Do You Have to Post a Bond if You are Executor and Beneficiary?
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If you have received appointment as executor of a will and made formal acceptance before a probate judge, you may have to post an “executor” or “fiduciary” bond as a pledge of your good faith in carrying out the wishes of the deceased.
The executor of a will assumes considerable responsibility for management of the deceased person’s estate. He prepares an inventory of the decedent’s real and personal property for formal presentation to the probate court; the obligation of securing these assets and ensuring their safe preservation until the time of distribution to the heirs also falls upon the executor; he/she must further arrange the timely discharge of debts from the assets of the estate and pay any taxes that are owed. He has, if necessary, to locate the heirs and inform them of the terms of the will. Managing the estate takes approximately a year, after which time the executor must provide a formal accounting of his duties to a judge.
The authority given to the executor creates opportunities for misconduct, and the court mandates the payment of a bond to safeguard the estate against potential fraud, embezzlement, or mismanagement. The amount of the bond depends on the wealth of the estate; the bond is discharged by the judge after the executor performs his duties.
The fiduciary bond functions as insurance against executor malfeasance. Even close family members at times will succumb to financial temptations, so the bond helps to keep everyone honest, while protecting the value of the estate and guaranteeing fulfillment of the decedent’s wishes.
Attorney Maureen Higham’s primary areas of practice are bankruptcy, probate, wills and trusts, family law, real estate and corporate formations. Attorney Higham has more than 20 years of experience in the legal field.
Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.
