Tag Archives: Administrator Bonds

What is the difference between the Administrator of an Estate and an Executor of an Estate?

(And why they both should be bonded)

admin-executor

A short answer is that an Executor (Executrix if a female) is the person whom is named in the Will to take charge of the estate.  The Executor is responsible for wrapping up the dead person’s affairs and distributing the assets to, or for the benefit of, the person’s named in the Will (beneficiaries).

An Administrator is the person in charge of the estate when someone dies without a Last Will and Testament.

Both the Administrator and Executor are subject to the jurisdiction of the Probate Court. Both have similar duties. Selling properties, paying taxes, gathering and dispersing assets.

Administrators and Executors are fiduciaries. A fiduciary is a person who has been given the highest degree of trust and responsibility that can be imposed by law.   Both must answer to and be accountable to the probate court. They must act in a fiduciary capacity with the settlement of the estate in the best interest of the estate. Their role as liquidators should have the best interest of the estate in mind when dealing with any person, property, interest, trust, or savings.

The most significant difference between an Executor and an Administrator is that an Administrator’s authority is limited to what the law provides in the statutes. The Executor has all the same legal authority PLUS additional powers that may be granted in the Last Will and Testament.

The Last Will and Testament can give the Executor the power to sell real estate at private or public sales without having to go through the courts, this saves time and money.

In the end, trust is key. Money and power without checks and balances can influence a person’s judgments.  This is why a BOND is so important.  A bond holds accountable the person and gives the heirs confidence this Executor or Administrator will be honest and proper when dealing with the estates money and business.

To learn more visit us at www.bfbond.com, call us at 800.921.1008 or download an application here

 

Court and Fiduciary Bonds

In today ‘s complex society, more and more people are engaging in litigation, which creates an increased need for the various bonds required in many cases.
BFBOND.com assures prompt service, not only in providing these judicial bonds locally, but also for those which a lawyer or one of his clients may be re­quired to file in some other part of the country. We make our bonds and ser­vices available in all parts of the nation either directly working with the clients or through thousands of independent in­surance agents and brokers. And, to assure these representatives and their clients effective action when coverages are needed or losses sustained, Bernard Fleischer & Sons, Inc  maintains  an expertly-staffed sales, underwriting and claim office.
Since 1949, Bernard Fleischer & Sons, BFBOND.com  has been one of America’s pioneer bonding companies. We work with company ‘s ap­proved as surety on bonds required by the Federal government. Bernard Fleischer & Sons, BFBOND.com  consistently occupies a front-rank position in the surety field.
Our commitment to sound under­ writing principles enables us to pro­vide a stable source of expert bonding service. At Bernard Fleischer & Sons, Inc, we believe that the proper handling of many forms of surety bonds requires technical knowledge that can be acquired only by a concentrated study of the subject combined with years of practical experience in the application of such knowledge.
Attorneys have come to depend on Bernard Fleischer & Sons, Inc experience and unparalleled service in meeting the special bonding requirements of the legal profession, such as:
• Administrator’s/Executor’ sf Personal Representative’s Bonds
• Guardian/ Conservators/ Committee Bonds
• Testamentary Trustees Bonds
• Receivers Bonds
• Trustee in Liquidation Bonds
• Trustee in Reorganization Bonds
• Attachment/Garnishment Bonds
• Replevin Bonds
• Injunction Bonds
• Indemnity to Sheriff
• Counter-Replevin Bonds
• Appeal, Supersedeas, Stay of Execu­tion Bonds
• Release Attachment/Discharge Garnishment Bonds
• Dissolve Injunction Bonds
Contact us:

Visit: www.bfbond.com

William Fleischer, CIC

Jose Ward 800-921-1008 JW@bfbopnd.com

 

Probate & Fiduciary Bonds quick definitions

Gavel Image

All Probate Bonds are underwritten with credit scores in mind.  We have companies who will consider scores lower than 650, they are a tad more expensive, but they get the job done. Most of the time an attorney would be required to maintain involvement until the matter is completed.

 

Guardianship Bond

This surety bond protects a person deemed incapacitated by the court to ensure the guardian does not abuse or neglect the ward financially or physically.

Curator Bond

A type of surety bond required by the court to guarantee the estate’s assets will not be misused, stolen or wasted. The amount varies from county to county depending on the value of the estate.

Personal Representative/ Administrator/ Executor Bond

Personal Representative Bonds (also called Administrator or Executor bonds) are a type of surety bond required after an individual’s death to administer final expenses and distribute assets.

Receiver/ Assignee Bond

The court requires this surety bond for corporations that declared bankruptcy to avoid any mishandling of any rents or payments made to the defunct company. The surety bond costs vary by jurisdiction and dependant on the value of the company’s receivables.

Trustee Bond

This surety bond is required either by the trust document itself or the court whose jurisdiction the trust is under. Surety bonds protect the trust from any losses sustained should the trustee not depose their duties as required.

Custodian of Veteran Bond

Similar to guardianship bonds, this surety bond is filed with the Department of Veterans Affairs after a veteran of a branch of the military, who has invested money with the VA, is deemed incapacitated. Surety bonds protect the veteran’s assets from being misused.

Probate/Fiduciary Bonds

Surety bonds are a protective measure in guardianship, administrator, trustee and curator actions. These fiduciary bonds vary by jurisdiction in cost and requirements.

Executor’s Bond Law & Legal Definition by uslegal

Executor’s Bond Law & Legal

Definition. 

Executors and Administrators require a bond, because they representatives of decedents’ estates and have the responsibility of administering and settling those estates. An executor is nominated by the testator for the purpose of executing the will. Responsibilities include gathering up and protecting the assets of the estate, obtaining information in regard to all beneficiaries named in the will and any other potential heirs, collecting and arranging for payment of debts of the estate, approving or disapproving creditor’s claims, making sure estate taxes are calculated, forms filed and tax payments made, and in all ways assisting the attorney for the estate.

State laws, which vary by state, may require an executor to post a bond in a certain amount to ensure that they carry out all the duties required of them in good faith. A bond may be an insurance policy required by a court for the benefit of a trust or an estate. The bond provides protection against the possibility of fraud or embezzlement by an executor. The will maker may request in the will that no bond be required.

The following is an example of a state statute dealing with executors’ bonds:

” Section 1. An executor, temporary executor or temporary administrator with the will annexed, administrator, administrator with the will annexed, special administrator, receiver of an absentee, conservator, temporary guardian and, unless otherwise expressly provided, a guardian or trustee under a will or appointed by the probate court, including a trustee under a will holding property for public charitable purposes, before entering upon the duties of his trust, shall give bond with sufficient sureties, in such sum as the probate court may order, payable to the judge of said court and his successors, and with condition substantially as follows:

    1. In the case of an executor or administrator with the will annexed:

First, To make and return to the probate court within three months a true inventory of all the testator’s real and personal property which at the time of making such inventory shall have come to his possession or knowledge;

Second, To administer according to law and to the will of the testator all personal property of the testator which may come into his possession or into the possession of any person for him, and also the proceeds of any of the real estate of the testator which may be sold or mortgaged by him;

Third, To render upon oath a true account of his administration at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, and also to render such account at such other times as the court may order.

    1. In the case of an administrator:

First, To make and return to the probate court within three months a true inventory of all the intestate’s real and personal property which at the time of making such inventory shall have come to his possession or knowledge;

Second, To administer according to law all the personal property of the deceased which may come into his possession or into the possession of any person for him, and also the proceeds of any of the real property of the deceased which may be sold or mortgaged by him;

Third, To render upon oath a true account of his administration at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, and also to render such account at such other times as the court orders;

Fourth, To pay to such persons as the court orders any balance remaining in his hands upon the settlement of his accounts;

Fifth, To deliver his letters of administration into the court if a will of the deceased is thereafter duly proved and allowed.

    1. In the case of a special administrator:

That he will make and return to the probate court within such time as it orders a true inventory of all the personal property of the deceased which at the time of making such inventory shall have come to his possession or knowledge, and that he will, whenever required by the probate court, truly account on oath for all the property of the deceased which may be received by him as such special administrator, and will deliver the same to any person who may be appointed executor or administrator of the deceased, or may be otherwise lawfully authorized to receive the same.

    1. In the case of a receiver of an absentee under chapter two hundred:

With condition substantially as provided for the bond of an executor or administrator, and with the further condition to obey all orders and decrees made by the probate court.

    1. In the case of a temporary guardian or conservator appointed under section fourteen or twenty-one of chapter two hundred and one:

That he will make and return to the probate court within such time as it shall order a true inventory of all the personal property of the ward which at the time of making such inventory shall have come to his possession or knowledge, and that he will, whenever required by the probate court, truly account on oath for all the property of the ward which may be received by him as such temporary guardian or conservator, and will deliver it to any person who may be appointed guardian or conservator or may be otherwise lawfully authorized to receive it.

    1. In the case of a guardian or conservator:

First, To make and return to the probate court at such time as it orders a true inventory of all the real and personal property of the ward which at the time of making such inventory shall have come to his possession or knowledge;

Second, To manage and dispose of all such property according to law and for the best interests of the ward, and faithfully to perform his trust in relation to such property and to the custody, education and maintenance of the ward;

Third, To render upon oath at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, a true account of the property in his hands, including the proceeds of all real property sold or mortgaged by him and of the management and disposition thereof, and also to render such account at such other times as said court may order;

Fourth, At the expiration of his trust to settle his account in the probate court or with the ward or his legal representatives, and to pay over and deliver all the property remaining in his hands, or due from him on such settlement, to the person or persons lawfully entitled thereto.

    1. In the case of a trustee under a will or appointed by the probate court:

First, To make and return to the probate court at such time as it orders a true inventory of all the real and personal property belonging to him as trustee which at the time of the making of such inventory shall have come to his possession or knowledge;

Second, To manage and dispose of all such property, and faithfully to perform his trust relative thereto according to law and to the will of the testator or the terms of the trust as the case may be;

Third, To render upon oath at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, a true account of the property in his hands and of the management and disposition thereof, and also to render such account at such other times as said court orders;

Fourth, At the expiration of his trust to settle his account in the probate court, and to pay over and deliver all the property remaining in his hands, or due from him on such settlement, to the person or persons entitled thereto.

    1. In the case of a temporary executor appointed under section thirteen of chapter one hundred and ninety-two or a temporary administrator with the will annexed appointed under section seven A of chapter one hundred and ninety-three:

First, when required by the provisions of chapter one hundred and ninety-two and whenever required by the probate court, to make and return to the probate court a true inventory of all the deceased’s real and personal property which at the time of making such inventory shall have come to his possession or knowledge, and to render upon oath a true account of his administration;

Second, to deliver all the property of the deceased which may be received by him as such temporary executor or temporary administrator with the will annexed to any person who may be appointed executor, administrator or administrator with the will annexed of the deceased, or may be otherwise lawfully authorized to receive the same.”

Executor Bond, Conservator Bond, Probate Bond, Administrator Bonds, Trustee Bond

 

Administrator bond amount

The reason the bond amount is based on the size of the personal property is that in most states, administrators have nothing to do with the handling of real estate, unless there are not enough funds or personal property to pay claims. Real estate cannot be conveyed without authorization to post additional bond by the court, based on the expected proceeds from the sale of real estate.  Then the courts will establish the amount of the Administrator Bond.

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.

What is an administration bond amount?

This is the amount of the administration bond fixed by statute, and is to be at least equal to the value of the personal property that comes into his hands. The law of many states require the administration bond to be twice the amount of the personal property. The reason for this seems to be that when individual surety is furnished, experience has shown that the suretyship often shrinks considerably in the event of a claim. Hence the lawmakers adopt what the engineers call a factor of safety, where corporate surety in amounts equal to double the value of the personal estate is furnished, a discount is allowed in the premium. Since the surety cannot lose more than the amount of the personal etate, the question is sometimes asked, “why not base the premium on the amount of the personalty?”

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 to 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.

Who most often becomes the administrator?

While the statutes of some states prohibit the appointment as an Administrator of anyone who has been convicted of a felony or is an habitual drunkard, the court is usually even more circumspect. Often the eldest child, the closest relation, or the principal creditor is named to administer the estate. No one is appointed, however, until the heirs and other parties at interest have given consent, or have been given a chance to protest. Retrieve the online Adminstrator Bond Here.

www.bfbond.com