Attorneys frequently request specific bond amounts based on what they think is the minimum required amount, but often lack the full knowledge of probate bond minimums and requirements. These arbitrary amounts or statements such as “give us the minimum” or “just give us a 40k bond” can lead to inappropriate bond requests, higher costs, and other issues that can be easily avoided with proper understanding.
Minimum Penalty
It is essential to note that there are many different minimums for probate court bonds, guardianship bonds, estate bonds, and each carrier is different, with rates and qualifications that can vary widely based on insurance carrier, state of issuance, court, bond penalty amount, and applicant qualifications.
To start, it is important to consider the minimum initial cost. Some of the most aggressive insurance carriers have a Minimum Premium of $100 per year. This means that irrespective of the bond penalty up to a certain amount, the initial cost will always be the same.
Minimum Flat Rate Bond
However, the minimum ongoing cost can be quite different with flat rate bonds, which is another type of “minimum.” For instance, executor bonds or administrator bonds issued for a penalty of $20k or less only need to pay $100 once, and there are no renewal fees. This is useful for probate cases that may continue for more than one year and have real estate involved or need to find heirs.
Moreover, minimum penalty is something else to consider. While you can request a lower bond amount, $10k is the minimum penalty that most carriers will issue a bond. Still, probate bond applicant qualifications and experience required are different, based on the penalty amount.
Court Minimums
Furthermore, some individual magistrates or judges in some jurisdictions set their minimum bonds, which can be higher than what is required according to state rules. This can disqualify some applicants, even if the cost is the same.
Bonding Experience Matters
It is critical to remember that bonding experience matters. While some insurance agents may accommodate client requests and help things roll smoothly, an agent with experience issuing probate bonds can evaluate your needs and explain all the nuances involved with each probate bond request.
Therefore, it is crucial to consult an experienced agent when requesting probate bonds to ensure that you have a full understanding of the minimum requirements, qualifications, and costs for your specific needs.
We can provide names of probate and estate attorneys
At our agency, we understand the importance of having a reliable attorney to assist with guardianship bond cases. If there are funds needing a bond, there are generally funds for an attorney, which are paid for by the estate or ward’s assets and not your own funds. On request, we can provide names of attorneys in your area who have handled guardianship cases and purchased bonds in the past.
How to apply for a guardianship bond
Our agency issues more probate court bonds in a week than most agents do in a year. We offer online applications, quick response times, and the best pricing available. Apply online for a guardianship bond or Download PDF Guardianship Bond Application.
