Estate Planning Terms: Executive Bond Waivers

When a person passes away leaving property, somebody has to take on the responsibility to manage that property and after that move it to brand-new owners. This individual, referred to as an administrator or an executor, has a special duty to secure the estate property and to see the decedent’s wishes are followed.

To protect versus any possible errors or misbehavior on the part of the executor, states typically need the executor to publish a bond– a specific amount of cash– so any damage caused can be paid back. In many states the bond can be waived but only under specific situations. Speak to a lawyer in your area for state-specific advice about bond waivers.
Testamentary Waiver: An individual who creates a Will, called a testator, gets to pick who functions as his or her administrator. Testators can likewise pick to let the executor serve without having to publish a bond. This bond waiver is not needed to produce a Will, however without it the administrator will normally need to publish a bond.

Voluntary Waiver: Executors may also have the ability to waive the bond requirements if they get a waiver contract from the heirs or beneficiaries of the estate. If all the beneficiaries agree to 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 to an attorney.