Gift & Estate Planning
Forward this article to a friend   Print version   Increase font size  Decrease font size 

Gifts of Savings Bonds: Getting Started

Learn More
How It Works
Savings bonds are normally taxed when they're cashed in, reissued to another person or reach final maturity. Fortunately, you can reduce, or even eliminate, income taxes when you choose to leave your bonds to University of Georgia. Although the bonds themselves can't be directly donated to a charitable organization during your lifetime, there are three smart strategies that allow you to use your bonds to support our mission.

Question MarkDid you know?
Even though U.S. savings bonds offer steady return and absolute security, redeeming them can cause tax headaches. But you can save on taxes by using your bonds to support our cause.

Three Charitable Options
  1. Redeem your savings bonds and use the cash to make a gift to us. The redemption will trigger a tax liability to you on the interest income, but if you itemize, you will receive the benefit of a charitable tax deduction to help offset the additional taxable income.
  2. Leave the bonds to us through your will. Because we are a tax-exempt organization, we will receive the full value of the bonds, which could have otherwise been reduced by up to 39.6 percent for income taxes. For a small percentage of people, federal estate taxes might also reduce the amount available.
  3. Leave the bonds upon your death to a charitable remainder trust. They will first benefit your selected loved ones with lifetime payments, and then the balance will support our mission.

Case in Point
Steve leaves $10,000 of U.S. savings bonds to his daughter, Becky, upon his death. Becky is in the 35 percent income tax bracket, so she receives only $6,500 ($10,000 - $3,500) after she pays the income tax on the bonds. If Steve were to leave the bonds to us instead, we would receive the entire $10,000 because we are a tax-exempt organization.

eBrochures
Learn more about each of these ways to donate your savings bonds and the benefits in store for you.


How Long Will Your Bonds Earn Interest?
Series
Date of Issue
Number of Years Bonds Earn Interest
E May 1941-November 1965 40 years
  December 1965-June 1980 30 years
H June 1952-January 1957 29 years,
8 months
  February 1957-December 1979 30 years
Savings Notes All issues 30 years
EE All issues 30 years
I All issues 30 years
HH All issues 20 years
Source: www.savingsbonds.gov
As of Sept. 1, 2004, you can no longer reinvest H/HH bonds or exchange E/EE for HH bonds.


Learn More

If you have questions about this tax-smart way to give, please contact Hilda McDonald at 706-542-7226 or hmcdonal@uga.edu.



Copyright © The Stelter Company, All rights reserved.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.



Contact Us   |  Gift & Estate Planning Home  
Meet Our Donors
Dr. Irvin and Marey Wofford
UGA's Own A-Team: Irvin and Marey Carey Wofford.
More Info
Wayne Milton Kimberly
Wayne Milton Kimberly, an Augusta, Ga., native...
More Info
Shelly Nickols-Richardson
As a little girl, Shelly Nickols-Richardson and her brothers...
More Info
Rob & Renita Jones Anderson
When Rob Anderson met Renita Jones in 2004, it didn't take long...
More Info
The Phillips
Married nearly 53 years, Barry and Gracie Phillips have...
More Info
Lee Clarke
Lee Clarke knows the value in working as a team...
More Info
Ruth Rowan Morrison
Ruth Rowan Morrison (BSHE '44) vowed the day she received...
More Info
Linda Oakley
Linda Oakley has loved dogs her entire life...
More Info
Harriette Kirk Bohannon
As a 20-year-old young lady living in a little brick house...
More Info
Mitch and Jennifer Hardeman
When their daughter, Ansley, was born six years ago...
More Info
Diane and Bibb Saye
In the late 1970s, UGA political science professor Albert...
More Info
Dr. Barbara Andersen
As the saying goes, "Dynamite comes in tiny packages!" So explains...
More Info
Steve and Diane Horton
For Steve and Diane Horton, who have spent...
More Info
Steve and Diane Horton
How did UGA influence the career of Gene Methvin, ABJ ’59...
More Info
Brian Bruce
Brian Bruce grew up in Athens, GA, and graduated in 1977...
More Info
Scott Sikes
Scott Sikes has seen the field of development from...
More Info
John H. Crawford IV
John H. Crawford IV, a University of Georgia Foundation...
More Info


Contact Us


GET STARTED

FREE Estate Planning Kit