Ask a Lawyer : Chapter 27 - Executors

Trusting the Executor

Q. Do executors have to be bonded? Is this expensive? Can it be avoided?

A. Bonding requirements vary from state to state, but all states require some type of bond unless your will directs the probate court to waive it. The purpose of the bond is to protect the estate and the heirs if your executor decides to run off with assets of the estate. If this should happen, the bonding company would reimburse the estate and then pursue the executor for contribution. A bond, however, can be expensive, running into the thousands of dollars for a large estate.

If you trust your executor, or if your executor is a beneficiary of a significant portion of the estate (and has no interest in stealing from it), you should consider stating in your will that you are waiving the bond requirement. Even if you neglect to waive the bond in your will, your heirs can still join together and request the court to waive the bond if they are trusting of your executor. The court may still require a bond, but it will be an inexpensive “nominal bond” that only guarantees that the state will receive its probate fees and inheritance taxes.