What is a court bond?
Court bonds, also called judicial bonds, are court-ordered surety bonds for specific legal matters. The primary purpose of these bonds is typically to protect one party against losses they could suffer due to another party’s failure to perform their duties.
If the court requires you to get a bond, you’ll be held responsible for fulfilling your legal responsibilities. If you fail, the court can file a claim against the bond, and you may end up having to pay out the total bond amount.
principal
Required to get a bond and follow its terms
obligee
Requires the principal to be bonded (usually the court or a judge)
surety
Provides the bond and backs it financially in case of claims
In This Guide…
- What is a court bond?
- Who needs a court bond?
- Types of Court Bonds (Probate Bonds & Judicial Bonds)
- What do court bonds cost?
- Court & Probate Bond Requirements
- Frequently Asked Questions
Who needs a court bond?
There are different court bonds for different types of proceedings. Two of the most common situations where you may need a court bond are 1) if you’re working toward becoming a legal guardian or 2) you’re the executor of an estate. Involvement in criminal defense matters and litigation may also require bonds.
LITIGATION
Protecting property or other assets
During litigation, property is often in dispute between the parties involved in business litigation, a divorce, or a proceeding involving a government or municipal entity. Many court bonds may help protect the value and integrity of the property at issue while the litigation is in progress (which may take months or even years).
PROBATE MATTERS
Managing an estate
A probate bond helps protect a deceased person’s estate from negligence or fraud on behalf of the executor (the person responsible for distributing and managing the assets). Most probate cases require an estate executor or administrator to obtain a probate bond unless:
- A valid will explicitly waives the bond requirement, or
- All heirs sign a waiver of bond.
GUARDIANSHIP MATTERS
Protecting a minor or disabled person
If you’re working on becoming the legal guardian of a minor or disabled person, you’ll need a surety bond. Various types of bonds may protect property or assets in dispute during court proceedings.
Types of Court Bonds (Probate Bonds & Judicial Bonds)
Probate (Fiduciary) Bonds
A probate (or fiduciary) bond is a court-ordered bond for an individual or entity-appointed representative of an estate. Examples of this appointed role include estate executors and administrators.
A probate bond ensures that an estate’s personal representative is honest and trustworthy while carrying out their duties during the probate process. The bond protects the estate and its beneficiaries from illegal activities like fraud and embezzlement. If the bondholder takes advantage of their role, beneficiaries of an estate may file a claim for any damages they suffer.
Types of Probate Bonds
1) MANAGING THE ESTATE OF A DECEASED PERSON
Various types of estate bonds ensure the executor fulfills their duties according to state or local laws.
Executor Bond
County courts often require these bonds for individuals handling the administration of a deceased person’s property, belongings, and debt (their “estate”).
Administrator Bond
If the deceased didn’t execute a will or the appointed executor can’t or won’t perform their duty, the probate court will appoint an estate administrator.
Receiver Bond
A receiver is a neutral party the court appoints to manage another party’s property and other assets (legal interests) in a court proceeding. A receiver bond ensures the receiver fulfills their duties in good faith.
Foreign Executor Bond
A foreign executor bond ensures that any court-appointed executor residing outside the court’s jurisdiction follows all applicable laws and regulations while managing an estate.
Personal Representative Bond
This bond guarantees the personal representative/PR carries out specific duties according to a decedent’s will. If a decedent dies without a will (intestate), the PR will act as an executor.
Trustee Bond
A trustee bond is a type of court bond that protects a trust’s beneficiaries if a trustee fails to administer the trust properly.
Bankruptcy Trustee Bond
This bond guarantees that the person appointed as trustee in a bankruptcy matter will perform their duties faithfully, honestly, and in accordance with the law.
Nominal Bond of Personal Representative
A nominal bond of personal representative is a type of surety bond required by the Maryland courts to protect an estate’s beneficiaries and creditors.
2) CARING FOR THE LEGALLY INCOMPETENT
If you’re working on becoming the legal guardian of someone – a minor or disabled person – you’ll need a surety bond.
Guardianship Bond
You may need a guardianship bond if you want to apply for legal guardianship of a minor or an elderly or disabled person (an individual deemed legally incompetent).
Conservator Bond
A conservator is someone appointed by the court to supervise someone else’s (the conservatee’s) financial needs, such as a child, an elderly adult, or an adult with a disability. Conservator bonds ensure that court-appointed representatives fulfill their obligations. If the deceased didn’t execute a will or the appointed executor can’t or won’t perform their duty, the probate court will appoint an estate administrator.
Custodian Bond
A custodian bond ensures that you follow all rules and regulations that apply to your role as the custodian or guardian of a disabled person, elderly adult, or minor.
Child Custody Bond
A child custody bond offers protection for children in cases where the parents are undergoing divorce proceedings. A trustee bond is a type of court bond that protects a trust’s beneficiaries if a trustee fails to administer the trust properly.
VA Fiduciary Bond
A VA fiduciary bond is often required of an individual tasked with managing someone’s Veterans Affairs benefits.
Judicial Bonds
A judicial bond is a type of court bond that ensures defendants and plaintiffs can pay for the costs of a lawsuit or other legal action. Judicial bonds are related to civil court proceedings and are required by a judge. The United States Admiralty Courts also require them.
The court may require you to obtain a judicial bond before entering a civil proceeding if you seek a special right or remedy before a final court decision is made. By signing the bond agreement, you promise to pay the party on the opposing side of legal action if you fail to carry out your duties properly.
In short, a judicial bond protects one party against losses unjustly caused by an opposing party. Remember: Court bonds are court-ordered bonds. Judicial bonds are judge-ordered bonds.
Types of Judicial Bonds
1) PLAINTIFF BONDS
A plaintiff must obtain a plaintiff bond to protect the defendant if the plaintiff loses the lawsuit. If the defendant loses money because of how the court proceeding plays out, the plaintiff will be held financially liable for covering the damages.
Attachment Bond
Required when a debtor owes a creditor money and the creditor requests to seize (“attach”) the debtor’s property to compensate for the loss.
Sequestration Bond
This bond is similar to attachment bonds but also allows a sheriff or marshal to seize and hold the defendant’s property on behalf of the plaintiff.
Lis Pendens Bond
The court may require a plaintiff to obtain this bond before filing a lis pendens against real or personal property.
Garnishment Bond
The courts typically require creditors to garnishment bonds before being granted garnishments. A garnishment bond protects the borrower (the defendant) if their creditor (the plaintiff) loses the lawsuit.
Replevin Bond
Before a court hearing, a plaintiff can take possession of the contested property after obtaining a replevin bond.
Cost Bond
A cost bond ensures a plaintiff pays all required court expenses.
Injunction Bond
Plaintiffs must obtain these bonds before the court will grant them an injunction.
Indemnity to Sheriff Bond
These bonds protect law enforcement agencies as they carry out court orders to seize someone’s property.
Temporary Restraining Order Bond
Judges often require plaintiffs to obtain TRO bonds before issuing temporary restraining orders.
2) DEFENDANT BONDS
A defendant can also purchase a bond to counteract the effects of a plaintiff’s bond.
Appeal (Supersedeas) Bond
This bond allows a defendant to delay paying a judgment entered in a lower court while their appeal is pending.
Release Attachment Bond
A release attachment bond allows a defendant to regain possession of their property or money, canceling the plaintiff’s attempt to attach it to the lawsuit.
Release of Lien Bond
The courts may require a lien release bond before removing a mechanics lien from a project.
Other Court Bonds
ZipBonds provides thousands of bond options, including court and probate bonds.
What do court bonds cost?
Individuals who need a bond pay a percentage of the overall worth of the bond. The issuer of the bond (the surety) puts up its total value as a guarantee to the court.
Judicial Bond Cost
Judicial bonds, including many court and appeal bonds, generally cost 1-7% of the bond amount. The percentage may depend on the nature of the action, the property involved, and the principal’s creditworthiness. Judicial bonds often also require the attachment of “collateral” – property of value – to secure the bond amount.
Probate Bond Cost
Probate bond costs vary based on the coverage required. Typically, the courts will set your bond limit based on the total estate value you will be responsible for. And then you, as the personal representative, will pay a portion of that value – typically around 0.5%. The probate bond protects the entire value of the estate.
Although representatives must purchase the bond out-of-pocket before the court appoints them, they may use estate funds to reimburse themselves for the cost once the estate is opened.
Court and Probate Bond Requirements
You must provide valid identification and contact information to obtain your bond. Your bond provider may also ask for financial documentation, court documents related to your case, and other information.
You must pay a premium (a small percentage of the total bond amount) to obtain your bond. Depending on the amount secured, you may also be required to undergo a credit check. Judicial bonds typically require the attachment of “collateral” (property of value) as well.
What You’ll Need:
- Valid ID
- Contact information
- Financial documentation
- Court documents related to your case
- Payment
- Credit check
- Attachment of collateral (if applicable)
Frequently Asked Questions
The most common probate bonds are administrator, executor, conservator, guardian, and trustee bonds.
Most individuals can obtain court or probate bonds even with low credit scores. You may have to pay higher fees or put down a higher percentage of the bond amount.
If you no longer need your court bond, we will require a letter from the court showing that the bond has been released.
Return of the principal for court bonds varies depending on the nature of the litigation and the type of fiduciary bond. For probate bonds, the amount paid may be returned to the personal representative upon final settlement and closure of the estate (or to the estate itself if the representative was reimbursed for its cost).
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Contact ZipBonds for Court Bonds
ZipBonds makes getting a bond faster and easier than anyone else. Simply apply online, and our professional underwriters will get to work! Find the best court bond options from the top surety companies in the nation. If you have any questions, our agents are happy to help! Call (888) 435-4191 or email support@zipbonds.com. We also have Live Chat on our website during regular business hours.