Surety bonds come in many different forms and helps people in various ways possible. One example would involve surety bonds, protecting a deceased person’s property or assets, and or an incapacitated person’s assets, by guaranteeing that the court appointed executor or fiduciary would do their job in the correct manner. The one assigned by the courts to allocate the said property to the beneficiaries of the deceased or incapacitated person, should be responsible enough not to mismanage the properties and assets assigned to him or her. This is why the courts would require him or her – the assigned fiduciary – to apply and have estate surety bonds on hand.
There are many cases that estate surety bonds are needed to be filed by the fiduciary, who acts as the principal in this transaction. The surety bond company would assure the beneficiary and the court that the assigned work of this fiduciary will be completed. Now, to go over the procedure of having this estate surety bonds, you need to file this under a probate or claims court. This is done so the courts will be able to rule legally upon the claims filed against the said property or asset owned by the person deceased or incapacitated. In the case of the beneficiaries, they are the obligee in this transaction since they are the one being assured that they will get their claims legally through the courts assistance.
In some cases, a minor might own a property or asset and in turn, the court may assign a fiduciary or executor and require this executor to get an estate bond as well. In this process, since the one owning the property is a minor, then the filing of the claims would also be left on the hands of the executor or principal in this transaction.
Another case involves the will of the one owning the property, whenever he or she has mentioned about not requiring estate surety bonds, then this could be waived off. However, what if the owner of the property did not mention anything on his or her will, or what if there’s no will after all? How do we go about the process for this? Since this is the case, then we go about filing for the estate surety bonds needed in order to proceed and protect the clients’ interest.
We also don’t require the corporations or businesses that act as the executors or fiduciaries to have an estate bond, this in accordance to the Probate Act. As for the cost of this estate bond, the normal market rate applies accordingly. We follow this rule that for every $1,000 the rate of the bond amount will be $10. Premium rates are, $50 for every $5,000 – $200,000, including $6 for every $1,000 bonded for the transaction; $1,220 for every $200,000 – $500,000, including $4 for every $1,000 bonded and $2,420, including $2 for every $1,000 bonded for the transaction of $500,000 or higher. They also need to meet the requirements of having 650 or higher credit rating or score, have a quality net worth in their finances and no other prior claims before. The estate surety bonds would be issued to them or quoted on the same day and once approved then, an email or fax copy will be provided.
Get to know more details of the estate surety bonds and how it works, visit American Surety Bonds.
