Saturday, December 16, 2017
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Frequently Asked Questions - Church Bonds

frequently asked questions (Church bonds)

Q. Is there a minimum investment for Church bonds?

A. A Church bond may be purchased for as little as $250. Bonds must be sold or transferred in $250 increments.

Q. What does “Registration” on a bond mean?

A. “Registration” refers to the name or names on the bond that designate(s) ownership. Principal and interest checks paid on the bond will be made payable exactly as the name(s) and address appear on the registration.

Q. Are there different ways a bond can be registered?

A. Yes, there are several different ways that you can register a bond and designate ownership. The most common examples are as follows:

Individual ownership โ€“ Designates you or someone else as the sole owner.

Joint Tenants (JT TEN or JTWROS) โ€“ More than one owner on the bond registration. For example, a spouse or other family member, business partner, etc.

Transfer on Death (TOD) - One or more beneficiaries can be named on the bond registration itself.

Custodial accounts for minors (UGMA or UTMA) โ€“ An asset may be held by an administrator or custodian until the registered owner reaches age 18 (21 in some states).

Q. Why list more than one owner on a bond registration?

A. This is one way of designating beneficiaries to receive your assets at the time of your death without having to go through probate. Your assets will then be automatically transferred to the designated beneficiaries upon your death, provided we receive a Certified Death Certificate and instructions to transfer ownership.

Q. What does “JTWROS” mean?

A. “JTWROS” stands for Joint Tenants with Rights Of Survivorship, meaning if one owner dies, that owner’s interest in the property will automatically pass to the remaining owners. Keep in mind, all Joint Tenants are required to endorse principal and interest checks and sign off on any transfers of ownership.

Q. What does “TOD” mean?

A. “TOD” stands for Transfer on Death, meaning if the registered owner dies, that owner’s interest in the property will automatically pass to any persons listed as a “TOD” beneficiary. TOD beneficiaries are not required to endorse principal and interest checks and do not have joint ownership of the assets untilthe death of the registered owner.

Q. How can ownership of a bond be transferred or sold?

A. In general, we require a completed Bond Transfer Power with the signature of the owner(s) Medallion Stamp Guaranteed and $10 per bond/book entry to transfer. In the case of death, a Certified Death Certificate is required (fees are waived for transfers due to death). Requirements for transfer can vary depending on how the bond is currently registered and other circumstances. If you have questions about how to re-register a bond, please call Investor Services at (800) 486-6888 to make sure you send the correct documentation with any transfer request.

FDIC NOTICE: IRA and/or Bond investments represented on this website are not FDIC-insured, are not guaranteed by GoldStar Trust Company, and involve risk including possible loss of principal. If held in a GoldStar IRA or GAMMA account, the un-invested cash portion is FDIC insured up to $250,000.