Executor bonds, also known as estate bonds, offer a form of insurance for the beneficiaries of a deceased person's will or estate. The bond provides an additional incentive for the executor to manage the estate correctly, absent of illegal or fraudulent actions.
Executor bonds are provided only when deemed necessary by the probate court. When applying for the bond, one of the documents required is the court order establishing both the bond requirement as well as the amount of the bond.
Typically, an executor is defined in a deceased individual's will. However, if the deceased person did not name an executor, a probate court will appoint one. In this instance, the probate court may require an individual to file an estate administrator bond. By doing so, the probate court provides an additional incentive for the executor to manage the estate in a manner that adheres to the will and/or applicable regulations and laws.
An executor plays a key role in managing a deceased individual's finances, real estate and other assets. He or she may be responsible for a number of actions, including:
With an executor bond, family members, heirs and other stakeholders are protected in the event that an executor fails to act properly. An executor bond offers protection against fraud, embezzlement and other illegal acts that may be completed by an executor, making it an exceedingly valuable tool.
Contact a probate court to find out if an executor surety bond is needed. If one is required, a probate court will not name an executor until the bond is officially filed. Or, in some cases, a will may stipulate that a bond is not required.
To acquire an executor bond, an individual will need to submit an application. This individual will need to show that he/she can serve as a responsible and ethical executor. As such, the individual will need to provide details about his or her financial and personal history. Furthermore, an executor bond provider will require an individual to submit his or her credit history and other relevant information.
Many factors are considered when determining the cost of an executor bond. The cost is presented as a percentage of the bond amount. The proposed executor’s credit and financial strengths are heavily considered when determining cost. A surety may also require these bonds to be collateralized to help mitigate some of their risk. Usually, these bonds are quoted within 1% to 6% of the bond amount. However, the quotes can come in lower or higher than the range depending on the qualifications of the principal, the proposed executor seeking bonding.
Viking Bond Service agents have well over a decade of experience providing executor surety bonds for our clients. We let our clients know exactly what will be needed to obtain the bond and we seek to get the best rate and terms for the bond.
Viking can get you through the Freight Broker bonding process fast. From application to quote to bond in place, we keep it simple.
Getting a Surety Bond is not difficult. Viking can guide you from start to finish. Learn what is involved in the bonding process.
Viking can get you from bond application to bond in hand quick and easy. We work with both good and bad credit clients. Get started here.
A Performance Bond may be required to bid for, or accept a contracted job. Learn about Performance Bonds here.
Viking offers fast quotes and great rates for Auto Dealer Bonds nationwide.