Purchasing a probate court bond usually isn’t like shopping for car insurance. Many clients already have a relationship with an insurance agent who offers surety bonds, or the attorney does. But working with an agent with access to multiple bonding companies is important.  A probate bond specialist can help you find the right option for every bond, without shoehorning you into their highest commission.

Top 3 Secrets to Save on Probate Court Bonds

1. Probate bond under $22,000 penalty amount

The price for most Administrator, Executor, or Personal Representative Bonds bonds starts at $100 per year. This includes any penalty amount up to $40k. So many attorneys, and even courts, request a $40k bond. I’m not sure why, I guess because getting more for less is always appealing.

However, while probate bonds are always renewable and payable annually, several carriers offer a flat rate for those with penalty amounts under $22k. This means there are never renewal fees due.

If you are handling a personal injury case, or wrongful death action, which might develop into multiple year litigation, having a bond under $22k could save your client a bundle!

(Note this does not apply to guardianship bonds, which always renew annually.)

2. Pre-pay for multiple probate bond terms

Since state-admitted bonding companies are legally required to pro-rate renewal terms after the first year, prepayment is an excellent way to get huge savings.  If the case doesn’t last as long as anticipated, the premium for additional term is pro-rated and refunded.  Who doesn’t like not only a savings, but also a refund?

Sample Guardian Bond Pre-Payment Savings

Guardianship Bond	Discount	Bond Penalty	$200,000
1-5 years	15%	Cost per year	$500
6-7 years	20%	Number of years	10
8-9 years	25%	Cost, Paid Annually	$5,000
10+ years	30%	Cost, Pre-Paid	$3,600
		SAVINGS	$1,400

This applies to all types of probate bonds, including Administrator Bonds, Executor Bonds, Personal Representative Bonds, and Guardianship Bonds.  It’s important to ask the agent, though, some bonds only renew for 3 terms, then there are no renewals due.

Probate bonds are pro-rated after the first year.

Once filed with Court, the first year premium is always fully earned. Amounts paid for time after the first year is often refundable. With many bonding companies, after the first year minimum premium, bonds are pro-rated. This means if a case continues for two and a half years, and the bond was prepaid for 10 years, after the first $100 and 1 year, the remaining amount paid for last seven and a half years will be refunded to client.

3. Lower bond penalty

If a case extends beyond one year, it’s important to evaluate if current accounting reduced amount of bond required. The Court doesn’t always lower bond requirements on it’s own action, but will if requested.

For minimum penalty bonds of $40k and under, this makes no difference.  But if estate has been spent down from $500,000 in assets to $40,000 in assets, the savings will be significant.

How to get the best estate bond or guardian bond price?

Since our agency writes so many probate bonds, we have multiple in-house bonding companies and work with multiple bonding brokers who are sometimes able to help with more difficult situations.  Prices can vary widely.  For example, premium for a $200k penalty bond can vary from $480/year on the low end to $1620/year on the high end. We like to keep clients at the lowest rate possible.

Apply for a Probate Court Bond.