Estate bonds, also known as probate bonds, executor bonds, personal representative bonds, fiduciary bonds, and administrator bonds, are a type of court bond required by courts to protect the interests of an estate and its beneficiaries in accordance with applicable state law. The bond requirements may vary from state to state depending on applicable state law.
Estate planning often requires the appointment of an executor in order to wind down a deceased’s affairs, managing property and assets of the estate until debts and taxes are paid. Only then are the property and assets of the estate disbursed. Estate or probate bonds guarantee the honest and faithful accounting of a fiduciary or executor on behalf of an estate and its beneficiaries. The bonds provide a protection against malfeasance of that executor or fiduciary by providing financial protection against a loss of property or assets due to unfaithful performance or dishonest accounting.
An estate or probate bond is not insurance, however. The bonded party would be responsible to the surety for payments it makes on your behalf due to your failure to fulfill your duties toward the estate. An Indemnity Agreement signed when purchasing the bond functions as your promise to repay the surety for the losses you cause the surety to pay on your behalf. Often an appointment as administrator or executor will not be finalized until the estate or probate surety bond is purchased.
Colonial offers the direct and digital way to obtain estate and probate bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!