flower bond

plural flower bonds

1. UShistoricalbusinessA Treasury bond that could be purchased at less than face value, but upon the holder's death could be redeemed for full face value for the purpose of paying federal estate taxes.

   In several cases, the Internal Revenue Service argued that the decedent on whose behalf an agent bought a flower bond was past the point of capacity at the time of the purchase, although no adjudication so established.

   2003, Sarah Worthington, Commercial Law and Commercial Practice, page 77