Flower Bond

Fixed income products that were originally purchased by investors at a discount for the purpose of paying federal estate taxes upon their maturity.

Investors would purchase these bonds before their death in anticipation of federal estate taxes. If the bondholder passed away, the bonds would mature at par value and be used as payment for the deceased's federal estate taxes.

Also known as estate tax anticipation bonds, the last of these bonds matured in 1998.


Investment dictionary. . 2012.

Look at other dictionaries:

  • flower bond — see bond 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • flower bond — Type of U.S. Savings Bond which may be cashed in at par to pay Federal estate taxes …   Black's law dictionary

  • flower bond — noun : a United States Treasury bond that may be redeemed at face value before maturity if used in settling federal estate taxes …   Useful english dictionary

  • Flower bond — Government bonds that are acceptable at par in payment of federal estate taxes when owned by the decedent at the time of death. The New York Times Financial Glossary …   Financial and business terms

  • flower bond — government bonds that when owned at the time of death are acceptable at par in payment of federal estate taxes. Bloomberg Financial Dictionary …   Financial and business terms

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