Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us via the web, by phone or come to our office and visit.
Question # 1. I do not understand why I am required to obtain Administration Bond for my father whom
recently passed away?
Answer: Your father passed away without a WILL... a WILL is a document that your father executes when he is alive which spells out whom will
handle his affairs & assets and how he wants them distributed after he is gone. The person appointed by the WILL is known as the
Executor and / or Executrix and typically is not required to be bonded.
Since your father passed away without a WILL and did not appoint anyone to handle his estate... the state is required to protect your
father's assets from whoever is appointed to handle aka Administrator. So in the event assets are not handled properly by the
Administrator the bond will protect the heirs and the bonding carrier will recover the money from the Administrator .
Bonding is not insurance but a financial guarantee sold by a insurance company.
Question # 2 Is the bond premium a 1x payment ?
Answer: No the bond has no expiration date... the bond premium has to be paid annually until the estate if officially finalized . The bond needs to
continuously protect the estate until all the assets are distributed . To officially settle the estate the bonding carrier requires forms
known as release and refunding fully executed and recorded by the surrogate court and or final accounting approved by the
surrogate court releasing the estate. The bond is only closed after the insurance carrier gives their approval.
Question# 3 How long does it take to obtain bond ?
Answer: In a perfect situation once we get the complete application during business hours we can get approval in minutes.
Question# 4 Can any person always be bonded ?
Answer: Not always...each bond may have different circumstance depending on the size of the bond (Dollar Amount) needed as required
by the surrogate court. The bond is unsecured meaning the bonding company does not retain any collateral from the
Administrator and relies solely on the application and credit check. For example if the administrator is required to provide
a $ 500,000 bond however they have poor credit and only have $5,000 in assets the bonding company would not approve a bond
by themselves and may require someone else to indemnify them.
Question# 5 Do I need attorney ?
Answer: The bonding carriers would like you to have one to handle the settling of the estate which may be very complicated. However
depending on the size of the estate and the applicant's qualifications the surety may not require.
Question# 6 My 10 year child was left $ 25,000 by their grandparents after they passed away...the bank will
not let me open a bank account for my child and indicated that they need to see that I am
Answer: The bank is correct the $25,000 is not your money, it is your child's. Since children are minor's until they are age 18 the state
needs to protect the child's money from the guardian by having guardian obtain bond to guarantee in the event the funds are
mishandled ...the child will recover their money from the insurance company. The insurance company would look to the
guardian for recovery.