Gifts of Savings Bonds
Savings Bonds, which were purchased at a discount long ago, and possibly no longer even accruing interest, are ideal assets to transfer on a testamentary basis because, like qualified retirement plans, they produce income in respect of a decedent and are therefore subject to income taxes in the hands of those who inherit them-unless they are bequeathed to charity. Bonds can be poor candidates for lifetime gifts because a transfer to charity causes the donor to recognize the deferred interest for income tax purposes.

You may want to consider including language with bequests in your will or trust that specifies your intentions for these often valuable assets-e.g., "all U.S. government obligations of all types and kinds, in equal shares to the following charities: listed."

Older bonds accruing little or no interest can be cashed in during life to fund an outright charitable gift or fund a life income gift. The charitable deduction can in some cases exceed any income inclusion.

For more information about structuring and planning gifts involving Savings Bonds, please contact our director of Planned Giving for a confidential consultation.

For more information on Planned Giving, contact Peter Congleton at 860.768.2415 or congleton@hartford.edu


Please note that the University of Hartford does not provide tax or legal advice. Gift calculations may be provided for illustrative purposes only, and the actual values may vary based on the timing and nature of your gift. Advice from legal and tax counsel should be sought when considering a charitable gift of any kind.