Understanding a Probate Bond
Certainly, you likely do understand the basics of a Last Will and Testament. Indeed, there may be many elements of what technically is known as probate procedure that you actually are at least basically familiar with. However, you may not have an essential appreciation of what is meant by the term “probate bond.”
Generally speaking, a bond is a type of insurance coverage that is designed to guarantee certain performance and to provide protection against a failure of that promised performance. In the case of a probate bond, the probate bond is designed to ensure that a person involved in a fiduciary capacity with a probate matter honors his of her commitments. In the event that this does not occur, in the event (for example) that a fiduciary absconds with money -- the probate bond is present to cover any such losses.
There are many different types of situations in which a probate bond comes into play. Take, for example, a situation in which a Last Will and Testament has been admitted into court for the purposes of probate. (By that it is meant assume that a Will has been filed with the court so that the final wishes of the person who has died can legally be carried out.)
The Will will include a provision that appoints someone to serve as the executor of the estate. The executor is the person responsible for taking control of the property of the estate and is ultimately responsible for seeing that the wishes of the person who has passed are carried out.
Unfortunately, there are instances in which the executor does not deal honestly with the assets and affairs of the estate. Therefore, prior to the time that the executor begins serving the estate, the executor will be obliged to obtain a probate bond to protect the estate and the heirs from any acts or omissions on the part of the executor.
In a similar vein, if a person is appointed to serve as the conservator over a person’s finances while that person is still living, the court can require (and usually will require) that the conservator obtain a probate bond in advance of assuming his or her duties. In this way, the property of the person who is under a conservatorship will be protected against the wrong doing of the conservator. The person under the conservatorship will have appropriate protection against the wrongdoing of the probate thanks to the surety bond.
