Einhorn Harris Associate, Matthew Rheingold responds to NJ.Com query “What to do with inherited bonds?”

The following post was written over one year ago. Laws often change and recent case decisions may impact how the law is applied. As such, the information in this article may not be current. We encourage you to contact our firm for information on this particular article and to make sure the analysis is still up-to-date.

Q. When my father died, he owned six EE savings bonds that were POD to me. Can I hold them to maturity or must I cash them now?

A. Generally speaking, a payable-on-death “POD” account is a special type of account recognized under the law which provides that any assets remaining in an account when the account owner dies will pass directly to the beneficiaries who have been named by the account owner.

Designating someone as a POD beneficiary does not affect their rights to the account until the account owner dies, said Matthew Rheingold, an associate with the Firm’s Taxation/Trusts & Estates Department.

Read the NJ.Com ‘Biz Brain’ article here in it’s entirety.