What Are the Types of Probate Bonds?
Required by the probate courts, a probate bond is generally purchased by the executors, trustees, and administrators as a guarantee that they will perform their duties. These types of bonds are also known as fiduciary bonds, as the individuals holding the bonds have a fiduciary duty to be faithful and competent.
Some of the most common types of probate bonds that are often required before a court will permit individuals or companies to administrate an estate or trust include:
Guardianship probate bonds: A guardian needs to be appointed when the deceased leaves behind minor children with no surviving spouse. The deceased often names a guardian in a will. Guardians are required to post a guardianship bond to guarantee an honest accounting of property that the child inherits.
Executor probate bonds: Being accountable for managing the affairs of the estate, the executor must make sure that the property is distributed in accordance with the deceased person’s will, or as ordered by the court. The executor bond guarantees that the executor will faithfully comply with the orders given by the probate court in carrying out his duties.
Testamentary trustee bonds: There are some wills that come into effect when the trust creator dies. Appointed by the court, a trustee is in charge of managing the financial affairs of the trust for the benefit of the beneficiaries. A testamentary trustee bond guarantees that the trustee will maintain the trust agreement, safeguard the assets of the estate, and distribute assets as directed by the trust instrument.