Terry,
Your original question was was addressed but I will provide the following
As an inheritor, you can either redeem the bonds or get them "reissued" in your own name, in which case you can continue earning whatever interest the bond pays until its maturity date. And before you decide to hold them or fold them, there are also various income tax strategies to consider.
savings bonds are considered "nonprobate assets," meaning that they are not generally inherited according to the terms of a will. (Other nonprobate assets include retirement accounts and life insurance.) Instead, they are "payable on death" to the person or entity (for example, a trust) named as co-owner or beneficiary and can generally be distributed immediately after someone dies.
If no survivor is named or that person has already died, the bond becomes an asset of the estate, in which case things get more complicated and distribution could take significantly longer. If the total value of the bonds and other Treasury securities is more than $100,000, federal regulations require they be administered through a court; when smaller sums are involved, Form 5336 walks you through a separate procedure, which can be used only when, irrespective of the bonds, under state law no court will be involved.
Once you know the value, interest rate, and redemption date of the savings bonds, you need to decide whether to redeem the bonds or have them reissued.
You will want to dump bonds that have matured and stopped earning interest. (You can find a list of them here.) If the bonds are still accruing interest, however, you have a decision to make. Depending on the type of bonds and when they were issued, the interest rate may be substantially higher than what other low-risk investments--such as Treasury bills, certificates of deposit, and money market funds--are now paying. In that case, you might decide to hang on to them.
Victor Santucci EA
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