Understanding probate bonds can be challenging—especially if you’re stepping into the role of Executor, Administrator, or Trustee for the first time. Below, we answer some of the most common questions to help you feel more confident and informed during the process.
How Much Does a Probate Bond Cost?
The cost (or “premium”) of a fiduciary bond is typically a small percentage of the bond amount, which is based on the size of the estate.
For example, if the estate is valued at $300,000 and the court sets the bond accordingly, the annual premium might range from $300 to $1,000. The exact amount depends on the bonding company and the applicant’s credit history.
What Happens If a Fiduciary Fails Their Duties?
If a fiduciary mismanages estate assets or violates their legal obligations, a claim can be made against the bond.
If the claim is found to be valid, the surety company will pay damages up to the bond amount—but the fiduciary will then be responsible for reimbursing the surety.
This structure ensures that the estate and its beneficiaries are protected, while also holding the fiduciary personally accountable.
Understanding Probate Assets
While we’re on the topic of probate, it’s helpful to understand what assets actually go through probate—and which ones don’t. This distinction affects the overall estate value and the fiduciary’s responsibilities.
Assets That Go Through Probate:
- Real estate titled solely in the decedent’s name
- Bank accounts without a named beneficiary
- Personal property (furniture, jewelry, vehicles)
- Investments not held in a trust or joint account
- Business interests owned individual
Non-Probate Assets (Exempt from Probate):
- Assets held in a revocable or irrevocable trust
- Life insurance policies with a named beneficiary
- Retirement accounts (IRAs, 401(k)s) with named beneficiaries
- Jointly held property with rights of survivorship
- Payable-on-death (POD) or transfer-on-death (TOD) accounts
Knowing which assets require probate can help fiduciaries accurately assess their responsibilities and comply with legal duties more effectively.
Final Thoughts
If you’re considering acting as a fiduciary—or have already been named one—it’s essential to understand the scope of your responsibilities.
Obtaining a fiduciary’s bond is more than a legal formality; it’s a promise to act with integrity, follow the law, and protect the estate and its beneficiaries.
Feeling overwhelmed by the probate process? Our team is here to guide you through each step—including obtaining a fiduciary bond. Contact us today for trusted help.
