[rhalscheid]

I have Series EE Gov. Savings Bonds in both of my deceased parents names. I am the only child and executor of their estate. Can I cash the ponds and deposit the money into estate account to avoid paying income tax, then later withdraw? I live in NJ and do not know the tax law on this subject can someone give advise?

[AtlantaTaxExpert]

When you cash in the Savings Bonds, the accrued interest is paid and becomes taxable income to the estate, so you may have to file a Form 1041 (fiduciary return) to account for that interest.

Whether taxes are due depends on the level of income.