Probate Bonds

A probate bond is a type of surety bond required by the court when an individual is appointed to oversee the estate of a person who has passed. This bond serves as a financial guarantee that you as the fiduciary will manage the estate properly, pay debts, and distribute assets to the rightful beneficiaries as intended.

A probate bond may be required in several situations:

• Named in a Will: If the deceased has left a will, they may have named an executor or personal representative to manage their estate. This individual may be required by a court or by the will itself to obtain a probate bond before they can begin their duties.
• No Named Executor: If there is no named executor, or the named executor is unable or unwilling to serve, the court may appoint a fiduciary to manage the estate. In this case, the court typically requires the appointed fiduciary to secure a probate bond.
• Absence of Close Relatives: When no spouse or child will take on the estate, the court may appoint an unrelated fiduciary. The court will usually require this individual to obtain a probate bond to ensure the estate is handled correctly.

Probate Bond Cost

The cost of a probate bond is based on the estimated worth of the estate and your credit history. In general, probate bonds less than $200,000 will cost between $150 to $1,700. For probate bonds more than $200,000, you can expect to pay more than $1,700.

How Probate Bonds Work

The primary purpose of a probate bond is to protect the estate's beneficiaries. There are three parties involved in a probate bond:

1. Principal: Executor or administrator taking on the fiduciary role
2. Obligee: Probate court
3. Surety: Company issuing the bond

In the event of mismanagement, fraud, or negligence on your part, the bond provides financial recourse for the beneficiaries, allowing them to recover lost funds. The company that issued your bond will make the payment and then require you to reimburse them plus court costs using your personal or corporate assets.

As the principal, you pledge your personal or corporate assets as payment if a claim is made against the bond. These costs can include the entirety of the bond amount plus court costs.

Unlike other bond types, a probate and estate bond are not cancellable.

Probate Bond Requirements

To purchase a probate bond, complete our application, agree to a credit check (if applicable), and submit the following documents:

• The relevant court documents related to the will and the estate
• Personal financial statements
• List of assets in the estate

Get Your Probate Bond Today

NNA Surety makes it easy to get your probate bond. Call 855-785-3598 or complete our form to get your probate bond today.