Probate Bonds

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Learn more about probate bonds below, and contact us today to request a quote.  If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

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What Are Probate Bonds?

Probate bonds are a type of court bond that is required when someone is appointed by a probate court to a position that carries fiduciary responsibilities. Probate courts have jurisdiction in matters involving one person’s disbursement or management of assets belonging to someone else. Such fiduciary responsibilities include:

  • Acting in the best interest of the person they’re making decisions for
  • Exercising prudent judgment
  • Making reasonable financial decisions
  • Avoiding conflicts of interest
  • Keeping detailed records of financial transactions

A probate bond serves as a fiduciary’s pledge to carry out appointed duties lawfully and ethically, in accordance with the terms of the surety bond agreement and the legal document(s) governing the fiduciary relationship. The bond ensures that funds will be available for paying damages to any party harmed financially by the fiduciary’s violation of those terms.

Who Needs Them?

The fiduciary roles typically requiring a probate bond include:

  • An executor named in a will to pay off a decedent’s creditors and distribute assets to beneficiaries
  • An administrator appointed by the probate court to disperse the assets of a person who died intestate (without a will)
  • A trustee named to manage a trust established by a decedent’s will for the benefit of heirs or other beneficiaries
  • A guardian of a minor
  • A custodian of an incapacitated adult

Any of these fiduciaries can be required to purchase a probate bond, typically in an amount equal to the value of the estate.

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Learn more about probate bonds below, and contact us today to request a quote.  If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

CONTACT US FOR A

FREE PROBATE BOND QUOTE

What Are Probate Bonds?

Probate bonds are a type of court bond that is required when someone is appointed by a probate court to a position that carries fiduciary responsibilities. Probate courts have jurisdiction in matters involving one person’s disbursement or management of assets belonging to someone else. Such fiduciary responsibilities include:

  • Acting in the best interest of the person they’re making decisions for
  • Exercising prudent judgment
  • Making reasonable financial decisions
  • Avoiding conflicts of interest
  • Keeping detailed records of financial transactions

A probate bond serves as a fiduciary’s pledge to carry out appointed duties lawfully and ethically, in accordance with the terms of the surety bond agreement and the legal document(s) governing the fiduciary relationship. The bond ensures that funds will be available for paying damages to any party harmed financially by the fiduciary’s violation of those terms.

How Do Probate Bonds Work?

A probate bond is a legally binding contract among three parties: the “obligee,” the “principal,” and the “surety.”

  • The obligee is the probate court requiring the bond.
  • The principal is the fiduciary required to purchase the bond.
  • The surety is the company that issues the probate bond.

When the principal is held liable for a financial loss to the estate, the injured party can file a claim for damages against the probate bond (or have a claim filed on their behalf). The surety may try to negotiate an amicable settlement, but often that is not possible.

The terms of the probate bond agreement make the principal legally responsible for paying all valid claims. But in practice, the surety will pay the claim on behalf of the principal, who must then repay the surety for that debt.

What Do They Cost?

In selling a probate bond, the surety is agreeing to extend credit to the principal for the purpose of paying claims. Therefore, the surety will establish a premium rate based on an assessment of the risk of non-repayment. The primary factor that underwriters will consider is the principal’s personal credit score. The better the principal’s credit, the lower the premium rate, potentially as low as 1%.

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Request a quote online or call today to speak with one of our surety bond experts about obtaining a probate bond.