For most estate matters, the creator of a will may choose to appoint an executor or an administrator. This is a person who is entrusted with the management and distribution of the estate property upon death or incapacity of the estate holder. The executor plays a very important role, and is entrusted with various tasks and executor duties.
These tasks may include gathering and identifying the estate assets; compiling information regarding the beneficiaries and recipients of the property, as named in the person’s will; arranging for payment of outstanding debts and taxes on the property; filing various forms, and many other duties.
What is an Executor Bond?
In order to ensure that the executor will perform their duties, some states require that the executor post a bond. This is a certain amount of money ensuring that they will perform all of their duties as an executor of the estate. Executor bonds can sometimes be purchased, much like an insurance policy.
In the event that the executor intentionally fails to perform their duties, or violates the law in connection with their duties, they may forfeit the executor bond amount. Thus, the bond acts as incentive for the executor to perform their duties in a manner that is reasonably efficient and in conformity with the law.
Are Executor Bonds Required by Law?
The laws on executor bonds may vary by state. In some states, the executor is required by law to post a bond before they begin to fulfill their contractual duties as an executor. This is especially common for larger estates or for distributions that involve much value. However, not all states make this a requirement.
In some cases, the estate holder may specifically request in their will that no bond be required of the executor. If this provision is held as valid, then the executor will not be required to post an executor bond.
Do I Need a Lawyer for Help With an Executive Bond?
Executive bond requirements may be very different from state to state. If you need assistance with the wills and estate laws in your area, you may wish to hire a qualified estate lawyer immediately. Your lawyer can provide you with legal advice on how to fulfill bond requirements. Also, if you need to include an executor bond provision in your will, a lawyer can assist you with that as well.