What You Need to Know About Getting a Probate Bond

If you have been appointed to manage an estate, a court may want you to obtain a probate bond. A probate bond guarantees that the bond -Principal or personal representative of the estate will fulfill their duties as an administrator, trustee, or executor. If the Principal acts unethically or irresponsibly and a Surcharge is ordered by the court, the Surety must compensate the Obligees; – in this case, the estate / trust heirs or beneficiaries if the principal does not do so personally.

Consider applying for a probate bond through an agency offering a wide variety of California probate bond services. Reputable agencies provide their clients with guidance every step of the way, helping them navigate the process of obtaining a probate bond.

When is a Probate Bond not Required?

Not all administrators, executors and trustees are required to obtain a probate bond. Whether you need to secure a probate bond or not will depend on the jurisdiction, the specifics of the will / trust, and the court’s discretion.

Below are scenarios where a probate bond may not be necessary.

➢ If the testator’s Will explicitly states that no bond is required for the named personal representative, the court may waive the requirement
➢ If all estate heirs / beneficiaries are adults and sign an agreement to waive the requirement for a bond. Heirs / Beneficiaries of an estate usually sign such an agreement if the estate administrator is a trustworthy person and there is no reason to believe that they’d act dishonestly. A court can override this waiver and require the executor to get a probate bond
➢ A judge may decide that a bond is not necessary based on the circumstances of the case. A court may also waive the requirement if the administrator is a trustworthy person, or they manage a small estate and estate assets are considered low-risk
➢ If the assets were held in a trust, rather than the deceased’s personal name, probate, and by extension, a probate bond, might not be required at all
➢ Assets owned jointly typically transfer directly to the surviving co-owners and bypass the probate process, thus eliminating the need for a probate bond

How to get a Probate Bond?

To obtain a probate bond, fill out a surety bond application form and submit it to the surety company of your choice. Provide accurate and up-to-date information related to the estate, the executor, and estate assets. You may also need to provide a copy of the will and letter of administration or similar documents.

After the surety company receives your application, they conduct a credit check. Your creditworthiness can affect the premium amount. Once the surety approves your application, you’ll be required to pay the premium. Bond premiums can vary based on the bond amount and the applicant’s creditworthiness.

After receiving the bond, it needs to be signed and then filed with the probate court. Once the court approves and accepts the bond, you can assume your duty as an executor.

Discover the trusted expertise of H.M. Vreeland, your go-to surety agency in San Francisco Bay Area, dedicated to addressing your diverse bonding requirements with precision. No matter how complex your needs, we can help you find and obtain the right type of surety bond. To learn more, call 415-566-3401.