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Bonds Products

Company

SB-204

Probate

Probate Application SB-204

Who Needs Them

Persons appointed by courts to act as:

Administrators, Personal Representatives, Executors, or Trustees under wills of deceased persons' estates;

Guardians (called Conservators or Committees in some States) of minor children or persons unable to handle their own affairs.

These bonds are required by law. They are written on forms prescribed by the various states and are usually prepared by the applicant's attorney, or signed in a book at the court house.

Desirability

This is a desirable class. Probate Bonds are readily written except in a few situations which call for caution.

EXAMPLES:

  1. If the applicant is indebted to the estate, the bond may be held to guarantee the payment of his/her indebtedness, regardless of his/her solvency;
  2. If the bond is to be substituted for a prior bond written by another surety, the Company will desire evidence that the estate has been properly handled to date, and that no shortage or trouble exists;
  3. If there is an ongoing business in the estate, which is to be continued by the fiduciary, the Company will want to make sure that he/she obtains a written order from the Court permitting him/her to operate such business.
  4. If a bond is needed in a state that has the Uniform Probate Code, which waives the bond requirement, the Company will want to know the reason why.

Risks where any of these circumstances exist should be referred to the Company.

Renewal Premiums

Probate bonds are continuous and cannot be cancelled before the closing of the estate except by court proceedings that may involve considerable time and expense. Renewal premiums will accrue automatically on each anniversary date of the bond until the principal and the surety are legally released. The agent should protect themselves against possible difficulties in collecting these annual premiums by having a definite understanding with the principal that he/she is personally responsible for their payment until the surety's liability under the bond is legally terminated, even though there may be no funds left in the estate.

It is a good idea to collect as many renewal premiums in advance as possible when the bond is expected to remain in force for a number of years. A discount is applicable to any renewal premium paid in advance two or more years.

To assist in handling small estates, we will waive renewal premiums on administrator and executors bonds where the bond is $25,000 or less. Term minimum premium on these bonds is $75.00.

Sources of Business

Attorneys, court clerks, financial institutions handling estates.