Diocese of Ogdensburg

The Roman Catholic Church in Northern New York

Everyone seems to have US Savings Bonds tucked away in a bureau drawer or safe deposit box. They’re a savings tool used by millions of Americans – in part because of favorable tax advantages.

Savings bonds are bought at a discount and double in value by maturity. Bonds are always free of state and local income taxes and, in general, the interest accumulates free of federal income tax, as well. Taxation occurs only when the bonds are cashed, reissued to another person or reach final maturity.

But bonds may be subject to heavy federal income taxes and state and federal “death taxes” in a person’s estate. Heirs will owe income tax whenever they cash savings bonds.

You can erase all taxes on savings bonds at death by changing your Will or revocable living trust to specifically leave bonds for the Diocese of Ogdensburg, your Parish, School, Diocesan Ministries and Program or Missionary Projects of the Diocese. Savings bonds that we receive pass 100% free of estate taxes and, as a tax-exempt organization we would owe absolutely no income taxes on the bonds. In other words, every dollar we receive from redeeming the bonds could be used, in comparison to the shrunken after-tax amount that would be available to other beneficiaries. These tax benefits may allow you to do more for the Church’s future than you might have thought possible.