Probate bonds are made to protect the deceased’s estate from incompetence, fraud and other bad actions by the executor of the estate. The executor is required to post the bond and the bond’s principal is returned to him once the estate gets closed if he hasn’t engaged in an action that might have led to loss to the estate.
The probate bond is also known by the name of executor bonds, estate bonds and fiduciary bonds. The one who behaves ethically will get the funds from a probate bond upon the closing of the estate. The amount will not include the bond issuer fees which is non refundable in nature.
The amount of the probate bonds in NY differ depending on what the size of estate is. The amount paid is not all but a percentage of the bond depending on the laws of the state. The bond fee can be paid either by the executor or estate depending on where the estate is placed. Each state has their law regarding it.
Probate bonds are designed so that if an executor fails to live up to his duties and obligations, then the estate and beneficiaries can be protected. The beneficiaries will be compensated if the executor loses the assets of the estate or behaves unethically. The bond gives the estate’s beneficiaries reassurance that they won’t have to bear the loss and will be repaid.
Depending on the size of the estate the amount of the bond is calculated. In case of no harm done to the estate, the executor will receive the complete amount of the bond once the probate process finishes.
