Tag Archives: Probate Bond

Guardianship Bond, Probate/Fiduciary Bonds, Uncategorized

So, you want to be a guardian? Here’s what you need to know.

To watch your loved one lose the ability to take care of oneself is immensely painful.  In some cases, your loved one may need a guardian to manage his or her affairs.  This article will give you an understanding of the process of applying for guardianship under Article 81 of the Mental Hygiene Law.

            First, how do you end up in Article 81 proceedings?  In some cases, a facility such as a nursing home or hospital will file a petition in court asking for a guardian to be appointed.  This may arise where they need someone to file a Medicaid application so that medical bills can be paid, and the person who is being cared for does not have that ability due to mental or physical issues.  In some of the sadder cases, the facility may file for the appointment of a guardian because care staff believes that the patient or resident needs to be protected from relatives, spouses, etc. who are interfering with medical treatment and/or engaging in financial abuse.

            Additionally, people’s loved ones can file for guardianship.  Those loved ones can include: (1) anyone who has a right to the property of the person if the person passes away, (2) the executor of an estate where the person is or may be the beneficiary, (3) a trustee of a trust where the person controls the trust or is the trust’s beneficiary, (4) the person with whom the person lives, or (5) any other person concerned with the person’s welfare.  People’s spouses and adult children often apply for guardianship.  People may file because they want to make medical decisions on behalf of the relatives, to handle their assets, to protect their assets for purposes of estate planning, or to consent to settlement of a lawsuit on behalf of the loved one (e.g., worker’s compensation, medical malpractice).

            Unless someone else (like a nursing facility or hospital) has already asked the court to appoint a guardian, you will have to file an order to show cause and petition.  The person who you want to be guardian for is called the alleged incapacitated person (AIP). 

Your papers will have to detail which powers you are asking the court to grant you, the reasons why you believe that the person cannot handle his or her own affairs, why you believe that you should be appointed as guardian, and the assets that you will have to marshal (get control of).  One unpleasant aspect is that the papers will have to be given to the AIP.

            The court will appoint a court evaluator, and may also appoint an attorney to represent the AIP.  The court evaluator’s job will be to make recommendations to the judge and tell the judge which assets the AIP has.  The court evaluator will have a position about whether the AIP is incapacitated, or unable to manage his or her own personal needs and/or property.  If the court evaluator finds that the AIP is incapacitated, then the evaluator will also make recommendations about who should be appointed as guardian.  The court evaluator will speak to the AIP, to you, to the social worker if the AIP is in a facility and any other friends or relatives who have significant knowledge about the AIP.  Because the court evaluator will need to know about the AIP’s assets, it will be helpful for you to have copies of items like Social Security statements, pension statements, bank statements, mortgage statements, and brokerage account statements available for the court evaluator to inspect.   If there is significant debt, then you should also have copies of items like credit card statements available.

            Ultimately, there will be a hearing before the judge.  Before the hearing, the judge will likely speak with the attorneys and the court evaluator to determine whether it would be in the AIP’s best interests to attend the hearing at all and if it is, whether it would be more comfortable for the AIP to attend remotely.  You will testify about topics which include, but are not limited to, the history (when and how the AIP became incapacitated), why you are asking to be appointed as guardian, your relationship to the AIP, and the AIP’s financial condition.  The court evaluator will also testify about his or her investigation.  There may also be other witnesses, like a social worker from a care facility, and any other individuals, like other relatives, who want to make their voices heard.

            The judge may ask questions of you, like whether you understand that you will have to take a course, whether you have been convicted of a felony, and whether you understand that you have to submit annual accountings.  We will get to the first and third issues later.

            If the judge appoints you (or anyone) as guardian, then the judge will also appoint a court examiner. 

            You will have to take a course on guardianships, and you can get information about your options from the Guardianship Clerk in the courthouse.  If there are significant assets, the court will also order you to obtain a bond.  Once you have taken the course and obtained the bond, then you will obtain your commission, which will officially give you powers as a guardian.

            The court evaluator, and the attorney for the AIP, will be awarded fees, which will be paid from the AIP’s assets.  If the assets are insufficient to pay the fees, then the court will likely order the person who filed the petition (whether it be you or a facility) to pay anything that is left over.

Once you obtain your commission, the court examiner will give you a due date for your ninety-day report, which will require you to present proof that you completed the course, provide information about what you are doing as guardian, and also list the assets of the incapacitated person.

After a guardian is appointed, then the assets of the incapacitated person will be under the supervision of the court examiner and the court.  It is critical that you keep detailed records of every expense, including but not limited to bank statements, copies of checks, rent stubs, and receipts.  Every May, you will have to submit an annual accounting, which includes records of every deposit, and every debit, made on behalf of the incapacitated person.  You will have to send the accounting to the court examiner with copies of bank statements, checks, and receipts for any significant purchases.  Additionally, you will have to file it with the court.  Whenever you want to make a significant expense for the incapacitated person, you will need to submit an application to the court examiner, who will recommend to the judge whether or not to approve it.  Those expenses will need to be approved by the judge.

Being a guardian is not easy, and it can be tedious.  However, always remember that you are making a huge difference in your ward’s life, by protecting his or her ability to thrive in spite of disability!

Joseph H. Nivin, Esq. is the owner of The Law Offices of Joseph H. Nivin, P.C. a firm with locations in Forest Hills, Queens, and midtown Manhattan.  The firm handles family and matrimonial law cases, Article 81 guardianships, immigration, foreclosure defense, landlord-tenant law, and bankruptcy proceedings.  You can find more information at www.nivinlaw.com.

Apply for your Guardianship Bond by clicking the link below or call us at 800-921-1008 to speak to a representative today.

Administrator, Executor, Guardianship Bond, Probate Bonds, Third Party Administrator

Administrator Bonds

At this critical time, many families will be affected in many ways by the COVID-19 outbreak across the country. One of those ways will be the loss of a loved one and the requirement for estate administration via the court system. This usually requires an Administration surety bond ordered by the court.

As Investopedia writes, “An administration bond is a bond that is posted on behalf of the administrator of an estate to provide assurance that they will conduct their duties according to the provisions of the will and/or the legal requirements of the jurisdiction.”

But it is much more than that. Facing the loss of a loved one can be difficult. Receiving and accepting the job of an Administrator implies a high level of responsibility to be taken on and can add to the stress and difficulty of dealing with that loss.

We are committed to helping ease that strain by making the bonding process easier to understand, navigate and achieve.

Your bond can be processed in as little as a day (sometimes faster, depending upon the complexity of your situation) and does not require trips to an office location. It can be done securely online with BFBond.com

We can assist you with all types of probate bonds: Administrator, Executor, Conservator, Guardian, and Trustee Bonds. Click below to apply today.

Administrator, Administratrix, Appeal Bond, Attachment Bond, Committee Bonds, Conservators Bond, Court Bond, Curator Bond, Custodian of Veteran Bond, Discharge Bond, Dissolve Injunction Bonds, Executor, Executrix, Garnishment Bonds, Guardianship Bond, Injunction Bonds, Personal Representative/ Administrator/ Executor Bond, Probate Bonds, Probate/Fiduciary Bonds, Receiver/ Assignee Bond, Release Bond, Replevin Bond, Stay of Excution Bonds, Supersedeas Bond, Surety Bonds, Testamentary Trustees Bonds, Trustee Bond

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.
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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:
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• Trustee in Liquidation Bonds
• Trustee in Reorganization Bonds
• Attachment/Garnishment Bonds
• Replevin Bonds
• Injunction Bonds
• Indemnity to Sheriff
• Counter-Replevin Bonds
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• Release Attachment/Discharge Garnishment Bonds
• Dissolve Injunction Bonds
Contact us:

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William Fleischer, CIC

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

 

Probate Bonds

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

 
Probate Bonds

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.

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.

Probate Bonds

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.