tag:blogger.com,1999:blog-775967109474059335.post3640378874156023212..comments2023-11-13T00:52:34.306-08:00Comments on Kevin On Investing: I Bonds: Part 2Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-775967109474059335.post-57268590841480371942011-06-29T17:53:48.825-07:002011-06-29T17:53:48.825-07:00Anonymous,
Regarding purchase limits for a living...Anonymous,<br /><br />Regarding purchase limits for a living trust and an individual whose SSN is used as the Tax ID for the trust, from the language used in most places, one would think that you could not double up on the limits by using a living trust, for the reason you stated. For example, here is the first Q&A from the Federal Reserve Banks web page on savings bond limits frequently asked questions (http://www.frbservices.org/help/savings_bond_limit.html#7):<br /><br />--<br />Q: What is the annual purchase limit for U.S. Savings Bonds?<br /><br />A: Effective January 1, 2008, the annual (calendar year) purchase limit applying to Series EE and Series I savings bonds is $5,000, issue price, for each series. The limit is applied per Social Security Number (SSN) or Taxpayer Identification Number (TIN). Individuals or entities may purchase up to $5,000 worth of each series in paper form. In addition, individuals can buy up to the same amount of each series in TreasuryDirect online accounts, or a total of $20,000 (issue price) in single ownership form per calendar year. Please note: Bonds purchased as gifts in the names of other people do not count against the bond purchaser’s own annual purchase limit, even if the purchaser’s SSN is used for the gift purchase. <br />--<br /><br />However, another Q&A on the same web page addresses the limits for trusts and individuals whose SSN is used as the TIN for the trust:<br /><br />--<br />Q: How does the limit apply to bonds purchased in the name of my trust?<br /><br />A: You may purchase up to $5,000, issue price, for each series in the name of your trust using the TIN assigned to the trust. The limit applies to the trust as a single entity. If an individual’s SSN is used to purchase bonds in the name of the trust, that individual may still purchase up to the annual limit of both series under his or her own name.<br />--<br /><br />From the first Q&A, you can infer that they are talking about the limits on savings bonds in each form (paper or electronic).<br /><br />I've seen this discussed in various places, but it's nice to have an authoritative source (the Federal Reserve Bank) to reference. A trust seems to be an exception to the common language of "per series, per type, per SSN/TIN".<br /><br />You can definitely open a Treasury Direct account for yourself as an individual and for your living trust using your SSN, and purchase the maximum annual limit in each account--I've done it.Kevinhttps://www.blogger.com/profile/03576910288369216955noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-29420474784818981012011-06-29T16:25:40.156-07:002011-06-29T16:25:40.156-07:00I disagree that you can purchase I bonds for both ...I disagree that you can purchase I bonds for both yourself and your living trust. According to Treasury Direct, the limit is applied per Tax ID Number. A living trust typically uses the social security number of one or its grantors as its Tax ID Number. Since the limit is applied to the Tax ID Number (in this case, the grantor's social security number), I believe that the trust is not allowed to purchase I bonds after the grantor has reached the limit. If you disagree, please explain why.Anonymousnoreply@blogger.com