Courts sometimes require executors to post a bond to protect the estate. Here is what it means for heirs and executors.
A probate bond (also called an executor bond or fiduciary bond) is a type of surety bond that guarantees the executor will fulfill their duties honestly. If the executor mismanages estate funds or steals assets, the bond provides financial protection for beneficiaries.
Many wills include a provision waiving the bond requirement. If the will doesn't waive it, or if there's no will, most courts require one. Courts may also require a bond when the executor lives out of state, when beneficiaries include minors, or when a beneficiary requests one.
The bond amount is typically set equal to the estate's asset value. The executor pays an annual premium of 0.5% to 1% — so a $500,000 estate might cost $2,500 to $5,000 per year. This is paid from estate funds, not personally.
A beneficiary can file a claim against the bond. The surety company investigates and, if valid, pays beneficiaries up to the bond amount, then seeks reimbursement from the executor personally.
A probate bond provides peace of mind — your inheritance is protected even if the executor acts improperly. The downside is that premiums reduce the estate's value slightly, and obtaining a bond can add time to the process.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
If the court requires one and the executor cannot obtain it, the court won't appoint them. Another person would need to serve.
No. It protects against financial misconduct only. For delays, beneficiaries can petition the court to compel action.
The premium is paid from estate funds as a legitimate expense, typically 0.5-1% of the bond amount per year.
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