A common type of surety bond in Massachusetts is a personal representative bond. One of the required surety bonds by the state, a personal representative bond (also known as an administrator or executor bond) is required for anyone overseeing the handling of another estate.
What Is A Personal Representative?
When a person dies in the state of Massachusetts a personal representative or executor must be appointed to oversee the handling of the deceased’s estate. People have the opportunity to plan ahead and choose this person themselves. The court will also name an administrator should the position be vacant.
In general the personal representative is a family member. There are situations, however, where the estate will be overseen by a firm or a company. The same rules apply no matter who is granted the responsibility.
Why Is A Surety Bond Required?
The Massachusetts Court requires a personal representative bond as a sort of fail-safe to protect the integrity of the estate. The person who is wrapping up the estate, making sure debts are paid, and notifying necessary parties, has a lot to handle. Depending on the size of the estate a personal representative can have their work cut out for them. Big or small the court will be watching to make sure all the I’s are dotted and T’s crossed.
When something is mishandled the surety bond protects the estate, and involved parties, from financial harm. Even without this bond legal action can be taken against a personal representative. However, with a surety bond in place the estate and all involved parties (creditors and debtors) do not have to wait for a final judgment to be made in the case because they have the bond to cover them financially.
How Much Does An Executor Bond Cost?
The cost of an executor bond is determined by the value of the estate and what all needs to be done to wrap up the last will and testament of an individual. A person who is drafting their will can set the bond amount (as can the Courts). They may also waive the requirement of a bond, but the court can always impose it if it is deemed necessary.
To receive more information about a personal representative bond or other types of surety bond in the state of Massachusetts contact the Jurisco office. Our team of highly trained professionals can answer your questions quickly and start the bond process fast.