Probate Bond is also known as the estate, executor, and fiduciary bonds. These bonds are required to be purchased by a person responsible for distributing a person’s estate after he or she passes away. The probate bond protects the deceased’s assets.
Trustees have certain duties (some of which are fiduciary). These include the duty to:
Carry out the expressed terms of the trust instrument
Defend the trust
Prudently invest trust assets
Be impartial among beneficiaries
Accountable for actions and keep beneficiaries informed
Not be in a conflict of interest position
Administer in the best interest of the beneficiaries
A trustee carries the fiduciary responsibility and liability to use the trust assets according to the provisions of the trust instrument (and often regardless of their own or the beneficiaries’ wishes). The trustee may find himself liable to claimants, prospective beneficiaries, or third parties. In the event that a trustee incurs a liability (for example, in litigation, or for taxes, or under the terms of a lease) in excess of the trust property they hold, they may find themselves personally liable for the excess.
A person appointed as an administrator, personal representative, or executor. An Executor who is named by the Decedent in his or her Will to serve independently of Court scrutiny will usually not have to post a bond. However, if the individual is appointed by the Court as a Dependent Administrator, a bond is required
How Much does a Probate Bond Cost
Probate bond costs vary depending on the amount of coverage needed. The amount is typically based on the total estate value the fiduciary will be responsible for. Probate bond premiums are typically calculated at just .5%, or $5/thousand for the first $250,000 of coverage. This means $100,000 of coverage would cost start from $500 based on applicant credit history and some other factors.