Why are surety bonds needed for an estate?
Estate Surety Bonds, also known as Administrator Bonds, Executor Bonds, Fiduciary Bonds or Probate Bonds, are issued to individuals who have been appointed to administer the estates of deceased persons. Upon an individual’s death, a probate court will oversee the estate to ensure that the deceased’s wishes are carried out according to the will. The party named in the will, or appointed by the court to oversee the estate, is referred to as the executor. Executors may be responsible for protecting and disbursing the estate’s assets, contacting beneficiaries and potential heirs, having the estate appraised, and ensuring taxes and debts are paid.
What is an Estate Surety Bond?
This type of court surety bond serves as a safeguard against potential acts of fraud and misrepresentation perpetrated by the executor, as well as the misappropriation of allotted funds. Estate Surety Bonds give family members, heirs and other stakeholders in the estate an avenue of recourse if the executor acts illegally. If the principal (executor) does not comply with the terms of the bond, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
How do I know if I need an Estate Surety Bond?
Individuals should inquire with the court that is overseeing the estate. Depending on what the will specifies, a bond may or may not be required. If a bond is required, you will not be appointed as the official executor until the bond is filed with the court.
What is the bond amount for an Estate Surety Bond?
Amounts for Estate Surety Bonds are established by the courts and vary depending on the estate’s value. Therefore, requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much does an Estate Surety Bond cost?
Pricing for Estate Surety Bonds varies, and your premium will be based on the following factors:
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay 1%-5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 Estate Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Estate Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Estate Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase an Estate Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.