Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Alabama probate bond needs.
What Are They?
Probate bonds are a type of court bond. Also referred to as fiduciary bonds, probate courts order them to be purchased by people being appointed to serve in a fiduciary capacity to manage assets belonging to someone else.
An Alabama probate bond serves as a fiduciary’s guarantee to act in the best interest of the individual whose assets the fiduciary is managing. It ensures that they remain in compliance with all applicable state laws and the terms of the surety bond agreement. The bond provides financial protection for the person whose assets are under management, and for any creditors or beneficiaries.
Who Needs Them?
Alabama probate bonds may be required when an Alabama court appoints someone to serve as:
- An executor named in a deceased person’s will to distribute the estate’s assets to creditors and beneficiaries
- An administrator appointed by the court to distribute the assets of a person who died without a will
- A guardian of a minor
- A custodian of an incapacitated adult
There are only a couple of situations in which the bonding requirement may be waived by the probate court with jurisdiction in the matter.
The required bond amount depends on the value of the estate or of the assets under the control of a guardian or custodian, including the value of any real estate.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The surety bond agreement for an Alabama probate bond is a legally binding contract between:
- The court ordering the purchase of the bond (the “obligee”)
- The fiduciary required to purchase the bond (the “principal”)
- The bonding company underwriting and approving the bond (the “surety”)
If the fiduciary violates the terms of the surety bond agreement by committing an unlawful or unethical act that causes a financial loss, the injured party has the right to file a claim against the Alabama probate bond. Examples of such violations include misappropriation or theft of funds, failure to maintain proper records of transactions involving estate assets or exercising poor judgment by making inappropriately risky investments.
The surety will investigate each claim and make sure it is valid before approving it for payment. Although the principal is legally obligated to pay all valid claims, the surety usually makes the payment on behalf of the principal. The surety makes claims payments from a credit line established for the principal at the time the Alabama probate bond is purchased.
What Do They Cost?
The annual premium for an Alabama probate bond is a small percentage, typically 0.5% to 1%, of the required bond amount.
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Our surety bond professionals will get you the Alabama probate bond you need at a competitive rate.