US savings bond (noun): A practically risk free bond endorsed by the federal government that does not have state or local income taxes. It offers a fixed interest rate on a fixed amount of time. In regards to probate, the income of a US savings bond collects without incurring taxes until they are cashed in. When a bond owner dies, the new owner is responsible for the tax on the interest that collected during the lifetime of the decedent. To read more about US savings bond click here.
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