- July 20, 2022
- Posted By:hmvreeland
- Category:Probate Bond
A probate bond is a type of bond typically assigned by a California court. It guarantees that the Executorpersonal representative of an estate will manage it according to state laws and the terms of the trust or in accordance with the wishes expressed by the testator in their Will. A testator may waive bonding requirements in their Will.
Here are some common types of probate bonds.
Guardianship Probate Bonds
If a person has minor children or physically or financially incapacitated dependents, they should name a Guardian for their kids in their will. In case a person with minor children dies intestate or if the will is invalid, the court appoints a Guardian. Guardians are required to post a Guardianship probate bond. A Guardian bond guarantees that the Guardian will discharge their duties and responsibilities.
If an individual creates a trust through a will, they must name a trustee to manage and administer it. A trustee acts as the custodian of the assets held in the trust and has a fiduciary responsibility to the trust beneficiaries and should act in their best interest. A trustee bond guarantees that the trustee will act in accordance with the trust agreement and make sure that the designated beneficiaries get the assets and money left for them by the Trustor.
Executor / Administrator Probate Bonds
A person must appoint an Executor to manage their estate upon their death. An Executor is also responsible for ensuring that the estate is disposed of in accordance with the decedent’s wishes or as ordered by the court. If someone does not designate an Executor, the court will appoint an Administrator They are responsible for paying off the individual’s debts and taxes before distributing the assets held in the estate among the designated beneficiaries / heirs.
An Executor / Administrator probate bond guarantees that the Executor personal representative will perform their duties according to law. Executors are usually not required to purchase an Executor probate bond if the requirement is waived in the Will. If not, an Executor probate bond is required.
When is a Probate Bond Required?
A probate bond is not required in every case. If the decedent waives off the requirement in their will, the Administrator and Executor do not need to purchase a probate bond. In case a person dies intestate without clearing their debts or the designated beneficiaries do not agree to waive the requirement for the Administrator and Executor to post a Surety bond, they will be required to purchase one.
How Does a Probate Bond Work?
If the designated beneficiaries feel that the Executor, Guardian, or Administrator failed to perform their duties and responsibilities, they can file a motion to surcharge. If the claim is found to be valid, the Surety pays the designated beneficiaries the claim amount and then recoups their expenses from the Principal.