Estate Planning Terms: Executive Bond Waivers

Once an individual dies leaving behind property, someone needs to handle the responsibility to manage that property and then move it to brand-new owners. This individual, called an administrator or an executor, has an unique responsibility to safeguard the estate property and to see the decedent’s desires are followed.

To secure versus any possible errors or wrongdoing on the part of the administrator, states often require the executor to publish a bond– a specific quantity of money– so any damage caused can be repaid. In lots of states the bond can be waived however just under specific scenarios. Talk to an attorney in your area for state-specific suggestions about bond waivers.
Testamentary Waiver: An individual who creates a Will, called a testator, gets to pick who functions as his or her executor. Testators can likewise select to let the administrator serve without needing to publish a bond. This bond waiver is not needed to produce a Will, but without it the administrator will typically have to post a bond.

Voluntary Waiver: Administrators may also have the ability to waive the bond requirements if they receive a waiver contract from the beneficiaries or recipients of the estate. If all the beneficiaries consent to the waiver in writing, the administrator can submit their agreement 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.