Probate Court Bond Cancellation: What Bond Principals Need to Know
Probate court bonds are required by probate courts in many circumstances when someone dies or needs guardianship. These bonds provide protection for the interests of the deceased person’s heirs and beneficiaries or the ward in the case of guardianship. Most of these bonds renew annually, but many bond principals may not be aware of the specifics of their bond, including the process of cancellation.
Only the Court Can Cancel the Bond
Once accepted by the court, only the court can cancel the bond. Even if the bond principal, attorney, or agent wants to cancel the bond, it’s not possible under law until the court cancels it. Even the insurance carrier cannot cancel it. This means that if you don’t pay the renewal, the bond stays in effect, and the court can still order the bond payable and make a claim against it. Failure to pay can lead to the insurance carrier putting your account in collections, which can affect your personal credit history.
Challenges with Canceling a Bond
At times, bond principals may have cases where the ward died, or the account balances are zero $0, and everything has been paid out, but the court has still not discharged the bond. Bond principals may call to “cancel a bond,” but they become very frustrated when they’re told they can’t. This is because, even though the estate is $0, it’s possible the court can still order the bond payable until they cancel it. This is why bond premiums need to be paid on renewal.
Renewal Deadlines and Proactive Action
It’s important to note that bond carriers may have a 60-day grace period, and bond premiums on renewal terms are usually pro-rated and refunded. However, bond principals should always be proactive and ensure that they understand the specific terms of their bond and renewal deadlines to avoid complications.
In Conclusion
In conclusion, probate court bonds provide important protection for the interests of the deceased person’s heirs and beneficiaries or the ward in the case of guardianship. However, bond principals need to understand the specifics of their bond and the cancellation process. Once accepted by the court, only the court can cancel the bond. This means that bond principals must stay on top of their renewal deadlines and pay their premiums to avoid complications.
How to apply for a probate court 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 probate bond or Download PDF Probate Bond Application.
