- 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. The
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011