Purchasing a probate court bond is not like shopping for car insurance. Many clients already have an insurance agent who offers surety bonds, or their attorney does. However, working with an agent who has access to multiple bonding companies is essential. A probate bond specialist can help you find the best option for each bond without steering you toward the one that pays the highest commission.
1. Choose a Bond Under $22,000 to Avoid Annual Renewal Fees
The minimum cost for most Administrator, Executor, or Personal Representative bonds starts at $100 per year. This applies to any bond with a penalty amount up to $40,000, which is why attorneys and courts often request bonds at that level. It makes sense—more coverage for the same cost sounds appealing.
However, some bonding companies offer a flat-rate, non-renewable option for bonds with a penalty amount under $22,000. This means no annual renewal fees. If you are handling a personal injury or wrongful death case that could involve years of litigation, keeping the bond below this threshold could save your client a significant amount.
(Note: This does not apply to guardianship bonds, which always renew annually.)
2. Prepay for Multiple Years to Get Big Discounts
Bonding companies must pro-rate renewal terms after the first year. This means prepaying for multiple years can lead to significant savings. If the case resolves earlier than expected, any unused premium is refunded.
Sample Guardianship Bond Pre-Payment Savings
| Bond Penalty | Cost per Year | Number of Years | Cost, Paid Annually | Prepaid Cost | Savings |
|---|---|---|---|---|---|
| $200,000 | $500 | 10 | $5,000 | $3,600 | $1,400 |
This applies to all probate bonds, including Administrator, Executor, Personal Representative, and Guardianship Bonds. Some bonds only renew for three terms before renewals stop, so it’s always good to check.
3. Lower the Bond Penalty When Possible
If a case extends beyond one year, review whether the estate’s accounting has reduced the amount of bond required. Courts do not always adjust bond requirements automatically, but they will if requested.
For bonds at or below the $40,000 minimum, this won’t make a difference. However, if an estate started with $500,000 in assets and has now spent down to $40,000, lowering the bond amount could lead to substantial savings.
How to Get the Best Price on Probate and Guardianship Bonds?
Because our agency writes a high volume of probate bonds, we have multiple in-house bonding companies and partnerships with specialized bonding brokers. This allows us to find the best rates, even for more complex cases.
Prices can vary widely. For example, the premium for a $200,000 bond can range from $480 per year on the low end to $1,620 per year on the high end. We always aim to keep clients at the lowest available rate.
