Can I Get a Refund on a Probate Court Bond Once It’s Issued?
One of the most common questions we receive is:
“Can I get a refund after the bond has been issued?”
Here’s the short answer:
In most cases, no. The first-year premium is fully earned once the bond is issued. That means the surety company is not required to give any money back, even if the bond is later canceled.
That said, there are a few rare situations where we have been successful in getting a refund approved. These are the exceptions. Not the rule.
When a Refund Might Be Possible
In very specific cases, we’ve helped clients get refunds when certain conditions were met. Here are a few examples.
1. The Bond Was Never Filed with the Court
If the bond was issued but never filed, and the original bond is returned, most surety companies will agree to cancel it and issue a full refund.
This only works if the bond was truly never filed or accepted into the court docket. Once the bond is filed, a refund is usually no longer possible.
2. The Court Later Determines the Bond Was Not Required
Some courts will issue a new order stating the bond was never needed. In rare cases, we have seen courts backdate the discharge to the original filing date or even delete the bond order entirely from the docket.
When that happens, and the original bond is returned to the bonding company, we have had success getting a full refund approved.
But this only works if the bond was never truly active. If the bond was filed and active for any amount of time, then no refund will be issued.
3. The Bond Amount Was Higher Than What the Court Actually Required
Sometimes a bond is issued for a larger amount than what the court ends up approving. For example, a $200,000 bond may have been purchased, but the court later confirms only a $40,000 bond was needed.
In these situations, we may be able to request a refund for the difference, as long as we have written confirmation from the court and approval from the bonding company.
However, if the higher bond amount was active for any length of time, the surety will not issue a refund. Only unused premium for the excess amount can be considered, and even that is rare.
Important Things to Keep in Mind
These refunds are rare. Most bonding companies treat the first-year premium as fully earned the moment the bond is issued. That’s the rule and the terms. If they do issue a refund, it is done as a courtesy. They are not required to offer one.
Renewal premiums are usually handled differently. If a bond is canceled midterm after the first year, most companies will pro-rate the refund based on the number of unused days. But this varies from one surety to another.
Final Thoughts
Work with an experienced probate attorney. A good attorney can help avoid these issues in the first place. Even attorneys can make mistakes if they are working with incomplete or incorrect information about the estate.
If you are in a situation where you think a refund might be possible, contact us.
We’ve helped thousands of people in complex probate bond situations and may be able to help you too.
