Post Obit Bond - Definition - Law Dictionary

Definition :

Post-obit Bond. A bond, conditioned to be void on the payment by the obligor of a sum of money upon the death of another person. in most cases the person upon whose death it is so payable is one from whom the obligor expects to derive some property. Post-obit bonds, and other securities of a like nature, are set aside, when made by heirs and expectants, as frauds upon the parents and other ancestors, unless the person dealing with such heir can prove satisfactorily that the stipulated payment is not more than a just indemnity for the hazard. Even the sale of a post-obit bond at public auction will not necessarily give it validity, or free it from the imputation of being obtained under the pressure of necessity. See BOND; EXPECTANT HEIR.