New York Administrator 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 New York administrator bond needs.
What Are They?
New York administrator bonds are a type of probate bond—a surety bond required by a probate court when someone is appointed to manage assets belonging to someone else. In the case of an administrator bond, that “someone else” is the estate of a deceased person, and ultimately the deceased heirs.
Administrator bonds are sometimes referred to as executor bonds, but they are two different things. An executor bond is required when the deceased’s will named a specific executor. An administrator bond is required when the deceased did not leave a will and the court appoints someone, usually one of the main heirs, to serve as administrator to distribute the estate’s assets to heirs and creditors of the deceased.
An administrator bond guarantees that the administrator will act lawfully and ethically in carrying out his or her duties. It also provides assurance that protect the heirs against financial loss in the event that the administrator fails to distribute their inheritance to them.
Who Needs Them?
If you are named by a New York Surrogate’s court to serve as administrator for the estate of a deceased person, you may or may not be required to purchase an administrator’s bond. That decision is at the discretion of the judge.
If a bond is required, it must remain in place until all of the estate’s assets have been distributed. The judge will establish the required amount of the bond based on the total value of the estate.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The administrator is responsible for settling the deceased’s estate—a process that can take some time. While one would hope that an administrator properly carries out the fiduciary responsibilities associated with that role, that is not always the case. An heir who can prove that he or she did not receive the inheritance due to them, or received less than their fair share, can file a claim against the administrator bond.
The surety bond company will investigate any claim to make sure it is valid before paying it. And although the surety company usually pays valid claims upfront, on behalf of the administrator, the legal obligation to pay claims rests with the administrator. Consequently, the administrator must repay the surety company for any claims paid on his or her behalf.
What Do They Cost?
The annual premium for an administrator bond is a small percentage of the required bond amount established by the Surrogate court. The surety agency assigns the administrator a premium rate based largely on the administrator’s personal credit score and the size of the estate.
For an administrator with good credit, the premium rate is typically in the range of 1% to 2%. It may be difficult for a person with poor credit to demonstrate sufficient financial responsibility to qualify for a New York administrator bond.
Get a Quote
You can count on our surety bond professionals to get you the New York administrator bond you need at a competitive rate.