Estate Planning Terms: Executive Bond Waivers

Once an individual dies leaving behind property, somebody has to handle the obligation to manage that property and then move it to new owners. This individual, referred to as an administrator or an administrator, has an unique responsibility to protect the estate property and to see the decedent’s wishes are followed.

To secure versus any possible errors or misdeed on the part of the executor, states often require the executor to post a bond– a specific amount of money– so any damage triggered can be paid back. In lots of states the bond can be waived but just under specific situations. Speak with a lawyer in your location for state-specific advice about bond waivers.
Testamentary Waiver: A person who produces a Will, called a testator, gets to choose who acts as his or her administrator. Testators can likewise select to let the administrator serve without having to post a bond. This bond waiver is not required to create a Will, however without it the administrator will generally need to post a bond.

Voluntary Waiver: Executors may likewise be able to waive the bond requirements if they get a waiver contract from the successors or beneficiaries of the estate. If all the beneficiaries consent to the waiver in composing, the administrator can submit their contract to the court of probate and ask the court to waive the bond requirements. This might not be possible in all states, so talk to a lawyer.