Individuals chosen to be fiduciaries, administrators, and executors within the Empire State are typically required to post a surety bond. Surrogate’s courts require fiduciaries to obtain such a bond to safeguard the interests and affairs of the estate and its beneficiaries under New York law.
A surety bond is a written agreement between three major parties; the surety, obligee, and principal. The written agreement is a guarantee under which one party, the surety, obligates itself to a second party, or the obligee, to answer for the default of a third party or the principal. Court bonds, such as appeal bonds, may be required in court proceedings to enable a party to pursue a remedy in court. Fiduciary bonds guarantee the faithful performance of court-appointed fiduciaries such as executors, administrators, guardians, and trustees.
Per the Surrogate’s Court Procedure Act Section 710, though the bond requirement is waived when an individual dies with a prepared will naming the executor or the administrator, the court will typically ask the administrator to post a surety bond if the individual departs without a will in place. An estate bond is a form of insurance to safeguard the estate creditors and beneficiaries from losses due to mismanagement of the estate.
Understanding the risk associated by issuing a bond to a fiduciary, surety companies require that the fiduciary possess the necessary financial background. The amount of the bond ordered by the court depends on numerous factors, including the decedent’s estate and the value of the assets in question.
At Colonial Surety Company, we have many court and fiduciary bonds for you to choose from, including appeal and supersedeas bonds, conservator bonds, estate bonds, trustee bonds, guardianship bonds, referee bonds, receiver bonds, VA fiduciary bonds, replevin bonds, injunction bonds, and attachment bonds. These I-bonds® are direct and instant surety bonds, and are available for quote, purchase, print, and e-file at your convenience. We are proud to be a trusted insurance company recognized for our unmatched customer service. Click here to obtain your bond.