California Probate Bond

When a probate bond is required, the estate executor must purchase one from a qualified surety bond company. The bond guarantees the executor will fulfill their duties under the law and the terms of the will. It protects the estate and its beneficiaries from illegal activities (e.g., fraud or embezzlement). If the executor fails to fulfill their duties, the bond can be used to compensate beneficiaries for any losses they suffer.

If the will doesn’t name an executor or there is no will, the court will appoint an administrator to complete the probate process. This person acts as the estate’s personal representative and must also be bonded to ensure they adequately manage all estate assets and property.

The court will set your probate bond amount. In California, the amount will be no more than the sum of the following (as outlined in the California Probate Code):

• The estimated value of the personal property
• Probable annual gross income of the estate
• The estimated value of the decedent’s interest in real property

To calculate the bond amount required, you will need to determine the estate’s total value. For example, if the estate is valued at $500,000, the bond amount would also be $500,000. It’s important to note that the court has the final say in determining the bond amount. It may require a higher or lower amount based on the circumstances of the case.

The cost of your probate bond will depend on the value of the estate you manage and your creditworthiness. Keep in mind that if the estate includes real estate, your bond amount could be significantly higher than if it doesn’t.

The bond cost (premium) will be a small percentage of the total bond amount. Typically, the higher your credit score, the lower your premium rate. For example, if the court requires a $500,000 bond and you have excellent credit, the cost of your bond may be as low as $3,250 if your premium rate is 0.65%.

To obtain a probate bond in California, find a reputable surety bond company authorized to issue bonds in the state (like ZipBonds). Complete a probate bond application, providing relevant information about the estate, the executor, and other required details. You will also need to provide financial information and undergo a credit check. Once approved for the bond, you’ll pay a premium and can file the bond with the court.