"Taxpayer had been talked into a living trust, so no probate is necessary, right? But the bonds were just in her name, and Treasury says if the amount exceeds $100,000 they need a court appointment. Has anyone else come across that?"

Often. I see old people get talked into establishing a living trust by a lawyer that advertised or attended some group home meeting or social event, and the trust is an empty shell. No titled or deeded property is put into the trust. I try to explain this and the issues of Transfer On Death and Beneficiary provisions, as opposed to "Let's put it all in a trust, then never follow up."

"just in her name" would be nice...

I recently worked with a couple, both on their third marriage (he's 91, she's mid-80s), and they both have bonds jointly named with the old dead spouse(s) and not the current spouse.