Tuesday, October 27, 2009

What is a Flower Bond?

The Power of Attorney for Finance forms I prepare for my clients includes the authority for the named agent to deal with issues related to "flower bonds". Every now and then I have a client who asks, what is a "flower bond". Here is a great definition:

Any of a limited series of U.S. government bonds that may be used at par to pay federal estate taxes. The bond is unique because there is no minimum time for which it must be held; further, its holder does not have to wait until maturity to use it at par for paying the tax. Flower bonds have not been issued since 1971.

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