Series HH/H Savings Bonds: Often Forgotten During Probate

In the United States, this year, millions of retirees will seek out methods to continue earning a return on retirement income. For some, the use of Series HH/H savings bonds was long considered an avenue to earn some type of return while retaining liquidity of the financial investment. As a legal guardian, or Power of Attorney, caring for a retiree in possession of Series HH/H savings bonds, the following is an overview of the program details.

As of September 1, 2004, The Series HH/H savings bonds are no longer an active investment option. However, for senior adults who purchases Series HH/H savings bonds, prior to September 1, 2004, interest income may still be paid until such time as the Series HH/H bond matures, up to 20 years from the date of purchase.

As of the date of this writing, the Series HH/H savings bond yields a 1.5 percent rate of return with an adjustment made on the 10^th anniversary following the purchase of the Series HH/H savings bond. As a low risk investment, the Series HH/H savings bond provided the retiring adult an option to invest income into a very low risk rate of return, often lower than that of most savings plans through financial institutions. For this reason, as of September 1, 2004, the Series HH/H savings bonds are no longer available for purchase.

When caring for a senior, retired adult, in possession of Series HH/H savings bonds, consider options for moving the financial investment to another form of low risk return. For those senior adults who do not rely on the interest as income, the financial investment, currently in a Series HH/H savings bond, can be moved to a Series EE/E or Series I, earning a greater rate of return. The disadvantage, of course, is the lack of interest payments until such time as the savings bond is cashed out; anywhere from one to 30 years.

For senior, retired adults who do not wish to cash out, or move, monies invested into a Series HH/H savings bond, the Power of Attorney, or legal guardian, should monitor for interest income deposits on a semi-annual basis. These interest income deposits are paid until such time as the Series HH/H bond matures, 20 years from the date of purchase, at which time the bond is automatically cashed out and no longer earns interest income. As part of an estate or probate action, all possible savings bonds, including Series HH/H savings bonds should be investigated as, in many cases, since the these savings bonds are no longer sold, many family members, care givers, Power of Attorneys and heirs fail to remember the Series HH/H may be in existence.

For more information regarding Series HH/H savings bonds, visit www.savingsbonds.gov