Q I own some older EE bonds that will mature in a couple of years. Can I avoid income tax on the bonds by transferring them to a charitable trust? G.M.V., Atlanta
A No. Series EE U.S. Savings Bonds are taxable in the year they are redeemed or mature. Essentially, transferring the bond ownership to a charity will result in tax on the interest accrued to that point. However, if you desire to benefit a charity, you can then arrange for a gift of the proceeds when the bonds mature. The resulting tax deduction can offset part or all of the tax liability.
Tip: You may also recognize tax benefits by arranging to leave U.S. Savings Bonds to charity through your estate.
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