Why Do Will Executors Need To Be Bonded?

February 27, 2019

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Choosing your will executor can be a daunting task because you are deciding on the person responsible for distributing your estate after your death. Many states, including New Jersey, require that will executors post a bond before carrying out their duties.

An executor bond (also sometimes called an administrator or probate bond,) is a bond issued on the performance of an administrator or executor to protect heirs and creditors from being harmed by the negligence or malfeasance of the administrator or executor.

Probate is a complicated process ripe with missteps. An executor is usually charged with gathering assets after your death and valuing them. They must then pay your debts and taxes, sometimes by liquidating your assets to raise the money.

If you named your estate as beneficiary of any investment or retirement accounts, they must pass through probate to transfer to others. Your executor may have to manage these throughout the process as well, as they are property of the estate and the executor has a fiduciary duty to make sure they maintain value.

In the case they do lose value due to fault of the executor, the insurer pays the loss to your estate. A surety bond does not protect your executor â€“ it protects your beneficiaries against your executor’s possible misconduct.

Some testators choose to waive the bond requirement if they trust their chosen executor. This can usually be done in a will. Some also choose to waive the requirement because the executor is an heir.

At Glenn Insurance, our bonding department can help secure surety bonds for your will executor with quick turnaround and reliable service. With Glenn Insurance, you get protection for your estate, along with the commitment to your needs and expert customer service that has been a hallmark of our business for more than a century.

To learn more about our bonding department, reach out to our specialists Kamini Patel and Kelly F. Smuzinsky.