Category Archives: Probate Bonds

Why would an administration bond have a fixed amount?

One reason, an adminsistrator Bond  is required, is the estate might appreciate in value, additional assets may be discovered but not reported to the court. This is not at all uncommon, it may be inconvenient to report. The fiduciary may deliberately fail to report in order to avoid having the bond increased and to avoid additional premium and cost. Whether the additional bond is furnished or not, the surety is liable up to the amount of the loss, but not in excess of its bond penalty. Therefore, the proper basis of premium computation is the amount of the bonds, not the amount of the personal property.

How does one become a bonded administrator?

The administrator is generally the choice of the family of the deceased, and is chosen because they believe he or she is the most able among them. Since they know him or her better than anyone else, it usually works out that a person appointed to handle an estate is a good sort of risk.

Before he commences his task of collecting all of the moneys due the estate, he must furnish a bond, which guarantees that he will faithfully perform his duties as administrator, that he will file inventory within a short period, pay claims, distribute the residue in accordence with the law and last but not least make proper return to the court by a final accounting, covering everything that has been done. When the court has approved what has been done, then his bond to the surety can be released.