TreasuryDirect registrations

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Topic Author
BF3000
Posts: 2
Joined: Tue Jun 08, 2021 7:16 pm

TreasuryDirect registrations

Post by BF3000 »

I'm a longtime lurker, but this is my first post. I have been following several posts regarding Series I bonds over the last few months and decided to take the plunge. I purchased $30,000: $10K for me (with spouse as co-owner), $10K for my spouse (with me as co-owner), and $10k for my revocable trust. Does anybody know if there is a post-purchase way to re-register the first $20,000 of bonds in the name of my revocable trust? I don't see this option within TreasuryDirect.

Alternatively, is there a way to name my daughter as the beneficiary while my spouse and I are co-owners? On the this point, it seems like the registration only gives 2 blanks: one for the primary owner and one for the secondary owner. So, there is no way to insert a third person into the mix. Maybe I'm missing something. Much thanks.
SnowBog
Posts: 1388
Joined: Fri Dec 21, 2018 11:21 pm

Re: TreasuryDirect registrations

Post by SnowBog »

Welcome to the forum!

If you purchased all of these in the same account, then you purchased $20k more than you are allowed. Not sure what will happen... I've heard the "extra" get liquidated and money returned. I've also heard that you might get a letter saying "don't do it again" (but the purchase will stay). Will be interested to see what (if anything) happens... (I wouldn't be "worried" about it, they'll either leave it alone or help you fix the innocent mistake.)

Normally, your spouse would have their own (separate) account (with them as the primary account holder).

Likewise, your trust would have its own "entity" account. The only option for "entity" accounts is to register in the name of the trust.

And you'd purchase up-to $10k/year in each account.
HomeStretch
Posts: 6359
Joined: Thu Dec 27, 2018 3:06 pm

Re: TreasuryDirect registrations

Post by HomeStretch »

No, you cannot add a beneficiary on an I-Bond with two owners per this TD web page:
https://www.treasurydirect.gov/indiv/re ... ibonds.htm
BrokerageZelda
Posts: 91
Joined: Sat Apr 10, 2021 10:39 am

Re: TreasuryDirect registrations

Post by BrokerageZelda »

Your current purchases so far ($10k for two individuals and $10k for a trust) appear to be in bounds, assuming you opened three different TD accounts and bought $10k in each.

While it is possible for an individual to ask TD to re-register bonds with individual registrations into the name of their own revocable trust, TD will probably refuse to do it (or at least give you a stern warning) if you've also already used up the trust's $10k purchase limit in the same year.

Because TreasuryDirect does not have 'joint accounts', the second name on a bond is always considered the beneficiary to the first-named "Primary Owner". A "Secondary Owner" is technically more like a "beneficiary with benefits" whose rights to the bond can be revoked at any time by the Primary Owner with no paperwork or tax consequences. This is the underlying reason why you can't have both a Secondary Owner and a Beneficiary.

That said, the Primary Owner has the right to edit, add, or delete Secondary Owners or Beneficiaries at any time. So if your currently designated Secondary Owner or Beneficiary is either no longer around or no longer deserving of an inheritance, you can always log in to TD and edit the bond's registration to set things right again.
Topic Author
BF3000
Posts: 2
Joined: Tue Jun 08, 2021 7:16 pm

Re: TreasuryDirect registrations

Post by BF3000 »

Very helpful. Glad I posted!
SnowBog
Posts: 1388
Joined: Fri Dec 21, 2018 11:21 pm

Re: TreasuryDirect registrations

Post by SnowBog »

One other note, at least for the spouse accounts, each can grant "transaction rights" on previously purchased bonds to the other.

So I go on buy a $10k I Bond with spouse as secondary owner (aka beneficiary). Then I grant spouse "transaction rights" so they can view - even sell (if so configured) - the bond from their account.

Spouse does the same for me...

Then either of us can log in and see/sell both "our" bonds and those of spouse. So you need to "actively" use both accounts while purchasing, but when it comes time to sell you really only need to use one of the accounts (which also has transaction rights to the other account).

Unfortunately, no such option exists for the entity account...
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