Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 24, 1995 TAG: 9504250007
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
I find he left me a lot of U.S. Treasury bills, and I have no idea how much they are worth. I doubt he ever knew how many he had. I know there will be a lot of interest to be paid on them if I cash them. They are in my lock box at the bank. What should I do with them?
A: Your story again proves the necessity for husbands and wives to keep each other fully informed about family finances. And everyone should have a list of his or her assets where heirs can find it.
First of all, you have to find out what you have in the lock box. You should ask for help from the customer service section of your bank, provided it belongs to the Federal Reserve System. That covers all banks and many savings banks. Ask for help in determining what it is that you own.
Second, you should transfer these securities into your own name. Your bank, as a member of the Federal Reserve, can help you with this.
If you really have U.S. Treasury bills, you are not earning any interest. If you have old bills - and bills have not been issued except as electronic entries since 1983 - they were issued for three, six or 12 months. After that time, interest stopped and the bonds should have been cashed in. You should do this now with help from your bank.
You more likely have U.S. Treasury notes, which were issued in certificate form until 1986. The difference between the two is that bills are issued for as long as one year, while notes are issued for one to 10 years. People can also invest in a note for less money. If you have Treasury notes, you may be still earning interest. But that interest should have been coming to your husband.
If you or the bank have any questions, or if you want to reinvest in U.S. bills or notes, you can call the investment number for the Federal Reserve Bank in Richmond. The number is (804) 697-8372. Ask for Linda Hoskin, who is aware of your situation and your letter.
A third possibility is that you have U.S. Savings Bonds. If you have savings bonds, interest has been accruing on a tax-deferred basis, so cashing them in would indeed subject you to hefty taxes.
If you have savings bonds, you must determine whether they are still paying interest. If the bond is more than 40 years old, the bond no longer earns interest and taxes are due.
If you have savings bonds and want to keep building interest, you should transfer the bonds to your own name.
If you want income without taxes, you should convert the EE bonds into HH bonds. The latter pay interest semiannually. And rolling your bonds over to HH bonds delays tax on the capital gain for another 20 years. You would be taxed only on the amount you receive in semiannual interest.
Legal guardians
Q: My mother has been in a nursing home in Bluefield, W.Va., for two years and went on Medicaid in 1994. I assume my mother will have to sell her home place if she can't return there in six months. My sister is her guardian. Can my sister sell the house without notifying the other children?
A: Your sister's powers as legal guardian depend on the scope of the court order that made her your mother's guardian. She may or may not have the authority to sell the house, depending on what the court approved at the time. If she does not have the authority, she might approach the court again for an expanded order. Or, if your mother is able to do so, she might give your sister power of attorney to sell the house.
Assuming she has the power to sell the house for your mother's benefit, she is under no obligation to inform you or her other siblings unless your names are on the deed. If the house is in your mother's name, you have no interest in the property.
by CNB