New Jersey Probate Bonds,
Handled Simply.

Probate in New Jersey is shared between the Surrogate's Court and the Superior Court, Chancery Division, Probate Part. Each of the state's 21 counties has its own Surrogate's Court, led by an elected Surrogate, which handles uncontested probate, admits wills, and appoints executors and administrators. When a matter is contested or doubtful, it transfers to the Superior Court Probate Part.

New Jersey is not a Uniform Probate Code state. It administers estates under Title 3B of the Revised Statutes. The estate fiduciary is an executor when named in a will and an administrator when appointed without one, and both are personal representatives. The bond rules sit in NJSA 3B:15-1 and the sections that follow.

New Jersey eliminated its separate estate tax for deaths on or after January 1, 2018, but it keeps an inheritance tax based on the beneficiary's relationship to the decedent. Class A beneficiaries, including a spouse, domestic partner, children, grandchildren, and parents, are exempt. Class C beneficiaries, such as siblings, have a $25,000 exemption and then pay 11 to 16 percent. Class D beneficiaries, more distant relatives and unrelated heirs, pay 15 to 16 percent with only a minimal exemption. A tax waiver from the state is often needed to release certain assets.

When a New Jersey bond is required, the amount is set under NJSA 3B:15-1:

• Value of the estate: The bond is set in a sum that reflects the full value of the estate under the fiduciary's control, having due regard to the value of the estate and the extent of the fiduciary's authority.
• Surrogate sets it: The Surrogate's Court sets the specific amount for each case and approves the sureties.
• Adjustable: The court may increase or decrease the bond on request of an interested party or at its own discretion, and may require additional surety under NJSA 3B:15-9 if the original bond becomes insufficient.
• Premium reimbursable: Under NJSA 3B:15-8, the fiduciary may petition for reimbursement of the bond premium from the estate when filing the accounting.

New Jersey's bond rule turns on whether there is a will. Under NJSA 3B:15-1:

• Executors usually exempt: An executor named in a will generally serves without bond, because naming the executor is treated as the testator's expression of trust. A will may also expressly waive bond.
• Administrators usually bonded: An administrator appointed for an intestate estate is generally required to furnish a bond to the Superior Court to secure faithful performance.
• Surviving spouse exception: No bond is required of an administrator who is the surviving spouse where the decedent's entire estate is payable to that spouse.
• Nonresident executor: A bond is required of a nonresident executor, except where the will provides that no security shall be required of the named executor.
• Ronnie's Law: Under NJSA 3B:15-1(i), an executor must post a bond when a beneficiary has a developmental disability, unless an exemption applies, such as a court-appointed guardian, a family member within the third degree, or an estate of $25,000 or less.

Qualifying in a New Jersey estate follows Title 3B and Surrogate's Court practice:

• Wait until the 11th day: A will cannot be admitted to probate until the 11th day after death, though the executor may begin the filing and qualification steps earlier.
• Filed with the Surrogate: When a bond is required, it is furnished to the Superior Court and filed with the county Surrogate, who sets the amount and approves the sureties before issuing letters.
• Right county: The matter is opened with the Surrogate's Court in the county where the decedent resided at death.
• Service of process: Every fiduciary executes an authorization allowing the Surrogate to accept service of process on the fiduciary's behalf.
• Refunding bond at distribution: Separate from the fiduciary bond, each beneficiary signs a Refunding Bond and Release under NJSA 3B:23-24 before receiving a share, which is filed with the Surrogate as a record of the distribution.
• Bond stays in force: When required, the fiduciary bond remains in effect until the estate is settled and the court discharges the fiduciary.

When a New Jersey bond is required, the cost is a premium paid to the surety company. Many testate estates need no fiduciary bond at all, since executors are generally exempt.

• Typical rate range: Most New Jersey probate bonds are priced at roughly 0.5% to 1% of the bond amount per year for well-qualified applicants. A $100,000 bond commonly costs between $500 and $1,000 per year.
• Tiered pricing: Rates often step down as the bond grows, so larger estates pay a lower effective rate on the amount above the first tier.
• Minimum premium: Many sureties apply a minimum premium of about $85 to $150 for small bonds.
• Credit impact: Applicants with strong credit qualify for the lowest rates. Applicants with weaker credit may pay a higher rate or be asked for collateral.
• Annual renewal: New Jersey estates can stay open across more than one year, so the premium is charged annually until the court discharges the fiduciary.
• Premium reimbursable: Under NJSA 3B:15-8, the fiduciary may seek reimbursement of the premium from the estate when filing the accounting.

Beyond the standard fiduciary bond, New Jersey probate practice uses several additional bond types:

• Administrator Bond: The bond of an administrator of an intestate estate, generally required to secure faithful performance, with the amount tied to the value of the estate.
• Administrator With Will Annexed Bond: The bond of an administrator appointed to carry out a will when no named executor serves.
• Nonresident Executor Bond: The bond required of an executor who lives outside New Jersey, unless the will provides that no security shall be required.
• Refunding Bond and Release: The bond a beneficiary signs under NJSA 3B:23-24 before receiving a distribution, protecting the estate against later claims. It is distinct from the fiduciary bond.
• Guardian Bond: A guardian of the estate of a minor or an incapacitated person is generally required to post a bond tied to the value of the protected estate.

New Jersey does not run a licensing board for private professional fiduciaries, but Title 3B places clear duties on every executor and administrator:

• Fiduciary duty: The executor or administrator must manage the estate in the best interest of the heirs and beneficiaries and can be held personally liable for losses caused by a breach.
• Bond secures performance: Where required, the bond runs to the Superior Court and secures faithful performance of the fiduciary's duties.
• Accountings: The fiduciary files an accounting when required, and an interested party who is owed an accounting may compel one in the Superior Court Probate Part.
• Inheritance tax duties: The fiduciary must address the New Jersey inheritance tax, obtain any required tax waivers to release assets, and account for the tax before distribution.
• Guardians: A guardian of the estate serves under continuing court supervision, files inventories and accounts, and maintains any bond the court sets.

• Atlantic, Surrogate's Court (Mays Landing)
• Bergen, Surrogate's Court (Hackensack)
• Burlington, Surrogate's Court (Mount Holly)
• Camden, Surrogate's Court (Camden)
• Cape May, Surrogate's Court (Cape May Court House)
• Cumberland, Surrogate's Court (Bridgeton)
• Essex, Surrogate's Court (Newark)
• Gloucester, Surrogate's Court (Woodbury)
• Hudson, Surrogate's Court (Jersey City)
• Hunterdon, Surrogate's Court (Flemington)
• Mercer, Surrogate's Court (Trenton)
• Middlesex, Surrogate's Court (New Brunswick)
• Monmouth, Surrogate's Court (Freehold)
• Morris, Surrogate's Court (Morristown)
• Ocean, Surrogate's Court (Toms River)
• Passaic, Surrogate's Court (Paterson)
• Salem, Surrogate's Court (Salem)
• Somerset, Surrogate's Court (Somerville)
• Sussex, Surrogate's Court (Newton)
• Union, Surrogate's Court (Elizabeth)
• Warren, Surrogate's Court (Belvidere)