For most people the first time they’ll hear about an executor bond is when a friend or loved one who has named them as an executor to their will passes away. An executor bond can be required by the will documentation or by state regulations, if this is the case the executor will be required to get a surety bond in order to carry out their role as the will executor.
What is an executor bond and why are they used?
As the executor to a will you will often have access to valuable items and cash sums. Executor bonds are used to protect the beneficiaries of the will by ensuring that a will executor faithfully carries out their role. Executor duties commonly include the following:
- Contacting beneficiaries of the estate
- Having the estate valued
- Paying off all debts owed by the estate
- Creating an inventory of the estate
- Paying estate taxes
- Carrying out all duties in a law-abiding manner
Although technically not an insurance product executor bonds provide a form of financial insurance to the heirs of an estate by giving them a method to claim financial compensation if the executor of a will fails to complete their duties. An executor bond is actually more like a form of credit as the surety agrees to pay claims made against the bond up to the bonded amount, however, all claims paid by the surety must be repaid by the executor of the will. This financial responsibility is used as a deterrent to stop executors acting in an improper capacity.
Not all will executors need an executor bond
Many will executors won’t be required to have an executor bond, however, as we mentioned above there are a number of factors that determine whether you’ll need to take out a surety bond to act as an executor to a will. There are three main reasons that you could be required to obtain a surety bond: the will states that you must have one, state law requires that you have one, or probate court deems it necessary. If you fall into one of these categories you’ll need to apply for an estate bond of the required amount through a bond service.
Finding the bond you need
Viking Bond Service has been helping will executors find the right bond for many years. Our experienced team can help you apply for and secure an affordable executor bond in all 50 states. Use our online quote form or call today to get started!