When you are appointed as the administrator or executor of an estate, you take on a large responsibility. One of the things that you need to do is to show that you are reliable and capable of administering the estate on behalf of others.
You might be confused on if you need a Personal Representative Bond or a Probate Bond. What's the difference between them?
What is a Probate Bond?
Probate Bonds are also called fiduciary bonds. The purpose of a Probate Bond is to ensure that you follow through with distributing the estate of someone who has passed away.
There are a few different kinds of Probate Bonds:
A Personal Representative Bond is a Type of Probate Bond
One of the most common types of Probate Bonds is a Personal Representative Bond. When someone dies and names a representative of the estate in the will, this individual might need to secure a Personal Representative Bond.
If someone dies without leaving a will, the probate court most likely will require the personal representative to secure a bond.
A Personal Representative Bond guarantees that the representative will manage the estate's assets on behalf of its heirs. The bond also promises the personal representative will settle debts, cancel credit cards and accounts, notify Social Security and other government agencies, pay taxes, and pay funeral costs for the estate.
In short, the term "Personal Representative Bond" and "Probate Bond" essentially mean the same thing.
How Does a Personal Representative Bond Work?
If the personal representative is not fulfilling his/her duties, someone can make a claim on the bond. The surety company will investigate the claim. If it is determined to be valid, they will give the personal representative a chance to satisfy the claim.
If the personal representative does not satisfy the claim, the surety company will pay the claimant whatever he/she is due. Because of the nature of surety bonds, the surety company will turn to the personal representative for reimbursement.
The personal representative is responsible for paying back every single penny the surety company paid out.
Getting a Bond
No matter what kind of Probate Bond you require, you'll need to provide evidence that you can be a responsible, ethical, and accurate manager of the estate. Managing someone's estate requires attention to detail.
When you apply for a Probate Bond, the surety company will evaluate you on your personal credit history and your ability to fulfill the duties listed in the bond. You can learn more about what you will be evaluated on.
Surety Solutions offers free quotes on probate bonds from over 30 carriers so that you can find the best price for your bond. The best way to see what you'd pay for a Probate Bond is to get a free quote below: