A probate bond, also known as an executor bond or fiduciary bond, is a type of insurance that is often required when someone is appointed to manage the affairs of a deceased person’s estate. This person, known as the executor or administrator, is responsible for ensuring that the deceased person’s assets are distributed according to their will or state law, paying debts owed by the estate, and handling other financial matters.

The probate bond serves as a form of protection for the estate’s and creditors’ beneficiaries. It provides financial compensation if the executor or administrator mismanages the estate’s assets or engages in fraudulent activities. If the executor fails to fulfill their duties properly, beneficiaries or creditors can claim the bond to recover any losses incurred.
Probate bonds are typically required by the court overseeing the probate process to ensure that the executor or administrator acts in the estate’s and its beneficiaries’ best interest. The bond amount is usually determined based on the estate’s total value and can vary depending on state laws and the case’s specific circumstances.
In summary, a probate bond is necessary to protect the interests of the deceased person’s estate and its beneficiaries by providing financial security if the executor or administrator fails to carry out their duties appropriately.