matured bonds into a bank account.
Link was provided several posts down.

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Mel Lindauer
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Re: Dealing with paper EE bonds with elderly parent

Post by Mel Lindauer » Wed Sep 05, 2018 9:47 am

Since EE Bonds only get interest credited every six months, you're losing interest unless you redeem them on the six- or twelve-month anniversary of issue.

So be sure to redeem them properly to maximize interest.
Best Regards - Mel | | Semper Fi

MrsBDG
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Re: Dealing with paper EE bonds with elderly parent

Post by MrsBDG » Wed Sep 05, 2018 11:15 am

As I recall switching to e-bonds was merely a paperwork pain, I remember the tedious project of reading each bond and writing/typing the details onto the list.
I will say that I find TD to be an annoying website, it's definitely lowest bidder! But when a bond matures, they email, you login, you redeem the C of I account monies to be electronically transferred to the bank account you've set up. It's pretty easy.
I believe these old bonds are making 4% so it seemed worth leaving them there.

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Earl Lemongrab
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Re: Dealing with paper EE bonds with elderly parent

Post by Earl Lemongrab » Wed Sep 05, 2018 11:52 am

The OP said the bonds were coming due. I am assuming that means that they've reached final maturity and earn no further interest. As such, unless the money is needed for expenses, there's not a lot reason to rush to bank to cash them. Sure, you have a bit of opportunity cost on the money, but that depends on what they're doing with the proceeds.

I just go to the bank once a year in December with my matured bonds so I only need to go through the signing process once.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

mnecon
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Re: Dealing with paper EE bonds with elderly parent

Post by mnecon » Wed Sep 05, 2018 12:58 pm

I just wanted to chime in with a heads up if both parents are still alive. My mother recently passed away and my father was the beneficiary on her paper EE and I bonds. In order to retitle them in his name, he was forced to open a Treasury Direct account and mail them in as the Treasury doesn't issue paper bonds at all any more. It worked smoothly, however did take a significant amount of time. Fortunately, since I am 1000+ miles away, his small town bank associate spent the time to help him do it.

If this is the case or, you are the beneficiary on the bonds, you may want to set up the account now. I have logged in with my dad now and I could do things for him remotely if it became necessary.

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