A personal representative bond is a special type of California surety bond. Today, we are diving into the California personal representative surety bond to see what it is and why it is used.
If you have questions about other types of surety bonds please send us a message. Or if you want to skip the questions and contact a surety bond expert to start the application process, we invite that, as well.
A Personal Representative Bond in California is required to protect the interest of the deceased’s estate, its heirs and those parties who are owed money. The responsibility of a personal representative (commonly referred to as an administrator or executor in California) is taken seriously by the courts. Courts mandate the surety bond as a form of protection for all parties. While the surety bond protects the heirs and creditors of the estate, it is also a protection for the personal representative to ensure she/he fulfills their duties responsibly.
When a person dies, 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.
On average, the deceased will name the personal representative in their will. However, if this does not occur the responsibility could be entrusted to the closest living relative or even to a financial institution (like a bank) that will oversee the account. A California judge may appoint a person to the position after a probate examiner reviews the petition and estate information.
Being named as a personal representative of an estate is a big deal. The court holds the overseer to all his or her actions in order to protect heirs and creditors of the estate.
The duties of a personal representative, executor or administrator in California include the following:
All of these tasks and more, including the day-to-day details, rest on the shoulders of an executor. Given the amount of responsibility an administrator holds it is necessary for the personal representative bond to fully cover these actions.
There are situations where the California requirement for a personal representative bond can be waived. For instance, the deceased could explicitly state there is no need for a bond. Another scenario is when all the heirs of an estate jointly decide to waive the mandate.
Even if the will and the heirs waive the bond requirement a California judge may still mandate the administrator use a probate bond to protect the estate. This is normally the case when the executor lives outside of the state.
California executor bond statute explains how a personal representative bond amount is determined:
8482. (a) The court in its discretion may fix the amount of the bond, but the amount of the bond shall be not more than the sum of:
(1) The estimated value of the personal property.
(2) The probable annual gross income of the estate.
(3) If independent administration is granted as to real property, the estimated value of the decedent’s interest in the real property.
(b) Notwithstanding subdivision (a), if the bond is given by an admitted surety insurer, the court may establish a fixed minimum amount for the bond, based on the minimum premium required by the admitted surety insurer.
(c) If the bond is given by personal sureties, the amount of the bond shall be twice the amount fixed by the court under subdivision (a).
(d) Before confirming a sale of real property the court shall require such additional bond as may be proper, not exceeding the maximum requirements of this section, treating the expected proceeds of the sale as personal property.
The executor bond lasts as long as it takes to formally settle an estate. Sometimes this can be achieved in as little as eight months while other estates take years to settle. The longevity of the personal representative bond will impact the cost of the surety. Make sure to discuss this point with your Jurisco representative when you contact them about personal representative bonds.
Working with a reputable surety bond company is of utmost importance when securing a personal representative bond. The family of the deceased has dealt with enough grief and heartache. Throwing frustration over a surety bond on the pile isn’t fair and it isn’t necessary.
Jursico is a nationwide surety bond company with California surety bond experts ready to work with you. Take the hassle out of the bonding process. See what clients nationwide come back to Jurisco time and time again. Ready to get started? Contact Jurisco about personal representative bonds today.