What is a probate bond?

A probate bond, also known as an executor bond or fiduciary bond, is a type of insurance bond required by a court when someone is appointed as the executor of an estate. The purpose of a probate bond is to protect the assets of the estate and ensure that the executor carries out their duties in accordance with the law.

The amount of a probate bond is usually set by the court and is based on the value of the estate. The executor is responsible for paying the premiums for the bond, which are typically a small percentage of the total bond amount.

If the executor fails to properly handle the estate or misuses the assets, the probate bond provides financial protection for the beneficiaries of the estate. In the event of a claim, the surety company that issued the bond will compensate the beneficiaries for any losses incurred due to the executor's misconduct.

It is important for executors to understand the requirements and responsibilities associated with a probate bond before accepting the role of executor. Failure to comply with the terms of the bond can result in legal consequences and financial liability for the executor.