Executor Bond Illinois

Executor Bond IllinoisProbate bonds may vary state-to-state making it difficult to know what the state mandates and requires. To help make fiduciary bonds more understandable, Jurisco is putting together series of blog posts related to court bonds and state requirements. Today we delve into Executor Bond Illinois.

What is an Executor Bond and who needs it?

Executors, persons/company in charge of an estate or inheritance, are required to obtain an Executor Bond Illinois to financially cover their actions. This surety bond protects the beneficiaries and estate against any wrongdoing by an executor should they fail to manage the assets properly. An executor bond would cover beneficiaries, for example, if their inheritance is stolen; however, it also holds the executor responsible for paying the bond back.

Why do Illinois Courts make this requirement?

An Executor is in charge of the financial being of an estate including paying taxes, settling debts, contacting beneficiaries and properly handing real estate. The Illinois Executor may also pay themself for completing these services. Since the estate’s quality rest in the hands of the Executor, the state must ensure a proper job and provide legal recourse otherwise.

Does Illinois require a fiduciary bond if the executor lives out of state?

The state of Illinois does not mandate the residence of an executor. He/she may live in any state, but must follow the same guidelines. A person living in Alabama, for example, would still need to obtain a probate bond if the estate is in Illinois.

Is the probate bond based on the value of the estate?

The value of the estate influences the cost of an executor bond as well as its necessity. Illinois probate courts may not require a surety bond if the estate is valued less than $100,000.

Are multiple bonds required if there’s more than one executor?

There may be multiple executors of an estate, called “co-executors”. If there turns out to be more than one executor, however, only one “co-executor bond” will be required for the estate unless the court orders otherwise. Alternatively, if no one is found willing to serve, the public administrator in the respected Illinois county would handle the estate.

What happens if the Executor fails to obtain a surety bond?

When a court mandates an executor bond, the bond must be secured before an executor can access the estate and inheritance.

Does the surety bonding company have to be located in Illinois?

The executor may obtain the surety bond from whichever bonding company they see fit. This could mean a surety bonding company in Illinois or a nationwide provider including Jursico.com.

Executors are responsible for taking inventory of and protecting the estate’s assets, trying to find heirs to the estate, paying off any outstanding debt attached to the estate, making sure the taxes are paid and calculated correctly for the estate, and so on and so forth. 

Some states will also require that executors obtain an Executor Bond in order to protect both the deceased individual and the beneficiaries of this individual from dishonest acts such as embezzlement, fraud, and other acts of this sort.

Trust the Surety Bond Experts

The Jurisco lawyer-trained staff are here to help you today.