Co-Ownership vs. Beneficiaries With Savings Bonds

U.S. savings bond are a common vehicle for education and retirement planning.

savings bonds image by Stephen VanHorn from

When purchasing U.S. savings bonds, the way you title them determines who actually owns them and can eventually cash them in. If you put your own name on the title or buy them as a gift for someone else in his name, that is sole ownership. Two people on the title are co-owners. You can add a beneficiary, but co-owners have different rights to the bond than beneficiaries.

Non-Transferable Bonds

U.S. Savings bonds are non-transferable, meaning you can't simply give a bond to another person if it is in your name. It also means that if you come across old bonds in the attic or at a yard sale, you can't cash them in. The bonds belong to whoever is the listed owner or co-owner, or the beneficiary if the former individuals have died.


When co-owned, bonds belong equally to both owners. Either person can cash in a bond without the other person's approval or knowledge. Upon the death of one owner, the surviving owner is the only owner of the bonds. The bonds do not become part of the decedent's estate. Only people, not organizations, can co-own savings bonds. Saving bonds cannot be titled in the names of more than two owners.


If the bond is titled for a beneficiary, it has one owner and one beneficiary. The bond is registered as payable on death, so when the owner dies the bond passes to the designated beneficiary. Bonds titled in this manner are part of the decedent's estate, although the "payable on death" provision means they do not go through probate. During the owner's lifetime, she is the only person who can redeem the bond. As with co-ownership, organizations are prohibited from serving as beneficiaries. Only a person designated as a beneficiary can redeem the bond after the owner's death. While the bond may include information on it saying "Mail to" another individual, that person is neither an owner nor a beneficiary.


If you own a bond solely in your name and want to add a co-owner or beneficiary or change the beneficiary to a co-owner, you must have the bond reissued. To do this, fill out Form PD F 4000 E, available online from TreasuryDirect. You can also use this form if you are the surviving co-owner and want the decedent owner's name removed from the bond. You can request to have the bond reissued in your name alone or with another co-owner or beneficiary. If you establish a revocable living trust and want the bonds reissued in the trust's name, use form PD F 1851.

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About the Author

Jane Meggitt has been a writer for more than 20 years. In addition to reporting for a major newspaper chain, she has been published in "Horse News," "Suburban Classic," "Hoof Beats," "Equine Journal" and other publications. She has a Bachelor of Arts in English from New York University and an Associate of Arts from the American Academy of Dramatics Arts, New York City.

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