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Do you have savings bonds tucked away for a rainy day?

While you may have bought the bonds thinking that you would redeem them for cash or reinvestment, bonds are often forgotten or redemption put off because the accumulated interest will be taxable.

Savings bonds are normally taxed when they’re cashed in, reissued to another person or reach final maturity. If you redeem your savings bonds and use the cash to make a gift to the JCFC, the redemption will trigger a tax liability to you on the interest income; however, you will receive the benefit of a charitable tax deduction to help offset the additional taxable income.

If you never redeem your savings bonds, your estate will usually be subject to taxes on the accumulated interest when the bonds are cashed.

You can bypass this tax burden and make a charitable bequest by adding a codicil to your will or an amendment to your living trust, that leaves your bonds to your fund at the Jewish Community Foundation of Calgary.  Because we are a tax-exempt organization, your fund will receive 100 percent of the value of the bonds and your family can receive other assets that won’t trigger income taxes.