It’s the start of a new year and that means making resolutions, life changes. Life happens quickly and doesn’t last long enough. Building a strong financial estate can seems as it takes long enough, but that hard work can be wasted with the misuse of funds and assets by an Administrator. An Administration Bonds helps maintain the integrity of an estate when you can no longer keep watch.
Texas residents may hear Administration Bonds referred to as Executor bonds or Personal Representative bonds. Despite the name, they all three have the same purpose: to guard against fraudulent or imprudent handling of a decedent’s estate. Paying off debt, contacting creditors, notifying beneficiaries and handling tax issues all fall under the realm of an Administrator’s responsibility. When these duties are not properly met, the beneficiaries could be on the hook for the newly created debt.
An Administration Bonds protects the worth of an estate by giving beneficiaries and creditors the ability to hold the administrator accountable. Without this bond, it might take years, if ever, for beneficiaries to recover. These bonds are so important that even when last will and testaments include a clause waiving the Administration Bonds, a Texas court may still require surety bonding.
Are you trying to determine if you need an Administration Bonds? A Jurisco professional can answer these questions for you by either email or phone. We also have applications online that explain the process. It may be hard to think about not seeing another year when at the start of a brand new one, but it’s not morbid to want to protect your loved ones. It’s not pessimistic to want what’s best for them after you’re gone.