Basically, if the U.S. Savings Bonds are not made out to you, then you will need a court order in order to cash them in. As a beneficiary recipient of the bonds, this order will typically come from the probate court. Since your name is not on the bonds, you can't cash them unless you can prove you have the legal right to do so. When you do cash them, you will be required to provide your SSN and a valid mailing address to the banking institution that cashes them, because the proceeds will be taxable income to you. At a minimum, at tax time you will receive a 1099-INT (not a 1099-MISC) to report the interest on the bonds.
Typically, Series EE savings bonds are purchased at 1/2 of their face value. So if you cash in a fully matured $100 savings bond, then you will be taxed on $50 of that bond. There are some bonds that can an do earn beyond their face value. But the point is, the amount paid above the initial purchase price of the bond, is reportable/taxable income in the year the bond is cashed out.
