Reasons

Local, county or state courts commonly require probate bonds when the court must appoint a person to handle the probate process for a deceased person. This may occur if the person died without a will or if the person named in the will to handle the process of distributing assets is dead or otherwise unable to fulfill probate duties.

Function

A probate bond is a type of credit the appointed individual borrows. The bond serves as a guarantee that the person will handle the estate appropriately.

Process

The appointed individual pays to a surety company a fee or a percentage of the bond amount required by the court. The surety company then pays the full amount of the bond to the court on behalf of the appointed individual.

Effects

If the appointed person does not properly perform his duties, the court will seize the money fronted by the surety company, and the person becomes obligated to repay the full amount to the surety company. If the estate is settled appropriately, the court returns the money to the surety company, which keeps the original fee the appointed individual paid in return for providing the bond money.

Considerations

To obtain a probate bond, it is typically necessary to have a good credit history and credit score, according to JW Surety Bond Consultants. If the person who requires the bond does not meet the surety company's criteria, additional fees may be necessary to obtain the bond.

Source:

BFBond: Probate Bonds

JW Surety Bonds: Probate Bonds

JW Surety Bonds: Frequently Asked Questions