Florida Probate Bonds
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 of your Florida probate bond needs.
What Are They?
Florida probate bonds are one of the two main categories of bonds that a Florida court can order an individual to purchase. Probate courts deal with matters related to estates, wills, guardianships, and other situations in which someone is court-appointed to manage assets belonging to someone else. Such appointments carry the legal obligation to act solely in the best interest of those on whose behalf the assets are being managed.
A Florida probate bond has two main purposes:
- It serves as the bonded individual’s guarantee to carry out the duties associated with their appointment in a completely lawful and ethical manner.
- It also ensures that funds will be available to compensate anyone who suffers a financial loss as a result of any illegal or unethical acts committed by the bonded individual.
Florida probate bonds play a crucial role in protecting the state of Florida and the public.
Who Needs Them?
The person named in a deceased’s will or appointed by a Florida probate court to manage the estate of a deceased person is called a personal representative. A personal representative is responsible for managing the distribution of the deceased’s assets to the surviving spouse and children or other relatives with the right to inherit. Personal representatives often are required to purchase a Florida probate bond.
Similarly, custodians of incapacitated adults and guardians of minors who are appointed by a probate court to manage the assets of their “wards” are also required to purchase probate bonds. In the language of surety bond agreements, these individuals are referred to as the “principal.”
In some cases, the court may approve a request to waive the bonding requirement. However, a bond is mandatory if the principal resides outside of the state of Florida.
The required amount of a probate bond depends on the size of the estate that the principal will be managing. Also depending on the size of the estate and certain other factors, the court may require the principal to put up collateral sufficient to satisfy any claims against the bond.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
A claim can be filed against a probate bond when the principal is found to have committed deliberate malfeasance, such as misappropriating or stealing estate assets. The surety bond agreement obligates the principal to pay all valid claims and indemnifies the surety bond company, referred to simply as the “surety,” against any responsibility for paying claims.
The surety will establish a line of credit for the principal to provide a source of funds for paying claims. The surety will pay a valid claim on behalf of the principal using the collateral or the principal’s credit line. Extending credit to the principal creates a debt that the principal must repay to the surety.
What Do They Cost?
The surety takes on some degree of risk in extending credit to the principal. Consequently, the surety’s main consideration in setting the premium rate for a given principal is the individual’s financial standing and creditworthiness. A principal deemed a good credit risk will pay a relatively low premium rate, but a credit-challenged principal will pay a much higher rate and may have trouble getting bonded.
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Our surety bond professionals will get you the Florida probate bond you need at a competitive rate.