Estate bonds are required by the court in order to guarantee the honest accounting and faithful performance of duties by a fiduciary or executor and to administer the estates of deceased persons, incompetent persons, and minors for whom they are duty-bound to act on behalf of.
The Primary Types of Estate Bonds are:
- Foreign Executor Bond
- Administration/Trustee Bond
- Probate Bond / Waiver of Probate Bond
- Guardianship Bonds
When do I need an Estate Bond?
An estate bond is normally required when a minor is involved, when the executor lies outside the jurisdiction of the estate or when probate is difficult to obtain and needs to be waived.
Foreign Executor and Administration Bonds
Foreign executors and administrators are often required to post bonds to the courts, to guarantee their faithful performance of duties in accordance with the relevant laws. These individuals are commonly referred to as Fiduciaries. A fiduciary is an individual who occupies a position of trust, particularly one who manages the affairs or funds of another. These bonds guarantee that the fiduciary is honest, financially stable, and capable of completing the duties as outlined.
Foreign Executor Bond
A foreign executor bond is required when an appointed executor resides outside of the jurisdiction of the court overseeing the estate. When a non-resident or foreign executor of a Canadian estate is named, in most cases the court will require a foreign executor bond issued by an insurance company before granting a ‘Certificate of Appointment of Estate Trustee’ commonly referred to as probate.
Administration Bond
An administration bond is posted on behalf of an administrator of an estate to assure that he or she conducts their duties according to the provisions of the will and/or the legal requirements of the jurisdiction. The bond covers any financial losses to the estate due to dishonest or improper acts by the administrator.
An administrator is appointed to handle the estates of individuals who:
- Die without a will.
- Do not name an executor of the will.
- The named executor does not agree to the appointment.
- The named executor has passed away or is incompetent
- The named executor has been removed by the court.
How much do Estate Bonds Cost?
The costs of obtaining estate bonds are the responsibility of the estate and these bond costs can come from the assets of the estate and the cost ranges depending on the risk. Bond companies will generally require 2 years pre-payment as these bonds are often in place for multiple years however if the term is shorter, they will issue a premium refund once the bond has been returned to them.
How to Apply for an Estate Bond?
In order to apply for an Estate Administrator Bond or Foreign Executor Bond, the following documents are required:
- Inventory of the Estateof the Deceased Person
- Personal Net Worth Statementof the Deceased Person
- Death Certificate
- Last Will (if available)
- Application of Appointment for Approval to the Court
In order to apply for a Committee of Guardianship Bond, the following documents are required:
- Inventory of the Estateof the Deceased Person
- Personal Net Worth Statementof the Deceased Person
- Management Plan
- Application for Appointment for Approval to the Court
Apply Now Online
- Estate Administrators
- Foreign Executor Bonds
- Guardianship of Minor
- Committee or Guardianship
Alternatively, you may email the documents to[email protected].
Once the paperwork is in place, the turnaround time is generally 2-4 hours for these bonds.
With any questions, please call us at 1-888-241-5656
