A fiduciary bond, also commonly referred to as a probate bond or estate bond, is a type of legal tool that protects beneficiaries, heirs, and creditors if a fiduciary doesn’t act with integrity or fails to carry out their duties.
Probate Courts often require any person fulfilling a fiduciary role on behalf of another person or party to post a fiduciary bond. If a fiduciary fails to fulfill their duties, they become financially liable for any claims filed against the bond.
The cost of a probate bond depends on the size of the estate and the amount of coverage that’s required. In most cases, the Probate Court will require that the fiduciary bond covers any non-real property assets that will be under the control of the fiduciary. The average fiduciary bond premium is a few percentage points of the covered amount.