Tag Archives: probate bonds

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

(And why they both should be bonded)

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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

 

Probate & Fiduciary Bonds quick definitions

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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.

Guardianship Bonds & Guardian Bonds

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Bernard Fleischer & Sons Inc. can guide you through the process of obtaining the guardianship bond often required. We have extensive experience in placing probate / fiduciary bonds.

 

What is a Guardianship Bond?

A Guardian is a fiduciary appointed by the court to manage the estate of a minor or incompetent. Most bonds are written for multiple years, depending on the individual circumstances.

A guardianship bond is a type of fiduciary bond. Like all fiduciary bonds– a subcategory of court bonds– the guardianship bond is required by an assigned person who handles the property and monies of a minor or otherwise incompetent person. Subject to its specific terms, this bond guarantees honest accounting and faithful performance of duties. These bonds are customarily filed in a probate court.

 

What do Guardianship Bonds do?

Guardianship Bonds work similar to insurance. But instead of protecting you, they protect the person you are caring for. They protect against losses or damages should you (the guardian) behave improperly or unethically. This means if you steal money from a minor’s trust that you are caring for, a claim can be made against your bond, they guarantee you will not abuse or neglect the person you are caring for. And if you do, the minor or incapacitated individual is protected by the bond.

 

How to get a Guardianship Bond

Our Surety Bonding Agency is a full-service, national surety bonding agency, licensed in every U.S. state to serve all your needs. Our team is proud of our attentive service and quick turnaround times. We provide responsive, knowledgeable assistance to attorneys, fiduciary and other individuals in need of all types of probate bonds and other court bonds.

For further information about guardianship bonds see our article When is a Guardianship Bond Required for Minors and the Incapacitated?, email Jose Ward at jw@bfbond.com, call us at 800.921.1008 or fill out an application here.

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