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 California probate bond needs.
What Are They?
Probate bonds are a type of court bond intended to ensure that certain people appointed by a California court to manage the assets of another person do so in a lawful and ethical manner. The specific type of probate bond required depends on the circumstances of the appointment.
In addition to guaranteeing proper behavior while serving in a fiduciary capacity, a probate bond ensures that funds will be available to compensate a person or persons who have experienced a financial loss because of the bonded individual’s malfeasance.
Who Needs Them?
Each type of court appointment requires a different type of probate bond. For example:
- The executor of a deceased person’s estate will need an executor bond, also known as an estate bond.
- A person appointed to handle the finances of a minor and make important decisions for the minor will need a guardianship bond.
- The person managing a trust will need an Administrator bond, and so on.
When the appointment is to manage the affairs of one person only, the designated individual is called a “personal representative.”
Not all court appointments will require the purchase of a probate bond. Specifically, a decedent’s will may specify that no estate bond is required. In such cases, the court may still decide to require a bond unless all beneficiaries waive the bond agreement in writing.
A valid probate bond must remain in place or risk being removed from office by the court.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
In surety bond language, the court requiring a probate bond is called the “obligee,” the personal representative required to purchase the bond is the “principal,” and the bonding company that approves the bond is known as the “surety.” A surety bond agreement is legally binding between all three parties.
If the principal is found responsible for a financial loss incurred as a result of his or her poor decision-making, negligence, fraud, or other misdeeds, the injured party has the right to file a claim against the bond. But the principal doesn’t have to make immediate payment, because the surety will likely pay the claim upfront. The surety will only pay a claim after conducting a thorough investigation of the matter. In paying a claim on behalf of the principal, the surety is, in effect, lending the principal money, and the principal is legally obligated to repay that debt.
What Do They Cost?
The annual premium for a California probate bond is a small percentage of the required bond amount. The court will determine the required bond amount based on the value of the assets under the principal’s control and management.
The premium rate is established by the surety based on their assessment of the amount of risk involved—specifically the risk of claims and the risk of not being repaid by the principal. The principal’s personal credit score is the primary consideration. Good credit means a low premium rate.
Get a Quote
You can count on our surety bond professionals to get you the California probate bond you need at a competitive rate.