Fiduciary Bond Guide (Probate Bond)
What is a Fiduciary Bond? A Simple Fiduciary Bond Definition
Fiduciary bonds are required by a court when you are named as the fiduciary or executor to protect the rightful heirs of an estate. The court requirements will vary by the state, county, township or city where the decedent lived at the time of his death, as probate laws vary by jurisdiction. If you do not handle the estate of a deceased individual according to the will or a court, a claim can be filed on your bond which you’re responsible to pay. A bond can be required even if the will states that no bond is needed, as it is ultimately left to the judge's discretion. This bond type is referred to by other names such as probate bonds, estate bonds and executor bonds.
Yes. Collateral is not required for most probate bonds. They are usually approved with just your indemnification and premium.
It is possible. However, it depends on the extent of your credit issues. You may be able to get approved if you only have moderate credit problems. Serious credit issues will make you ineligible for bonding. Securing the help of legal counsel will help guide you through the process and increase your chances of getting approved. Fill out our application online to see if you qualify.
Execute the estate in accordance with the will. If there is no will, you must cooperate with the probate law. Watch our video to get a better understanding of claims.
You must contact the claims department of the surety company who wrote your bond and provide proof that the claim is false.
They are required by a court, and the court will vary by the county, township or city where the estate is located, as probate laws vary by jurisdiction. A bond can be required even if the will states that no bond is needed, as it is ultimately left to the judge's discretion. If a fiduciary or executor does not handle the estate according to the will or court orders, a claim can be filed on the bond to ensure the heirs receive the items outlined in the will.
Claims on Probate Bonds Can Put You At Risk
You're responsible to pay bond claims in full which can be as large as the full bond amount (including legal costs). The indemnity agreement you must sign to get your probate surety bond is a legal contract that pledges your corporate and personal assets if you cause bond claims. Read our guide to learn more about how bond claims work. Unfortunately, many bond providers don’t take the time to explain how claims can put you at risk and how to avoid them; if your agent doesn’t take the time to do this, we strongly suggest that you reconsider working with them. Find out what makes our company different from other bond providers.
How Much Does a Probate Bond Cost?
Pricing is a percentage of the executor bond amount, which is determined using your business financial strength (collateral is not required). You can use our free bond premium calculator tool to get a ballpark price estimate, or you can apply online to get a firm quote.