Texas Probate Bond | AmeriPro Surety Bonds | 844-589-9732
Update: For any probate or guardian surety bond in Texas, up to and including $100,000, our agency offers you the required surety bond instantly and without a credit check. What this means for you is that after payment of the premium, the bond is issued to you immediately. For amounts greater than $100,000, a credit inquiry and what follows below is still applicable.
Texas Probate Bond: Governing and Purpose
Texas probate bonds are governed under Chapter 7, Part 2 Section 194 under Oaths and Bonds of personal representatives.
When required by a judge, the probate bond is a financial guarantee that an estate’s representative will act in accordance of the law and not mismanage, defraud, or commit any criminal activities in their fiduciary capacity as an estate’s representative.
Probate bonds are also required to ensure that upon an estate’s settlement, the heirs will receive what is rightfully theirs without having to worry about money squandered or misappropriated.
The Amount for a Texas Probate Bond
As you might have guessed, the amount of a Texas probate bond will be contingent on the value of an estate.
A judge will ultimately decide the amount of probate bond required.
Factors which may determine the amount of bond needed include:
- The amount of debt an estate has;
- What the estate is projected to earn in the next 12 months. This amount may include investments, businesses owned by the estate, dividends on stocks, interest payments on investment bonds, and related items;
- The amount of cash on hand in the estate;
- The value of any art held by the estate;
- Other concerns as may be deemed appropriate.
Depending on the value of an estate, the amount can be either relatively small or large.
The Premium of a Texas Probate Bond
While the amount of the probate bond required is one thing, the premium is a small percentage of that amount.
Applicants for a Texas probate bond should be fully aware that the premium on a Texas probate bond renews annually for as long as the estate is in probate.
The premium of the probate bond required will be determined by:
- The applicant’s financial standing. A financial disclosure may be required;
- Other assets held by the estate’s representative, which may include any real property;
- The applicant’s credit report. (This may be singularly the most important item). Persons who do not qualify credit-wise may not be permitted to be an estate’s representative.
For instance, an administrator of an estate for a Texas probate bond may pay under $4,000 annually, for an estate valued at $1mm. This is with good credit.
Applicants who have poorer credit scores should be financially prepared to pay substantially more.
Of note is that a probate bond can be prepaid for a period of up to 3 years thereby offering a savings on the overall premium due as opposed to paying annually.
Using the same example above, a probate bond on an estate of $1mm prepaid 3 years may have a payment of just over $10,000.00.
The Probate Bond: It’s all About the Creditors and Heirs
Applicants for a probate bond should understand that the bond is really about protecting the interest of others, namely any heirs and creditors to an estate.
The bond, therefore, does not protect the administrator or representative of the estate at all; it is not an insurance policy.
The bond, again, is required to ensure that the representative acts in an honest capacity as an estate’s representative.
AmeriPro Surety Bonds
AmeriPro Surety Bonds will work with you to obtain the best pricing for your Texas probate bond.
As a surety bond-only agency, AmeriPro Surety Bonds provides license and permit, court, and fiduciary bonds throughout all of Texas.
We also provide surety bonds in all states.