A probate bond, also known as an estate bond or fiduciary bond, is a type of surety bond required by the court before appointing a person or entity as the personal representative of an estate, such as an executor or administrator. The primary purpose of a probate bond is to hold the appointed individual accountable and liable, ensuring they perform their duties in good faith and in accordance with the law.

Key Features of Probate Bonds:

1. Financial Guarantee: Provides a financial guarantee that the executor or administrator will fulfill their duties honestly and according to the law.

2. Protection for Beneficiaries: Protects the beneficiaries of an estate from potential misconduct or errors by the executor or administrator.

3. Coverage for Mismanagement: If the executor or administrator mismanages the estate or fails to fulfill their duties appropriately, a claim can be made against the bond.

When Are Probate Bonds Required?

Probate bonds are typically required by the court before the executor or administrator can begin managing the estate. The court wants to ensure that the estate’s assets are protected and that the executor will fulfill their fiduciary duties. A bond is often required if the executor is not a close family member or if the will does not specifically waive the bond requirement.

Cost of Probate Bonds:

The cost of a probate bond depends on the value of the estate being managed. Typically, the premium for a probate bond ranges from 0.5% to 1% of the estate’s total value. The executor must pay for the bond out of pocket initially, but they can be reimbursed by the estate once probate is opened.