In a Sale
What This Means When the House Is Being Sold
Selling the house changes the picture. Real property sitting in an estate is difficult to walk away with. Cash is not, and courts know it, so a sale can increase the bond a representative is required to carry. Where that happens the increase has to be arranged before the proceeds land, and the premium comes out of the estate.
Credit matters too. Surety companies underwrite the individual, and a representative with damaged credit can find the bond expensive or hard to obtain at all. That is worth knowing before a family agrees on who will serve, rather than after a petition has been filed.
Sequence
What Usually Happens
- 1The court sets a bond amount in the order appointing the representative
- 2A surety company underwrites the individual and issues the bond
- 3The premium is paid, usually from estate funds
- 4The bond is filed with the court before Letters are issued
Compare
Not to Be Confused With
What Tells Them Apart
A bond pays the estate if the representative mishandles it. A waiver of bond removes that requirement, usually because the will excuses it or the beneficiaries agree in writing. A blocked account takes a different approach, restricting the money rather than insuring against its loss. All three answer the same question, which is how the court is satisfied the assets are safe.
Questions
Questions People Ask
Who pays for the bond in probate?
The premium is generally paid from estate funds rather than by the representative personally, and it is reported in the accounting like any other administration expense. The amount depends on the size of the estate and on the surety company's underwriting.
Does selling the house change the bond amount?
It can. Converting a house into cash increases what a representative could mishandle, and courts sometimes require the bond to be increased before proceeds are received. The estate's attorney will usually raise this ahead of closing, and it is worth asking about early rather than during escrow.