When an individual dies without an estate plan, the local probate court appoints someone, usually a relative, to settle the deceased’s affairs. This person is referred to as an administrator. Since the duties of the administrator entail resolving the debts of the deceased, and then distributing remaining assets in accordance with the state laws of intestacy, courts typically require administrators to post a bond, referred to as an estate or administrator bond. An administrator bond protects the interests of heirs and creditors by serving as a guarantee that the administrator will carry out their duties in accordance with the law.
Guaranteeing The Proper Administration of The Estate
A court appointed administrator is a fiduciary, legally obligated to handle the assets of the deceased in accordance with the law, while putting the financial interests of creditors and heirs above self-interest. At the core, an administrator bond is a specific type of surety bond. Essentially, an administrator bond is a legally binding agreement involving three distinct parties:
- The Principal is the court designated administrator who is required to obtain the bond, and whose actions are being guaranteed by the bond.
- The Obligee is the Probate Court or Surrogate’s Court that requires the administrator to obtain the bond for the protection of the estate’s creditors and beneficiaries. Typically, the court sets the amount for the bond, based on the circumstances of the estate and assets involved.
- The Surety is the bonding company that issues the administrator bond, guaranteeing to the court that if the administrator (aka Principal) fails to perform their fiduciary duties, the Surety will compensate the estate for the financial loss, up to the bond’s limit. The Surety can then seek payment from the Principal for the amount paid against the claim, up to the value of the bond.
Whenever and wherever the court requires an administrator bond, Colonial Surety Company makes it easy and speedy to obtain, via our direct, online service. Just enter the brief information, receive your instant quote, enter payment and then download or print your administrator bond. That’s it. As national and direct bond writers, Colonial Surety Company ensures that administrator bonds meet the specific requirements of courts in every state. We make it so easy and speedy to obtain the bond that administrators can e-file the bonds before even leaving the courtroom.
Estate Bonds, AKA Administrator Bonds, Here
Good To Know: Serving As An Administrator
Attorneys at Loire Krajniak Law explain that being appointed as an administrator is a big responsibility and share this basic overview of the role:
When someone dies without a valid will, the courts will appoint an administrator of the estate to divide up the decedent’s assets. If you are appointed the administrator, you will have to start by getting a complete estimate of the value of the estate. Assets in the estate may include bank accounts, real estate, investments, and more. You must also account for any unpaid debts the decedent may have had. Additionally, you will be responsible for filing tax returns for both the deceased person and his or her estate. Finally, the decedent’s assets will be divided in intestate succession, which automatically portions out the estate to surviving family members … .When you are entrusted with a deceased person’s assets, you have a fiduciary duty to manage them. This means that you must allocate and spend those assets in the best interests of the beneficiaries.
Once appointed, an administrator can anticipate that it will take at least six months to complete their duties, because, as attorneys explain: “Only after the time to file claims has expired and claims have been reviewed,” can the administrator begin the distribution of assets, following intestate succession laws. Before the court officially closes the estate, an administrator must: “Prepare a final accounting of the estate’s financial transactions for approval by the court and distribution to heirs.”
Probate Attorney?
All types of court and fiduciary bonds are just a few clicks away with The Partnership Account® for Attorneys from Colonial Surety Company. Once you’ve signed up for this free business service, just:
- Log into your private dashboard
- Choose from our complete portfolio of fiduciary and court bonds
- Get a quote and send it to your client for completion, or go ahead and complete it on their behalf—the choice is yours.
- Download, print or e-file the bond, and move on to your next case. That’s how easy we make bonding for attorneys.
Available fiduciary bonds include: administrator, estate, probate, personal representative, trustee, conservator, guardian and more.
Court bonds include: appeal, supersedeas, TRO, replevin and many more.
We’re direct, writers, and our experienced team is here to help ensure you meet even the most persnickety of bonding requirements.
The Partnership Account® for Attorneys
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