- 3 - will and testament and, under the terms of that will, bequeathed her entire estate to petitioner. The will was duly probated, petitioner was recognized as his mother’s sole heir and legatee, and he was placed in possession of her estate. The record does not indicate what properties, other than the savings bonds, constituted the mother’s estate. It appears that the probate/succession proceedings were concluded in early 2001. Although the record is not entirely clear as to when the following events occurred, it appears that, at some point in 2001, petitioner received a notice from the bank where his mother did business, which stated that the annual fee for her safe deposit box was due. Petitioner was not aware that his mother had a safe deposit box, and he, accordingly, went through the necessary procedures to have the box opened. When the box was opened in 2001, petitioner discovered that his mother owned several series E U.S. savings bonds, which she had purchased over the years. The bonds totaled $30,000, and petitioner was the named beneficiary on the bonds. Petitioner then proceeded to redeem the bonds. Petitioner was paid the principal of the bonds and the interest that had accrued on the bonds. The interest totaled $31,980. For the year 2001, petitioner received from the payer bank two Forms 1099-INT, Interest Income, which totaled $31,980 for the interest. Petitioner did not include the interest as income on his 2001 Federal income tax return. ThePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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