What Is a Probate Bond?
Probates have to do with legal processes that are carried out to manage a person’s assets and property upon their death. This includes assembling the deceased properties, paying off any debts owed and executing a will if any was drawn up.
A probate bond is a legally binding contract taken out by the executor of a will or a caretaker or personal asset manager that guarantees that the will executor or asset manager will carry out the will of the deceased ethically and honestly. The bond guarantees reimbursement if the official defaults.
Probate bonds are used in cases where the owner of the property or assets in question is deceased, disabled or unable to care for themselves.
How Does a Probate Bond Work?
A probate bond is a court bond that guarantees an appointed executor will comply with the terms of the will. If the individual does not comply and defaults, a claim can be filed against his bond. When that happens, the Surety carries out an investigation to determine the validity of the claim. If the claim is true and the executor cannot pay the bond amount, the Surety steps in the pay. The executor is then legally bound to reimburse the Surety.