US savings bond I series is jointly held. Does the cost basis of the bond change to the current market value for the date of death if one of them passes away?

[la228491]

Jointly held by husband and wife. As in, step up in basis valuation.

[VolvoGirl]

I don't think so.  It's just interest that's accumulating.  You will pay the tax on the interest when you cash them in.  

[VolvoGirl]

Savings Bond info

https://treasurydirect.gov/savings-bonds/i-bonds/ 

When an owner dies

https://treasurydirect.gov/savings-bonds/manage-bonds/death-of-owner/