Administrator Bonds
What is an Administrator Bond?
An Administrator is a fiduciary appointed by the court, in the absence of a will, to manage or distribute the assets of an estate and pay all claims and debt. An Administrator is appointed by the court because an individual has died without a will.
An Administrator Bond (also commonly known as a probate bond) guarantees the proper distribution of assets when the Administrator takes possession of the descendant's property and arranges for appraisals, collection of debts due to the estate, and payment of all debts and claims against the estate according to state law.
The principal is the Administrator to the estate. The Obligee is the Court.
An Administrator CTA is when the insured is replacing the previous administrator of the estate.
Guarantees: The individual appointed by the court will faithfully perform collection assets of an estate, pay all debts and distribute the remainder to heirs according to statutes.
The court will decide on the bond amount and provide the bond form to be completed by the agent on approval is given by eSurety or by the Selective underwriter. The agent will need to obtain a completed, signed application from the insured. Once the bond is in the system it may or may not automatically be approved. If the bond is approved a bond number will appear on the decision screen and you may print the pertinent paperwork to be attached to the completed bond form provided by the court. Attach to the bond Selective’s Statement of Financial Condition and the Notice of Terrorism. The transaction report is for agency use only, DO NOT give to the insured. The other documents that print out are for the Administrator’s use: an outline of Administrator’s Duties; and a sample of the Release and Refunding documentation, along with a blank copy of the Release and Refunding. Explain to the insured that each heir to the estate has to sign in front of a witness and notary a Release and Refunding document. These documents must be filed by the court and your Selective bond underwriter must receive a copy(ies) to close the bond. Be advised that most often the court will just stamp each Release and Refunding with a filed date; or they may provide a receipt or certificate indicating that they are satisfied with the Release and Refunding filings; but we need this in order to close the bond.
Q. Why do I need an attorney if I am purchasing a Bond as the Administrator of the Estate?
A. Depending on the size of the bond and the assets, Surety company’s (bond companies ) like to see an attorney involved on bonds over $100,000 to assist and/or direct the administrators in distributing the estate. Many administrators have no experience in dealing with stocks, bonds, current active businesses, real estate, etc. that may need to be liquidated and distributed to the heirs. Also, if the administrator is elderly, they may not outlive their administrator’s duties, if for instance the assets are not liquid.
Suydam Insurance Agency will provide clients:
- Competitive rates on Administrator Bonds
- Quick, responsive and knowlegeable service
- Guidance through the process of obtaining Administrator Bonds
Please click here for a bond application . You may complete the form, print and sign it. Then either mail, scan and email (insure@suydam.net), or fax (732-846-6542) the application form to us. We will contact you with a quote as soon as possible
