Should interest rates increase substantially, the put may earn a large profit for beneficiaries of the estate. A death put option allows the estate manager to sell bonds that the decedent owned to pay off debts and estate taxes. Death put options bonds 667 are no more flower bonds, but the private sector has come up with something bojds. A put is an option granting the holder the right to sell. Depending on what you paid for the death put bond and the current interest rate environment, your estate could make a nice profit by exercising the death put option.
A:A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal on the bond. A put option gives the bond holder the ability to receive the principal of the bond whenever they want before maturity for whatever reason. If the bond holder feels that the prospects of the company are weakening, which could lower its ability to pay off its debts, they can simply force the issuerer to repurchase their bond through the put provision.
I have found eeath they are difficult to process after death. It has to go directly back to the issuer with their own documents.
Death put options bonds 667