Unfortunately, it sometimes happens. Executor bonds are an important way to protect the beneficiaries named in the will.
Ordinarily, as a will is prepared, an executor is named to administer it when the time comes. The executor has fiduciary responsibilities and must distribute assets to the beneficiaries as specified in the will. Most commonly, the executor is a family member or close friend of the deceased and trust is implicit in the arrangement. Sadly, sometimes temptation, life circumstances, conflicts or other problems contribute to executors going astray.
It’s important to keep in mind that executors are entitled to reimbursement for expenses they may incur in the course of their duties. Sometimes, compensation is also appropriate, even though it is often waived. Then too, the settling of debts of the deceased may impact assets. When there are suspicions about an executor’s management of money, it’s always best to start by asking for an accounting. LegalZoom offers this guidance:
A beneficiary has several ways to take action….You can ask for an accounting to track where the money is going, you can bring legal action against him to recover stolen assets….Whatever you do, you should act quickly. Even though you have a right to recover from the executor, if the money is spent, he may not have the resources to repay you.
The Role of Executor Bonds
Though they are often waived when a will is created, executor bonds can provide protection for beneficiaries. Legal Beagle explains: Some wills require the executor to get a bond from an insurer, referred to as a probate or executor bond, to insure against loss to the estate because of the executor’s actions.
Sometimes, probate courts require bonds. Even when they don’t, having an executor post a bond can be a good way to increase the confidence of all the beneficiaries involved. Executor bonds are a type of fiduciary bond—they guarantee the faithful performance of the executor in accordance with applicable state laws.
It is easy to obtain an executor bond from leading, national provider, Colonial Surety Company. Uniquely, Colonial offers direct, digital, executor bonds. Sometimes these bonds are referred to as administrator, estate, fiduciary, personal representative or probate bonds. Colonial provides all of these fiduciary bonds. Just get a quote online, fill out your information, and enter your payment method. Print or e-file the bond right from your home or office—even while at court. It’s that simple.
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Across the country, lawyers find it helpful to partner with Colonial Surety Company to save time whenever court or fiduciary bonds are required. Colonial’s Partnership Account is a free, fully digital, business service that provides attorneys with a user-friendly client management system and dashboards. Coordinate, view, complete and e-file the court and fiduciary bonds clients need—all from Colonial’s innovative online platform.
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Founded in 1930, Colonial Surety Company is a direct seller and writer of surety bonds and insurance products. Colonial is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed, and licensed for business everywhere in the USA.