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 Massachusetts probate bond needs.
What Are They?
Probate bonds are a type of court bond—aka, surety bonds that a court orders a given individual to purchase. A probate bond guarantees that a person appointed to fulfill a fiduciary role will carry out that role in a lawful and ethical manner. If they do not, they will be required to compensate any party suffering a financial loss as a result of the fiduciary’s malfeasance.
A probate bond protects the court against liability stemming from the appointment of the individual to serve in a fiduciary capacity. It also provides a source of funds for compensating those with valid claims against the probate bond.
Who Needs Them?
You may need to purchase a probate bond if you have been appointed by a Massachusetts probate court to serve as:
- Executor or administrator of a deceased person’s estate
- Trustee administering a trust for its beneficiaries
- Guardian or conservator responsible for making decisions for a minor or an incapacitated adult
A fiduciary typically occupies a position of trust and is responsible for managing the assets of another person, so possible misappropriation of funds is always a concern. Massachusetts will waive the requirement for a probate bond under certain circumstances. For example, this could occur when the terms of a will specify that no probate bond should be required or when all beneficiaries agree to a waiver of the bond requirement.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
A probate surety bond agreement specifies the conduct that would constitute a violation of the agreement. Any violation by the fiduciary that causes financial harm to the beneficiaries, creditors of the estate, the trust, the minor, or an adult ward in a guardianship exposes the fiduciary to the possibility of claims against the probate bond.
When a claim is filed, the surety company that issued the bond will conduct an investigation to determine the claim’s validity. If the claim is found to be valid, the surety company will go ahead and pay it on behalf of the fiduciary if no amicable settlement can be negotiated. That payment is not a gift. It represents the activation of a line of credit extended by the surety company to the bonded fiduciary and must be repaid in full, usually in installments over a period of time.
What Do They Cost?
The required amount of a probate bond is based on the amount of the estate or the assets under the fiduciary’s control and management, including real estate. The surety agency sets a premium rate that reflects the fiduciary’s creditworthiness and financial strength. The more qualified the fiduciary is, the lower the premium rate—as low as 0.5% to 1% for a financially-stable individual with excellent credit.
Get a Quote
Request a convenient online quote today, or call us to discuss the probate bond you may need in order to serve in a fiduciary capacity in Massachusetts.