An Executor is named in the last will and testament of a decedent. If an Executor is not named, the court will appoint an Administrator with will annexed.
To ensure an Executor carries out their duties, the court might require the Executor to get bonded with an Executor Bond.
If the will states a bond is not required, the court still might require one. Common situations where this might happen include if the Executor or Administrator with will annexed is a non-resident of the state having jurisdiction over the estate. (See more: Does Your Will Executor Need To Be Bonded?)
What is an Executor Bond?
An Executor Bond is a type of surety bond that guarantees the Executor will administer the estate according to law.
An Executor Bond gives beneficiaries peace of mind, reassuring them that even if the Executor somehow loses or mishandles the estate’s assets, the bond will protect them and they will be compensated.
Executor Bonds are also known as Probate or Fiduciary Bonds.
How Does an Executor Bond Work?
Executor Bonds are in place to ensure the Executor performs their duties according to law.
Executor Bonds can protect against any potential fraud, errors, negligence, theft, or misrepresentation perpetrated by the Executor of the estate.
- If the Executor fails to fulfill their duties, beneficiaries can make a claim against the Executor Bond. If the claim is determined to be valid, the beneficiaries will be financially compensated.
- Who compensates the beneficiaries? First, the surety bond company who issued the Executor Bond. But after the surety company pays, they will go to the Executor for reimbursement.
The Executor is responsible for repaying every single penny the surety company pays out on a claim. This is why it is important to follow your duties as an Executor.
How Much Does an Executor Bond Cost?
The amount of your Executor Bond will depend on the value of the estate and the court, if a court is involved. You do not need to pay the full bond amount to get bonded. You will just pay a small percentage of the bond amount. The percentage you pay largely depends on your personal credit score.
The best way to see what you’d pay is to get a free quote.
Getting an Executor Bond
If the will states a bond is not required, the court still might require one. Common situations where this might happen include if the Executor or Administrator with will annexed is a non-resident of the state having jurisdiction over the estate. (See more: Does Your Will Executor Need To Be Bonded?)
If the court requires you to get an Executor Bond, you first need to apply with a surety bond company to get your bond. Applying for a bond can usually be done online. The surety company will require a credit check and might need information regarding court documents.
Once you’ve been approved for your bond, the last thing to do is sign the indemnity agreement and pay.
Executor duties are normally fulfilled within a year; the bond can be canceled, or exonerated, at that time by the court.
If you need an Executor Bond, Surety Solutions can help. We have multiple markets to get you bonded. We even let you see how much you’d pay for your bond before you commit.
See what you’ll pay for an Executor Bond
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