Nevada Probate Surety Bond
A Nevada probate bond is required to ensure that the executor of a decedent’s estate will perform his or her duties in compliance with all Nevada and relevant federal law.
Estates which are very small in size may not be required to have a surety bond posted; however, amounts beyond a certain threshold in Nevada ($20,000) by law, will require that a surety bond be posted with the probate court.
There may be exceptional cases where all heirs to an estate agree to waive the surety bond requirement.
Ultimately, however, it will be the presiding judge who will make the determination on whether or not the probate bond requirement can be waived.
If the estate is substantial, assume that a probate bond will be required.
A court, at its discretion, may require a larger surety bond.
Sometimes it is the family members of an estate who request of the court that an trustee obtain the surety bond.
They may be concerned that the trustee will squander any monies or properties held in probate and they want to ensure that that does not happen; and, moreover, that they will be fully compensated were that to occur.
Generally, the amount of bond that will be required will be equal to the amount of the estate in probate.
The bond serves as a guarantee to any heirs in an estate that once probate is complete, all heirs will receive their proper inheritance.
What is written below applies only to Nevada probate surety bonds greater than $100,000. Amounts up to $100,000 are issued instantly and without a credit check. Please see our caption above. The amount of the premium will, of course, depend on the price of the bond; however, all applicants will be approved (provided that they complete an application and provide a copy of the court order mandating the surety bond). Of note is that all probate surety bonds will renew annually (regardless of the amount) on the anniversary in which they were issued.
While the amount of a probate bond may be quite substantial, the premium for the probate bond will only be a fraction of the total face amount of the bond. That having been stated, the factors which will help determine the probate bond premium (which is renewed on an annual basis for as long as the estate is in probate), include the following:
An application for a probate bond will require a disclosure of the financials of the applicant (i.e. net worth, assets, liabilities, income).
There will also be a credit report required.
These two criteria, in addition to the bond amount which has been pre-determined by the probate court, will factor in to the amount of the probate bond.
Unlike an insurance policy which has two sides ---the buyer of the insurance policy and the insurance company --- a probate surety bond has three parties. The principal is the party required to purchase the probate bond by the court or the heirs of the estate.
The obligee is the entity which is requiring the probate bond and on whose behalf the bond is being issued. The probate bond protects the interests of any and all obligees.
The surety company is the entity who issues the probate bond and who will guarantee payment of the face amount of the surety bond should a legitimate claim be filed.
Unlike an insurance policy, however, any claims which are paid by a surety company will need to be fully reimbursed by the principal. This would include any court costs, attorney fees, and all related costs.
And unlike an insurance, the bond does not protect the buyer of the policy (the principal). The bond protects the interests of the person for whom the principal buys the bond: the obligee.
AmeriPro Surety Bonds is your agent for the surety company.
AmeriPro Surety Bonds offers probate surety bonds in Nevada and all 50 states. Our agency also offers license and permit surety bonds.
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