Death Put

DEFINITION of 'Death Put'

An optional redemption feature on a debt instrument allowing the beneficiary of the estate of the deceased to put (sell) the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation. Also known as a "survivor's option".

BREAKING DOWN 'Death Put'

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 TERMS
  1. Life Estate

    A type of estate that only lasts for the lifetime of the beneficiary. ...
  2. Named Beneficiary

    This term refers to any beneficiary named in a will, a trust, ...
  3. Transfer On Death - TOD

    A way of designating beneficiaries to receive your assets at ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Absolute Beneficiary

    A designation of a beneficiary that can not be changed without ...
  6. Primary Beneficiary

    A beneficiary in a will, trust or insurance policy that is first ...
Related Articles
  1. Financial Advisor

    How to Handle Client Beneficiary Designations

    Beneficiary designations are a critical financial planning step that can be easily overlooked. Here's how to ensure they are properly done.
  2. Personal Finance

    Who is a Beneficiary?

    A beneficiary is a person or entity that receives funds, assets, property or other benefits from a trust, will, or life insurance policy.
  3. Retirement

    Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
  4. Financial Advisor

    An Estate Planning Must: Update Your Beneficiaries

    Life changes make it time to rewrite your plan's designations.
  5. Managing Wealth

    Trusts: Prevent Beneficiary Designation Mishaps

    Wills and revocable trusts are the cornerstone of estate planning, learn how you may spend considerable time and money maintaining these documents.
  6. Retirement

    3 Deadlines For Retirement Plan Beneficiaries

    To take full advantage of new RMD regulations, beneficiaries need to take action before important deadlines.
  7. Financial Advisor

    Why Your Will Should Name Designated Beneficiaries

    Find out how to make the tough decisions when it comes to choosing who will receive your assets and how they will be paid out.
  8. Financial Advisor

    Estate Planning for a Surviving Spouse

    Estate planning for surviving spouses can be difficult for a number of reasons, so it's important to have good support and financial advice.
  9. Personal Finance

    Distribution Rules For Inherited Retirement Plan Assets

    If you've recently inherited a retirement plan, you must get to know the rules for distributing the funds.
  10. Retirement

    Top 7 Estate Planning Mistakes

    Many people try to avoid this process altogether, making things difficult for heirs.
RELATED FAQS
  1. Do beneficiaries pay taxes on life insurance?

  2. What are the distribution options for an inherited annuity?

  3. How do I find out for sure that I am the beneficiary of my deceased friend?

  4. What will happen to my father's pension if he never added a second beneficiary?

    My dad worked at a company for 40 years where he had a pension. My mom passed away about a year after ... Read Answer >>
  5. How are contingent beneficiaries informed of a payout?

    Understand how contingent beneficiaries are made aware of a policy payout, and learn what policy owners can do to ensure ... Read Answer >>
  6. What are the pros/cons of naming a trust as the beneficiary of a retirement account?

    This has been the topic of an ongoing debate in the financial community between estate planning attorneys and financial advisors. ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center