A probate bond is a type of fiduciary bond that is required to be obtained by individuals who will be acting on behalf of a deceased person. The bond ensures that it protects the heirs from any misappropriation of the assets.
How It Works
When it comes to probate bonds, there are three parties involved. Let’s discuss them to give you a better idea:
This is the individual responsible to carry out the distribution of the asset. However, they might make mistakes in the process. The probate bond will ensure that the beneficiaries do not suffer.
Heirs are people who stand to gain from the distribution of assets. If the executor has acquired a probate bond, they do not need to worry as they will be given their fair share no matter what.
A probate bond also protects the creditors. With a probate bond, they can be sure that even if the executor does not pay them, the bond company will.
Types of Probate Bonds
Here are a few common types of probate bonds:
Guardianship Probate Bonds
When a person dies leaving behind children and no surviving spouse, a guardian has to be appointed to make sure that when the children come of age, they will be given their due share. However, if the person has not left a will, or if the will is invalid, the court has to assign a guardian.
This guardian has to acquire a guardianship probate bond. This bond ensures that the guardian will honestly distribute assets among the decedent’s children.
These bonds are also applicable to the guardians of the elderly and the disabled.
Executor Probate Bonds
The executor of the estate is responsible to manage the affairs of the deceased person’s affairs. From creditor’s debts to probate taxes, each aspect of the decedent’s estate has to be managed.
If there’s no will, the executor will have to buy the probate bond. This type of bond will guarantee that he/she will carry out the duties fairly and responsibly.
Testamentary Trustee Bond
Sometimes, a person might create a trust that will become applicable when he/she dies. In this case, a trustee has to be appointed by the court who will be managing the financial affairs of the trust. The testamentary trustee bond ensures that the trustee acts in accordance with the trust agreement and that the beneficiaries get their rightful assets.
With a team of savvy professionals, we at BondPro issue probate bonds across 50 states of the US. Our surety bond company deals with all the different aspects, including underwriting, application preparation, etc., of the bonding process. Contact us to learn more about us.