What is a probate bond?
Probate bonds, which can also be referred to as fiduciary bonds are required by the court of individuals that are acting on behalf of others. For example, a fiduciary may be appointed by the court to manage someone’s finances, or to care for that individual if they are either too young (under the age of 18) or simply unable to care for themselves. Many of these types of bonds will be referred to as personal representative (executor), guardianship bonds, conservator bonds and administrator bonds.
Ultimately a probate bond is there to protect the incapacitated person, estate, and their beneficiaries. It protects against fraud, embezzlement and creates an avenue for recourse for those potentially damaged by the court appointed person.
Who needs a probate bond? How do I know if I need one?
It is up to the court regarding the bond requirement, many times that is determined based on the size of the estate and the value of assets. The court documents will state whether a bond is required and in what amount. The court determines the amount of the bond, not the surety company. If you have a probate attorney, and it is recommended that you do have one, they can also guide you in the process and can advise you if you need a probate bond and in what amount.
How much does a probate bond cost?
In general probate bonds are very inexpensive. For example, a $50,000-dollar bond could be $250.00 (or less) dollars and a $100,000-dollar bond could be $450.00 (or less) dollars, both billed annually. Discounts are also applied if you pay 3 years (or more) in advance.
How do you obtain a bond?
To obtain a bond it is important to receive guidance from a surety bond professional. Most insurance professional know what they are, but do not have the complete understanding of the requirement and or the best way to get the bond done for you in a seamless manor.
Typically for probate bonds valued under $250,000 you will only be required to complete an application (provided by your bond agent), and all relevant court documents. They are usually approved based on a simple credit check of the applicant.
Who is the applicant?
The applicant is the court appointed fiduciary, and the named principal on the bond.
Since 1981 CBI is the largest surety management firm in Arizona and has relationships with over 30 surety companies.
Call Chrystal Hedges at CBI today to discuss your probate bond needs.
480-527-1114 | www.cbialliance.com