What Is a Probate Bond?

Executor Bonds

For most people, naming an executor is a key part of creating a last will and testament. The executor of the will is the person appointed to carry out the testator's wishes as described in the will. Spouses, children, and siblings are all often appointed as executors, but nearly any person over 18 can typically be appointed as executor by the testator (although some state laws specifically exclude those convicted of a felony).

Being the executor of a will grants an individual the legal authority to perform tasks such as distributing property and paying off debts for the deceased. Requirements such as settling of debts and estate taxes must be taken seriously, and an executor bond provides a financial guarantee that these tasks will be performed and executed faithfully.

The testator may decide to add a probate bond waiver to their will, freeing the executor from the responsibility of obtaining an executor surety bond. Waiving the executor bond is usually done when the executor is someone, such as a spouse or child, that the testator trusts completely. If the will does not specify whether or not an executor bond is required, the probate court can choose whether or not to require one.

The bond amount of an executor bond is set by the court or by the will and is usually determined by the value of the testator's estate. The premium that the executor pays, however, is also affected by several factors, including the principal's credit and financial history. Finally, different states have different laws regulating executor bonds, so be sure that the bond you need matches your state's laws by entering the correct state when requesting a probate bond quote from Surety Bonds Direct.

Administrator Bonds

Sometimes, an individual dies "intestate" or without a will. Other times, a testator leaves a will that does not name an executor. In still other cases, an executor declines to serve or dies before the testator does, and the testator does not name a replacement. In these cases, the probate court will often appoint an administrator to handle the estate. Typically, the deceased's surviving family is asked to name an administrator; if the family cannot agree on an individual, the probate court will appoint one.

An administrator performs similar functions as an executor and controls any assets of the estate. Administrators are responsible for paying the deceased's debts, making funeral arrangements for the deceased and distributing any remaining assets of the estate. Requirements for administrators vary widely among U.S. states and are determined by each state's laws of intestate succession.

An administrator surety bond serves a similar purpose to an executor bond. Administrator bonds guarantee that the administrator will fulfill their legal and ethical duty in settling the debts and distributing the assets of the deceased individual. Much like an executor bond, the probate court will set a required bond amount for an administrator bond.

Guardianship Bonds

What is a Guardianship Bond? Many individuals use their wills to establish who will take care of their minor children or other dependents, such as people with disabilities, after the testator passes away. Establishing legal guardianship of a minor or a disabled person is another legal process that's carried out through probate court. Since the guardianship process gives the legal guardian considerable power over a potentially vulnerable person and over their finances, the guardian is often required to obtain a surety bond for guardianship.

Guardianship surety bonds, which can also be called conservator bonds or custodial bonds, ensure that the legal guardian will fulfill their legal duties and behave ethically. Like other types of probate bonds, the cost of a guardianship bond can vary greatly by state law, by the bond amount imposed by the probate court, by the size of the testator's estate, and by the circumstances of the minor or incapacitated individual. To get an easy two-minute quote for your guardianship bond, contact Surety Bonds Direct today.

Trustee Bonds

A trust is a different kind of legal construct for managing a person's assets after they die. A person who creates a trust is called the trustor or grantor, and the individual who takes control of their assets is called the trustee.

Trusts are similar to wills but have a few important differences. Some types of trusts transfer property directly to a beneficiary upon the trustor's death or even before, bypassing probate court entirely. However, trusts also have their limitations, such as the inability to specify care arrangements for a minor child or a disabled adult.

Numerous different options are available for creating a trust, including revocable trusts, irrevocable trusts, charitable trusts, special needs trusts, and many others. Anyone thinking of forming a trust or who may become a trustee should be sure to learn the details of their obligations under the specific type of trust before they take on their responsibilities as trustor or trustee.

Because trusts offer some advantages in simplifying the probate process, they are a popular option for many individuals when making end-of-life plans. However, it's important to plan a trust with the assistance of an estate planner or probate attorney so that everyone involved understands the precise conditions and legal requirements of the trust.

To take control of a trust, a trustee may first be required to get a trustee surety bond. Like other types of fiduciary bonds, a trustee bond guarantees that the trustee will faithfully execute the conditions specified by the law and by the trustor's instructions and will not engage in dishonest or deceptive practices. Surety Bonds Direct offers quick and affordable online quotes for trustee bonds.