Most wills and trusts contain a provision waiving bond.  The reason for doing so is that in California, the probate court will require a bond unless all of the beneficiaries sign a waiver of bond.  Sometimes the court will require a bond even when the Will waives bond or when the bond waivers have been signed.

For example, if the executor lives out-of-state, more than likely the probate court judge is going to order a bond even with a provision waiving bond and even if all of the beneficiaries agree to the waiver of bond.  Another reason for requiring a bond is if the estate has debts or creditors.  The probate court wants to be certain that creditors (including credit cards, companies, hospitals, etc. ) are paid.  The only leverage the court has over the executor/administrator/personal representative is a bond.

The purpose of the probate bond is to protect the other beneficiaries as well as the creditors in case the executor/administrator/personal representative decides to take the assets and run.  The bonding company, prior to issuing the bond, requires the individual applying for the bond to complete an application and it does its own credit check. Obviously some people will not qualify for a bond.  An experienced probate lawyer can assist in these types of situations.

The cost of the bond is tied to the size of the estate being probated.  For a $200,000 estate, the cost is approximately $860; for a $500,000 estate, the cost is approximately $1,760; and the premium increases from there.  In all cases the first year’s premium is non-refundable.  For probate’s that take longer than a year, the premium is on a pro rata basis with the entire premium being paid at once and then the bond company refunds upon the closing of the probate.