Transferring property from someone who died can add stress to an already emotional time. Factor in the lengthy probate process in California — on average nine to 12 months — and it becomes clear that you need a trusted professional by your side.

During that time, an executor or personal representative must pay bills, sell assets when appropriate, and shield property from theft. In order to protect against mismanagement, you may need a probate bond. Keep reading to learn more about requirements, how the process works, and answers to common questions.

Just because you need a probate bond in California does not mean you do not trust the executor, administrator, or personal representative. However, having that insurance mechanism in place can ease everyone’s mind. A People’s Choice can help you navigate the process without adding the cost of an attorney into the equation.

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…or continue reading the article below to learn more about when you need a probate bond.

What is a Probate Bond?

A probate bond operates similarly to bail in a criminal court. The bond is a sum of money that serves as an estate’s insurance policy against mismanagement by a court-appointed individual who is responsible for handling the estate. The named personal representative, executor, or estate administrator has a fiduciary duty to act in the estate’s best interest. If they fail, the probate bond goes to the estate as reimbursement for executor mismanagement.

Why You Need a Probate Bond

When a person files for probate in California, the court will name a person to represent the estate. This person will manage the estate during the probate process, and the job comes with certain duties and responsibilities. The probate process usually takes between nine and 12 months but can take longer if there are unexpected issues. During this period, someone will need to pay bills, sell assets when appropriate, and protect the property from theft. Usually, the personal representative handles this.

Unfortunately, that responsibility comes with the temptation to abuse it. Imagine, for example, an estate’s executor or personal representative selling off a valuable painting and pocketing the returns. That type of mismanagement poses a devastating potential threat. 

The personal representative could make a mistake that costs the estate serious money, such as failing to pay the mortgage on a home in the estate leading to foreclosure. Even if the estate representative meant no harm, the financial damage to the estate remains. You need a probate bond to protect against deliberate or unintentional mismanagement and negligence.

Requirements for a Bond in Probate

In California, courts will require a probate bond as a matter of course. However, many people include in their will a waiver of bond probate. If the decedent did not leave such a provision, the beneficiaries of the estate might also agree to waive the requirement. In this latter case, however, every beneficiary must be in agreement. It should be mentioned that if a personal representative lives out of state, the court will likely require a bond, even with a bond waiver by all beneficiaries.

If you wish to receive a waiver of bond probate, you must attach the request to the petition for probate. A great deal of detail is required, for example, disclosure of unsecured creditors to the estate and any amounts owed to them. The documents should also estimate the estate’s tax liabilities, indicate solvency of the estate, and include a statement of due diligence.

If you do not have the right information included, that waiver will likely remain unapproved. A People’s Choice can assist you in getting a probate bond waiver or, on the other hand, getting a probate bond if necessary. You can even save money in the process.

See just how much you can save by avoiding costly attorney fees.

How Probate Bonds Work

Just applying to waive the bond requirement does not automatically mean the court will grant your request. As mentioned above, if the executor lives outside of California, a probate bond will likely be required. Another interested party could also petition the court to keep the bond if they can show a valid reason for doing so. Then, the court will likely keep the bond requirement in place.

If you find yourself in need of a probate bond, the size of that bond relies on the size of the estate. In some cases, the named executor in a will may not have enough money to put up the bond. Fortunately, surety companies will help with this. Be aware that the surety company will run a credit check on the person requesting the bond since they are responsible for reimbursement in the event the bond is surrendered. Don’t worry, though. If the estate is managed properly, the executor gets the bond back. Fees paid to the surety company will be non-refundable. A People’s Choice can refer you to several bonding companies willing to work with self-represented estate representatives.

FAQs

What is a probate bond?

A probate bond is often compared to an insurance policy when it comes to handling an estate. If a court-appointed individual responsible for the estate is found to be mismanaging funds, the estate then receives the probate bond as reimbursement.

When is a probate bond required?

A probate bond is typically required when the court decides an executor, administrator, or guardian of an estate is necessary to provide financial protection for the estate and its beneficiaries. This could involve cases with large or complex estates, guardianships, disputes over a will or estate plan, and as law requires.

How long does it take to get a probate bond?

This will vary by jurisdiction, but in California, probate bonds take an average of nine to 12 months to obtain.

Is a probate bond refundable?

Probate bonds are generally nonrefundable. In order to completely understand the terms of a probate bond, it’s important to partner with an expert in legal documentation.

What is a probate bond waiver?

People can include in their will a waiver of bond probate, which exempts the executor from needing to obtain a probate bond. If the decedent did not leave such a provision, the beneficiaries of the estate might also agree to waive the requirement. In this latter case, however, every beneficiary must be in agreement. It should be mentioned that if a personal representative lives out of state, the court will likely require a bond, even with a bond waiver by all beneficiaries.

Handle This Process Right

Dealing with the issue of whether you need a probate bond can be complicated. Getting the court to not require a bond can be equally complex. 

Sometimes executors want to waive the bond but beneficiaries do not. It can be stressful knowing that substantial money is riding on your proper handling of the probate process. Remember, time is money. The court will require a personal representative to renew the bond every year the probate case remains open. Because of this, many people end up paying for bond renewal simply because of delays in completing the probate case. This often happens when someone is trying to complete probate without professional help. A People’s Choice completes most of our probate cases in less than 12 months, saving our clients thousands of dollars in unnecessary bond renewal fees.

A People’s Choice can help everyone involved in the probate bond equation. If you are wondering if you need a probate bond, we can help you find out. Want to waive the probate bond requirement? We will help in that process as well. Don’t want to waste money on unnecessary bond renewal fees? We will make every effort to complete your probate case in the fastest amount of time. 

Contact us for more information on probate bonds and the probate process so you can navigate this potentially difficult experience and complete your California probate. Call us today at 805-648-5540.