Why is a bond required in some cases when you are administrator or executor of an estate?
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Why is a bond required in some cases when you are administrator or executor of an estate?
Asked on August 8, 2013 under Estate Planning, New Hampshire
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
The bond that you are referring to is known as a "probate bond". It is issued on the performance of an administrator/executor; its purpose is to protect beneficiaries/heirs and creditors from being harmed by either the negligence or "malfeasance" (i.e. misconduct) of an administrator/executor. So for example of an administrator absounds with estate assets instead of paying creditors of the estate, the heirs can recover any amounts that they would have been entitled to from the bonding company. However, obtaining the bond can be costly and prohibitive.
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