Legal Question in Wills and Trusts in New Jersey

Re: POD Savings Bonds In A Will

I think you may not have all the facts. If everything is as you stated - the bonds were indeed yours and should have been transferred to you (they would have passed by operation of law outside the probate estate, but still includable in the estate for tax purposes) You should seek further information from the attorney/executrix before making any accusations that may not prove to be correct.

Re: POD Savings Bonds In A Will

You have 2 problems: First, if the bonds were POD to you, the proceeds should have gone to you exclusively, not split. The bond registration overrides any Will provisions to the contrary. For example, if there were a bank account in joint names or POD someone, but the Will left the asset to another person, the registration supercedes the language of the Will. This is called a non-probate asset, as the registration controls the disposition. Second, depending on the type of bonds (EE or H) and whether or not your uncle reported the income annually (optional for income tax purposes), there may be an income tax liability on the redemption. As the named beneficiary of the bonds this liability would fall on you as the beneficiary. It is possible that you could be hit for the entire tax even though the bond proceeds went to other people. There is a way to correct this if this happens. My suggestion is that the problem should be corrected and somehow the funds properly belonging to you be returned to you, or you be reimbursed from other assets of the estate, unless you are willing to consider the disposition to be a gift from you to cousins or siblings.