In addition to savings bonds,
the U.S. Treasury also has billions of dollars in outstanding bearer and
registered securities:
► TIPS Treasury Inflation
Protected Securities
Treasury Inflation Protected Securities
(TIPS) are
marketable securities whose principle is adjusted by changes in the
Consumer Price Index. TIPS pay inflation-adjusted interest every six
months and are issued in $100 increments with maturities of 5, 10, and
30 years. They are sold at face value. IRS Form 1099-OID reports
the amount of original issue discount on TIPS (Treasury
Inflation-Protected Securities).
►
Series I Bonds
Series i bonds arn
interest based on combining a fixed rate which remains the same
throughout the life of the bond, and a variable inflation rate
calculated semi-annually, based on changes in the Consumer Price
Index. They continue to earn interest for up to 30 years.
You may cash
them in any time one year after issue, but if you cash them in before
five years you lose the last three months interest. Interest is
compounded semi-annually and paid monthly. Redemption can be done online
at the TreasuryDirect website. You can redeem paper Series I Bonds at most
local financial institutions.
► Treasury Bonds and Treasury
Bills
Treasury Bills are
short-term government securities with maturities ranging from a few days
to 52 weeks. They are currently issued electronically and are typically
sold at a discount from their face value. Treasury
Bonds pay
interest every six months and mature in 10-30 years. Treasury
Notes have
maturities of 2, 3, 5, 7, and 10 years, and pay interest every six
months.
For Treasury Bonds and Treasury Notes, letters are sent to owners two
months prior to maturity, and IRS Earnings Statements (1099-INT) are
sent following the end of the calendar year when an interest check is
issued.
IRS Form 1099-B, Proceeds from Broker and Barter
Exchange, is sent to registered owners of matured Treasury Bonds and
Treasury As noted above, IRS Form 1099-OID reports the amount of
original issue discount on TIPS (Treasury Inflation-Protected
Securities).
If any of these documents are included among the papers
of a deceased family member, it's worth checking to ensure full payment
has been received. For additional information and assistance contact:
► Uncashed Government Checks
For most checks , state
unclaimed property statutes consider the underlying funds to still be
owed the payor, even if the instrument is not deposited or cashed. If a
lost or destroyed check is not reissued by the payee, the face amount of
the check must be reported as unclaimed property after expiry of the
dormancy period, usually 1-2 years. This is true even if a check has a
'void after' date stamped on it.
Checks issued by federal
agencies, however - including the IRS, Social Security
Administration and the Bureau of Public Debt - do not come under the
purview of state statutes. Checks drawn on the U.S. treasury are void
after one year, after which time they must be reissued.
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