Post-obit

Post-obit (Lat. post obitum, 'after death') is a bond or security given by heirs and others entitled to reversionary interests, whereby, in consideration of a sum of money presently advanced, the debtor binds himself to pay a much larger sum after the death of some person, or of himself. Whenever, as is not unusual, the payment is uncertain, and depends on the obligor outliving somebody else, very high interest is required, or rather a very much larger sum is agreed to be repaid than what is advanced. These are generally usurious bargains; but the obligee or creditor can enforce payment of the full amount; though, if there is a gross case of inadequacy in the proportions amounting to fraud, a court of equity will interfere.