Also known as fiduciary, estate, or executor bond, a probate bond is a type of court bond. The bond is a guarantee that a legal proceeding will be executed fairly.
When an individual dies, they usually leave behind a will. A probate bond is designed to make sure that the deceased individual’s wants are carried out honestly (as expressed in the will). In other words, the bond protects the deceased person’s estate from fraud or negligence. The question is: who purchases and requires the bond? Here’s everything you ever needed to know about probate bonds:
Who Needs it?
Generally speaking, a will executor purchases a probate bond from a surety agency to demonstrate that they can distribute a property, assets, or valuables amongst the rightful heirs, as stated in a will.
If the executor is unable to do that, the beneficiaries can file a claim against the executor. The surety agency will offer financial compensation on behalf of the executor to the beneficiaries. However, the agency will be reimbursed by the executor later.
Is It Always Required?
In some cases, a will may state that a probate bond is not required. Additionally, the bond won’t be needed when a financial institution is appointed the acting fiduciary.
However, the court determines whether or not a probate bond is needed.
What is Its Purpose?
Contrary to popular opinion, a probate bond isn’t designed to protect the interests of executors. In fact, the bond protects the heirs of an estate.
How Much Does It Cost?
As probate bonds are riskier than other surety bonds, they come at a high price as well as stricter terms and conditions.
Certain factors, such as an executor’s financial credibility, credit worthiness (credit score), the amount of coverage needed, etc. influence the cost of the bond.
In most cases, it can be secured at 1-10 percent of the bond amount. That being said, the court determines the actual bond amount.
Where Can You Purchase A Probate Bond?
If you need a probate bond, it is imperative to contact a reputable, experienced surety agency. At BondPro, Inc., we provide probate bonds at great rates in all 50 states.
Knowing how court proceedings work, our team of probate bond agents can underwrite probate bonds in a quick, efficient, and smooth manner.
Contact us today for a free online probate bond quote. Once you fill out the application and give us all the details, we will start the underwriting process so that you can get the bond in no time.