Executor / Administrator / Personal Representative Bond
Executors, personal representatives, and administrators are responsible for finding the assets and identifying the debts. This may involve a thorough search! Many assets are never found and remain in limbo indefinitely. They are also responsible for paying any taxes due during the lifetime of the deceased and following his death and they are responsible for the debts to the extent of the estate. If they distribute the estate when there are outstanding debts they have to pay these out of their own pockets! This is one of the many reasons why it is sensible to have an expert probate solicitor on your side to ensure that you are protected and the estate is completed in the correct way.
There is a way of advertising for debts and of getting clearance on tax matters to protect the executors. Executors should preserve the property by ensuring that it is properly insured where relevant and stored securely. They also need to find and identify the beneficiaries. Again there are ways of protecting them by insurance if a beneficiary cannot be found after a thorough search.Executors are responsible for distributing the estate in accordance with the will.
The bond amount is determined by the court. It normally is set at the value of the liquid assets of the estate.
The bond guarantees that these duties will be performed in accordance with the will. Should there be a bond claim that results in a loss to the surety the executor / administrator will be responsible to reimburse the surety. The bond is easily underwritten unless there is a dispute within the estate. There must be an attorney of record in order to qualify for the bond.