Death Put

What does it mean?
An optional redemption feature on a bond that allows the estate of the bond beneficiary to put the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation.

In Other Words...
The death put may be redeemed at par value, and then all proceeds are deposited into the estate. Should interest rates increase substantially, the put may earn a large profit for beneficiaries of the estate.

Related Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Related Terms
Beneficiary | Flower Bond | Heir | Put Bond

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