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What Is a Surety Bond? Definition, Uses and Importance.

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Surety bonds are typically used to protect against the risk of default by an obligee (such as a contractor).

Bonds guarantee that if your project fails, they’ll be sure and pay up. Surety bonds sometimes are important for probate or estate proceedings because if a project fails due to a key person passing away the surety bond will cover the cost of the lost assets are a result of the decedent not being able to complete the project.

Surety Bond Rider

the original terms of your company’s bonding agreement. This document will extend discovery for any pending lawsuits against you and/or those who have been acting as agents or representatives under your supervision in order to provide more time so that these matters may progress according to their course without interruption.

Why is a surety bond needed for probate?

A probate bond is a type of surety bond required by a court to ensure estate assets will be managed and distributed properly by a court-appointed fiduciary. Most typically, insureds needing these bonds are family members or trusted friends of a person who has recently passed away.

Probate bond and fiduciary bond are interchangeable umbrella terms that encompass the many court bond types required when individuals are appointed to act on behalf of others.

Probate Vs Feduciary Bonds

Fiduciary is a person that is given power over someone else’s interests and assets. Bonds required of fiduciaries include Executor Bond, administrators, Guardianship Bond, trustees and conservators.

Probate is the legal procedure in which the assets and wishes of a deceased individual are carried out.

In the case of fiduciary and probate bonds, a fiduciary might be appointed by a court to care for another individual or manage another’s finances through the probate process.

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