Despite recent tax reform effects on demand for estate planning securities, several individual investors are still utilizing survivor’s option bonds as means to transfer wealth to beneficiaries, particularly in a potentially rising rate environment. Knowing the guidelines of these securities is important.

Individual or “retail” investors planning for their heirs’ inheritance generally look to insurance packages for such features, but the bond market can also offer an attractive strategy to plan for passing on wealth to beneficiaries. Survivor’s options present an opportunity for such investors exploring ways to manage their estates effectively and efficiently. In this report, we will focus on the benefits and considerations of survivor’s options in the context of corporate bonds, though note that some bonds issued by government-sponsored entities (GSEs) and most FDIC-insured certificates of deposit also offer these options.

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Jody Lurie

Sr. Fixed Income Portfolio Consultant

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