Estate Planning Terms: Executive Bond Waivers
Once a person dies leaving property, someone has to take on the duty to handle that property and after that move it to new owners. This person, understood as an administrator or an executor, has an unique task to secure the estate property and to see the decedent’s dreams are followed.
To secure against any possible mistakes or wrongdoing on the part of the executor, states often need the administrator to publish a bond– a particular amount of loan– so any damage caused can be repaid. In lots of states the bond can be waived but only under specific circumstances. Speak with an attorney in your area for state-specific guidance about bond waivers.
Testamentary Waiver: An individual who produces a Will, called a testator, gets to choose who serves as his/her administrator. Testators can likewise choose to let the executor serve without needing to publish a bond. This bond waiver is not required to create a Will, but without it the executor will normally have to post a bond.
Voluntary Waiver: Administrators might likewise be able to waive the bond requirements if they receive a waiver contract from the heirs or recipients of the estate. If all the beneficiaries accept the waiver in composing, the executor can submit their arrangement to the court of probate and ask the court to waive the bond requirements. This might not be possible in all states, so speak with a lawyer.