I’m involved figuring out how we should divvy up assets of a relative who just passed on.
(None of my children, siblings nor myself are close enough to receive any funds which is why I was chosen to do this).
He didn’t keep records very well.
He did note that in 2013 he cashed in on TreasuryDirect.org, Series E Bonds worth $21,702 and that the interest rate was 4.0 percent, 30 years.
To figure out the cost basis, can I just use the simple interest formula, P(+1(.04/12)^(12*30), worked backwards?
Thanks.March 10, 2019 at 5:42 am MST #197224ZZZParticipantStatus: SpousePosts: 425Joined: 06/18/2018
It’s 2019. How does the basis of a bond cashed in back in 2013 pertain to divvying up assets at present?
US Savings Bonds come in $500, $1000, $5000, etc. even denonominations, right?
If these were cashed they already part of the estate. you can also go online and figure out the cost for any bonds that have not yet been cashed.
I DO have my relative’s old TD account number, SSN, TD website login id and password, but the TD website account was closed in 2014.
I don’t have much experience with US Savings Bonds.
I contacted TD Customer Service using their messaging system and they told me to send a signed letter requesting a transcript with our attorney’s Estate Executor Statement.
I did this the other day.
I just wonder if the TD transcript will contain enough information to determine the original cost basis some 35-40 years ago, etc.March 10, 2019 at 2:33 pm MST #197316ZZZParticipantStatus: SpousePosts: 425Joined: 06/18/2018
You said the bonds were redeemed in 2013…why does the remote prior cost basis for a US bond redeemed 6 years ago matter in 2019?I just wonder if the TD transcript will contain enough information to determine the original cost basis some 35-40 years ago, etc.Click to expand…
why?!?!?!March 10, 2019 at 3:34 pm MST #197327
How do US Savings Bonds work exactly?
After the 30 year maturity do they continue to earn interest?
After 30 year maturity is it worth the face value of, $500, $100, $5000, etc.?
If my relative cashed in $21,702 of 4% Series E Bonds how much was the original cost?March 10, 2019 at 3:40 pm MST #197328DCdocParticipantStatus: PhysicianPosts: 404Joined: 06/14/2016
Cost basis is 1/2 the face amount for E bonds.March 10, 2019 at 4:07 pm MST #197330DCdocParticipantStatus: PhysicianPosts: 404Joined: 06/14/2016
If you create a treasury direct account and know the details of the bonds (issue date, redemption date, etc) you can get an accurate idea. But I agree with others – there’s no actual need to know the cost basis for bonds redeemed years ago if an estate.
Ok I’m over this.veritablpenguinParticipantStatus: PhysicianPosts: 42Joined: 04/11/2017
He doesn’t have bonds any more, he redeemed them. He has $21702 in cash. What he bought them for is irrelevant, unless you just like playing with math functions in Excel as a hobby.March 10, 2019 at 8:06 pm MST #197391
Cost basis is 1/2 the face amount for E bonds.Click to expand…
O.K. So then I would imagine my relative *could* have 35-40 years ago bought a face value $20,000 of Series E US Savings Bonds for $10,000.
After 30 years or so the value summed up to be the face value of $20,000.
Leaving it sit after maturity gained an additional $1,702 to sum up to $21,702 (as documented on pieces of paper left inside the desk after my relative’s death).
Thus the cost basis would be 1/2 or $10,000, and the long-term interest gain is $11,702.
Does that sound plausible?
Of course I still have to obtain real figures from TD transcripts that I just requested by snail mail last Friday.March 10, 2019 at 9:32 pm MST #197408ZaphodParticipantStatus: Physician, Small Business OwnerPosts: 5645Joined: 01/12/2016
Agree with everyone else. Doesnt matter. You have 21,702 in cash. Basis doesnt matter. Cant imagine how it would have ever mattered actually.March 10, 2019 at 9:42 pm MST #197410GParticipantStatus: Physician, Small Business OwnerPosts: 1462Joined: 01/08/2016
I bought a bottle of Balvenie 30yo for $600. By the time I finished it 2 years later, that same liquid was worth $800.
None of that matters, just like it doesn’t for your *redeemed* savings bonds.
If you’re just messing with us, nice work–you got a lot of responses!March 10, 2019 at 9:48 pm MST #197411