post-obit bond

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Explanation of "Post-Obit Bond"

Definition: A "post-obit bond" is a kind of legal agreement (or bond) that someone makes to borrow money. This bond is specifically for a person who will pay back the money after they receive an inheritance when someone else (like a family member) passes away. In simpler terms, it’s a promise to pay back a loan from money that you will get in the future when someone dies.

Usage Instructions

• Context: This term is often used in legal and financial discussions, especially relating to inheritance and loans.
• When to use: You would use "post-obit bond" when talking about borrowing money with the expectation of paying it back from an inheritance.

Example

• "John took out a post-obit bond to help pay for his education, knowing he would inherit some money from his grandfather's estate after he passed away."

Advanced Usage

In more advanced discussions, you might encounter post-obit bonds in the context of estate planning, finance, or legal strategies for managing debts and assets in anticipation of future inheritances.

Word Variants

• Post-obit: This part of the term refers to "after death," which is significant in understanding the context of the bond.
• Bond: This can refer to various types of bonds in finance, but in this case, it specifically refers to the legal promise to pay.

Different Meanings

While "post-obit bond" has a specific legal and financial meaning, the components of the phrase can have other meanings: - Post-obit: Generally means something that occurs after someone's death. - Bond: Can also mean a connection between people or a legal contract in different contexts.

Synonyms

There are no direct synonyms for "post-obit bond," but similar concepts in finance include: - Loan: A sum of money borrowed that is expected to be paid back with interest. - Mortgage: A specific type of loan for buying property, secured by the property itself.

Idioms and Phrasal Verbs

While there are no direct idioms or phrasal verbs specifically related to "post-obit bond," you might come across phrases like: - "Pay your dues": This means to fulfill your obligations, which could relate to repaying a bond or loan. - "In the long run": This phrase can imply that something will pay off in the future, similar to the expectation of receiving an inheritance.

Summary

In summary, a "post-obit bond" is a financial agreement to borrow money with the understanding that it will be paid back after receiving an inheritance.

Academic

Noun

1. a bond made by a reversioner to secure a loan; payable out of his reversion