Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs.  U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.  There are different types of bonds; however, I am narrowing my focus to the Series EE and Series I U.S. Savings Bonds.

Series EE U.S. Savings Bonds are an appreciation-type (or accrual-type) savings security. Series I U.S. Savings Bonds are inflation-indexed.  According to the U.S. Treasury, starting Jan. 1, 2012, you can no longer buy paper savings bonds at financial institutions. But you can go online to purchase the two types of electronic savings bonds mentioned above.

Savings bonds are a popular birthday and graduation gift and also can be used toward financing education, supplemental retirement income, and other special events. Unlike other securities, minors may hold U.S. savings bonds in their own name.  Savings bonds can be titled jointly or even “payable on death” or “POD” to a person.  Furthermore, they can be titled in the name of a Revocable Living Trust.  If you already have bonds and want to re-title, you will likely have to relinquish the paper bonds and open a U.S. Treasury Direct account.

You pay no state or local taxes on the interest on the bonds, and you can defer paying federal taxes on the interest until you cash in the bond or until it matures.  In addition, tax benefits are available for eligible taxpayers when Series EE and Series I savings bonds are used for qualified education expenses.

The savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE and I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution.  There are some additional requirements as follows:   1) qualified higher education expenses must be incurred during the same tax year in which the bonds are redeemed, 2) you must be at least 24 years old on the first day of the month in which you bought the bond(s), 3) when using bonds for your child’s education, the bonds must be registered in your name and/or your spouse’s name. Your child can be listed as a beneficiary on the bond, but not as a co-owner, 4) when using bonds for your own education, the bonds must be registered in your name, 5) if you’re married, you must file a joint return to qualify for the exclusion, 6) you must meet certain income requirements, 7) your post-secondary institution must qualify for the program by being a college, university, or vocational school that meets the standards for federal assistance (such as guaranteed student loan programs).

Information contained in this article is courtesy of the following:
http://www.treasurydirect.gov/indiv/planning/plan_education.htm
http://www.sec.gov/answers/savingsbond.htm

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

“Important Information About Savings Bonds” by Attorney Paula M. Mattson-Sarli

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  Make sure to tune in to WNAV Radio on 1430 AM or 99.9 FM on Tuesday mornings at 8:50 a.m.  for YOUR ESTATE MATTERS!  Attorneys Colleen Sinclair Prosser, Nicole Livingston and Paula M. Mattson-Sarli relate cutting edge estate planning information.  The topic tomorrow is “Important Information About Savings Bonds” by Attorney Paula M. Mattson-Sarli.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

   The Community Foundation of Anne Arundel County is launching its inaugural 24 hour on-line fundraising event called “The Great Give”.  It begins at 7:00 p.m. on May 15^th and ends at 7:00 p.m. on May 16^th.  Everyone is encouraged to participate.

The purpose of The Great Give is to raise awareness of local charities, their missions and their needs, to raise funds for local charities, and to inspire and strengthen philanthropy in our community.

How can you participate in The Great Give?  First, check out the website for the Community Foundation of Anne Arundel County http://www.cfaac.org/ which provides information on how to participate.  To stay informed, you can sign up for regular updates of the fundraising results.  Secondly, you want to find a way that you can support your favorite charity.  Here are a few suggestions:     

You may give cash outright.  This is the easiest and most common method.  Many charities have websites that allow you to donate online.  You will also want to note that donations to charities may be tax deductible.

You can name a charity as a beneficiary in your Last Will and Testament, or in your Revocable Living Trust.

You can name the charity the beneficiary of an IRA, annuity, or other tax deferred account.  The entire amount in the account can be passed to the charity without the payment of deferred income taxes.  This permits the charity to get the entire amount of the IRA.

You can give appreciated property to a charity, such as low basis stock.

There are many different types of trusts you can set up to benefit your favorite charity such as Charitable Remainder Trusts, Charitable Lead Trusts and Charitable Gift Annuities.  You may want to discuss whether a charitable trust is right for you with your estate planning attorney and trusted advisors.

You can also give your time and expertise to benefit your favorite charity.

Please consider how you can benefit your local community by contributing to your favorite charity.  Participating in The Great Give’s exciting, inaugural event is a good place to begin.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  “The Great Give – May 15th and 16th, 2013″ by Attorney Colleen Sinclair Prosser

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  Make sure to tune in to WNAV Radio on 1430 AM or 99.9 FM on Tuesday mornings at 8:50 a.m.  for YOUR ESTATE MATTERS!  Attorneys Colleen Sinclair Prosser, Nicole Livingston and Paula M. Mattson-Sarli relate cutting edge estate planning information.  The topic tomorrow is “The Great Give” by Attorney Colleen Sinclair Prosser.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  SinclairProsser Law, LLC is pleased to be a sponsor of “Great Give”, a  Community Foundation of Anne Arundel County (CFAAC) 24-hour online fundraiser taking place from 7 PM on May 15, 2013 to 7 PM on May 16, 2013.  For details visit http://www.cfaac.org/

The goal of the Great Give is to raise awareness of local charities, generate mission-critical operating funds from their current donors while showcasing them to new donors, provide charities the chance to earn additional cash prizes and inspire and strengthen a “Give Local” spirit among the generous citizens, businesses and organizations that call Anne Arundel County home. Working together we can make a difference!

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  The most important step of the entire process is proper execution of the documents.  Once your documents have been prepared, you will come into our Annapolis estate planning office for your final signing appointment.    Some documents need to be notarized, some need multiple witnesses.  During your final signing, we will provide a thorough explanation of the documents.  Often you will be signing your Revocable Living Trust, a pour-over Will, two property Powers of Attorney – the statutory form and our supplemental form, a Health Care Power of Attorney, a Living Will, and your HIPAA (Medical) Release form.  With the Revocable Living Trust, you will also sign a Certificate of Trust and an Assignment of Personal Property.

After the documents have been signed, witnessed and notarized, our paralegal reviews with you the funding letters, particularly if you have a Revocable Living Trust.  The letters include an instruction sheet for each different type of asset, a cover letter to your financial institution explaining that you set up an estate plan, and often we will have the accompanying forms from the financial institutions.  We spend quite a bit of time with you to make sure you understand what to do with this paperwork.  Without funding your trust, you are missing the last step of the process.  To transfer stock and mutual funds, a medallion guaranteed signature is required.  This can be accomplished at your local bank.  You will need to go to your bank in person to transfer your accounts, or make them payable on death.  The IRA and life insurance beneficiary forms can often be mailed directly to your financial institution.

When you leave our office, you will have possession of your original documents and a flash-drive with a digital copy of your documents.  In today’s world, an electronic version of your estate plan is necessary.  You may not realize the value of the electronic version immediately; however, your successor trustee will appreciate having the flash-drive.  We also ask that you write instructions for your funeral, as well as the intended distribution of your tangible personal property.  Often the “stuff” is what the fights are about, so if you can make your wishes known now, hopefully your estate can be settled more amicably.

Remember, as a client of our law firm, you are entitled to free phone calls to ask questions regarding the funding of your living trust.  Should you encounter a situation that is giving you resistance, please do not hesitate to call.  We are happy to help.  Please bear in mind that our paralegals are often with clients or on another call.  You may be directed to their voicemail, but rest assured, they will  call you back in a timely fashion.  Breathe deep!  Together we will get you through the process and you will have the peace of mind knowing that you have fully funded your trust.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  “Your Final Signing Appointment” by Attorney Nicole Livingston

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

  The presentation establishes the necessary components of an effective estate plan. The seminar is presented in a case study format profiling the life of Bill and Mary Jones. Several scenarios are used to relay the impact of estate planning issues relating to probate, disability due to incompetence, protection of government benefits for special needs loved ones, second marriages, unmarried couples, minimization of federal estate tax and preserving the family legacy. Wills, living trusts, powers of attorney and health care directives are all represented in the presentation, as well as long term care and Medicaid planning. At its conclusion, the audience will have a clear understanding of their estate planning options and be equipped to make the choices needed for themselves and their loved ones. You won’t want to miss this seminar – it’s informative and easy-to-understand! TO RESERVE YOUR SEATS AND FOR DATES, TIME AND LOCATION VISIT  http://www.sinclairprosserlaw.com/local/estate-planning-seminars.aspx

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.