Law Offices of Craig Willford

Bonds on Fiduciary

Data as of August 23, 2011

The Court will many times require that the appointed (or supervised) fiduciary post a bond to assure the faithful and proper execution of their duties.

The Court has discretion in the matter of the setting of the bond, even to the extent of requiring bond when the Will specifically states that the bond is to be waived.

The Court also has discretion to waive the bond when it might have otherwise been required. The Court typically will not do this, however; in the few times that it will do so, it will require the unanimous written waivers from all the beneficiaries and a clear declaration that creditors will not be harmed (mostly because there aren't any).

Of course, the Court has discretion to set the amount of bond. It typically sets the amount of bond, unless waived, to the value of the estate that is not realty plus one year's income for Limited IAEA (and rare non-IAEA) estates and bonding the value of the realty too (less incumberances) if it is a Full IAEA appointment.

It is a good idea to find out before the Petition is filed whether or not the proposed fiduciary is bondable for the amount of bond that is anticipated to be ordered by the Court.

In order to do this, a bond application to a bonding company must be filled out, signed and submitted. The bonding company my office has been using for many years will do this service before the Petition is even drafted. The application makes detailed inquiry about the size and character of the estate and also about the financial condition of the proposed fiduciary. It asks for a credit card of the person who would be the fiduciary; do not be alarmed: it is merely a way for the bonding company to make sure they are checking the credit standing of the correct person (after all, two people can share the same name). They will not charge anything to the card.

If the proposed fiduciary is not bondable, better to know that up front than after spending a lot of time and effort and money (in filing fees and publication fees) only to find then that a bond can never issue in the amount required by the Court.

On the assumption that the bonding company approves the person for a bond amount anticipated to be issued by the Court, then the actual bond can be signed by the proposed fiduciary and delivered to the bonding company for their signature and filing with the Court when the time is right.

This page and all pages of the www.craigwillford.com web site is copyright by Craig Willford on various dates; this page in 2011.