When a court appoints someone to manage an estate after a person dies, that person is often required to post a probate bond. This bond protects the estate, heirs, and creditors by guaranteeing that the executor or administrator will carry out their responsibilities honestly and according to the law. If mistakes or misconduct occur, the bond can provide financial recovery.
What Is a Probate Bond
A probate bond is a type of surety bond issued by an insurance company. It serves as a form of financial protection for the estate. If the executor or administrator mishandles funds or property, the bond company may pay for the loss and then seek reimbursement from the bond holder.
Probate bonds are sometimes called executor bonds, administrator bonds, or fiduciary bonds. They all serve the same purpose. The name may vary depending on whether the estate has a will and the title given to the person in charge.
When a Probate Bond Is Required
A probate bond is typically required when:
- There is no will
- The will does not waive the bond requirement
- The appointed executor lives out of state
- The heirs request one for added protection
- The court decides a bond is in the estate’s best interest
Some wills explicitly state that no bond is needed. If that is the case and all heirs agree, the court may waive the bond. However, courts can still require one if they feel it is necessary.
How the Bond Amount Is Set
The probate court sets the bond amount. In many states, the bond is based on the value of the personal property in the estate plus any income the estate is expected to generate. Real estate is usually not included unless it will be sold during probate.
For example, if an estate includes $150,000 in bank accounts and investments, the court may require a bond for that amount or more. If the estate is large or complex, the bond could be higher.
How to Get a Probate Bond
You can apply for a probate bond through a licensed surety company or bonding agency. Many providers now offer fast online applications. The process includes a credit check and a review of your role in the estate. If approved, the bond is issued and filed with the court.
To get started or check your eligibility, you can apply online for a probate bond. Many bonds are issued the same day, and pricing is based on the bond amount and your credit history.
Do You Have to Pay for the Bond
Yes. The bond premium is a one-time fee paid by the executor or administrator. It is not refundable, but it can often be paid from the estate. Premiums vary by provider and bond size. Many people find the cost reasonable, especially considering the protection it provides to beneficiaries and the estate.
Final Thoughts
If the court requires a bond, do not worry. It is a common part of the probate process and helps ensure the estate is handled properly. With the right information and a simple application, you can usually get a bond quickly and move forward with your duties. Always check your court documents to confirm whether a bond is needed and what amount has been ordered.
