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Executor Bonds (Administrator Bonds)

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 surety bond, one of the documents required is the court order establishing both the bond requirement as well as the amount of the bond.

How Is an Executor Determined?

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.

What Are an Executor's Responsibilities?

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:

• Creating an inventory of an estate's assets
• Reaching out to beneficiaries and potential heirs
• Getting an estate appraised
• Paying off an estate's debt
• Calculating and paying off taxes
• Distributing the estate's assets
• Protecting the estate's assets
• Ensuring the will is filed properly

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.

How Can You Obtain an Executor Bond?

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.

How Much Will It Cost to Obtain an Executor Bond?

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.

Executor Bond Quotes from Viking Bond Service

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.