Filing a probate bond (also known as a fiduciary bond or executor bond) is a process required by a probate court to ensure that an executor, administrator, or other fiduciary fulfills their duties honestly and responsibly. If they fail to do so, the bond protects the estate’s beneficiaries. Here’s how to file one:
What is Probate? A Complete Guide to Understanding the Process
Steps to File a Probate Bond
- Determine if a Bond is Required
- The will may waive the bond requirement for the executor.
- If there’s no will (intestate), or if the court mandates it, you’ll need a bond.
- Some states require bonds unless all beneficiaries agree to waive it.
- Calculate the Bond Amount
- The court usually sets the bond amount based on the estate’s value (often 1.5x the estate’s estimated assets).
- Example: If the estate is worth 100,000, the bond might be 150,000.
- Obtain the Bond from a Surety Company
- Contact a surety bond provider (often through an insurance or bonding agency).
- The fiduciary (executor/administrator) applies and pays a premium (typically 1-3% of the bond amount).
- The surety company may require a credit check or collateral.
- Submit the Bond to the Probate Court
- File the original signed bond with the probate court where the estate is being administered.
- Include any required court forms (e.g., Petition for Probate, Letters Testamentary).
- Pay any court filing fees.
- Court Approval
- The judge reviews the bond and approves it if everything is in order.
- Once approved, the executor can proceed with their duties.
- Maintain the Bond
- The bond remains in effect until the estate is closed.
- If the fiduciary mismanages the estate, a claim can be filed against the bond.
Where to Get a Probate Bond
- Surety companies (e.g., Liberty Mutual, The Hartford, or local providers).
- Insurance agents (many work with surety bond providers).
- Online bond services (e.g., SuretyBonds.com, BondExchange.com).
Cost of a Probate Bond
- Premiums are typically 1-3% of the bond amount annually.
- Example: A 150,000 bond might cost 1,500–$4,500 per year
What Happens if the Bond is Claimed?
- If the executor commits fraud or mismanages funds, beneficiaries can file a claim.
- The surety company investigates and pays valid claims, then seeks reimbursement from the executor.
Would you like help finding a bond provider in your state? Let me know, and I can guide you further!
