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Who Can Own Bonds and Ways of Registering Them

Submitted by admin on Mon, 08/27/2007 - 21:47.

Who can own bonds?

Series EE bonds may be bought by individuals, corporations, associations public or private organizations, and fiduciaries.

You can own U.S. Savings Bonds if you have a Social Security number and you're a resident of the United States residing abroad, or a civilian employee of the United States regardless of residence. (Note: If your career plans include becoming Secretary of the Treasury or the Treasurer of the United States, you should know that while you're in one of those jobs, you can't buy savings bonds!)

Unlike other securities, minors may own U.S. Savings Bonds. A parent, other relative, or friend can buy a bond for a minor who doesn't have a Social Security Number. In this case, or if the minor's SSN isn't known, the purchaser is required to provide his own Social Security Number but doesn't incur a tax liability.

Different Ways of Registering Bonds

Savings bonds are registered Treasury securities and may be registered in the names of individuals in one of three ways:

  • single ownership
  • co-ownership OR
  • beneficiary form.

SINGLE OWNERSHIP: Bonds registered in single ownership form have one owner. Only the registered owner may redeem the bond. If the owner dies, the bond becomes part of the owner's estate.

  • Example:

123 45 6789[Social Sercurity Number]

John Q Doe

CO-OWNERSHIP: Bonds registered in co-ownership form have two co-owners. Either co-owner may cash the bonds without the knowledge or approval of the other. If one co-owner dies, the other co-owner becomes the sole owner of the bonds.

  • Example:

123 45 6789

John Q Doe

or Jane S Doe

BENEFICIARY: In beneficiary form, there is one owner and one beneficiary. The registration includes the designation "P.O.D." (payable on death). Only the owner may redeem the bond during his/her lifetime. The beneficiary, if he/she survives the owner, automatically becomes owner of the bond when the original owner dies.

  • Example:

987 65 4321

Jane S Doe

P.O.D. John Q Doe

If a name is listed on a bond as part of the address--generally after "Mail to," that person has no ownership or beneficiary rights.

When you buy a bond, the owner's Social Security Number is required. If you're buying a gift and don't know the person's number, you can use your own Social Security Number.

Although most bonds are issued to individuals, they may also be issued in the names of corporations, associations, public and private organizations, fiduciaries, and other entities as single owners. If bonds are purchased for non-individuals, the owner's Employer Identification Number is used. No organizations of any type (except the U.S. Treasury) can be named on a savings bond as a co-owner or beneficiary.