A Fiduciary's Guide to Filing Inventories and Accountings in Probate Court A step-by-step guide to help fiduciaries properly file inventories and accountings in probate court. <!-- wp:paragraph --> <p>When serving as a fiduciary for a decedent’s estate or guardianship, one of your primary responsibilities is to ensure the proper filing of inventories and accountings in probate court. These documents play a crucial role in providing transparency and accountability to all interested parties, and failing to meet these deadlines could result in removal or even a bond claim. Below is a step-by-step guide to help fiduciaries navigate this process effectively.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>Step 1: Understand the Purpose of Inventories and Accountings</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p><strong>Inventory</strong>: This document is prepared after the court appoints you as the personal representative or guardian. The assets to include can vary depending on the type of case, but it must provide an overview of the decedent’s or ward’s property.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Examples of assets typically listed include:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>Retirement accounts.</li><li>Bank accounts.</li><li>Insurance policies.</li><li>Vehicles</li><li>A home (unless held in joint tenancy with a surviving spouse, which would make it a non-probate asset).</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>Non-probate assets, such as jointly held property or assets with designated beneficiaries, are generally excluded from the inventory.<br></p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><strong>Accounting</strong>: Filed when you are ready to close the estate, or annually for guardianships and estates open over a year. This document details how the decedent’s or ward’s assets were managed, spent, or distributed. It ensures the court and interested persons that the estate or guardianship has been properly administered.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>Step 2: Compile the Inventory</strong></h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>Discover All Assets and Debts</strong>: Start by identifying all the decedent’s or ward’s property, financial accounts, and obligations.<ul><li>Tip: Gather documents such as bank statements, titles, deeds, and insurance policies. Letters of authority granted by the probate court will allow you to obtain these documents from financial institutions if previously unavailable.<br></li></ul></li><li><strong>Create the Inventory</strong>: Include the value of each asset as of the date of death (for estates) or as of the date of appointment (for guardianships) and list all known debts.<ul><li>Example: If the decedent or ward owned a vehicle, include its make, model, and appraised value.<br></li></ul></li><li><strong>Share the Inventory</strong>: Provide a copy to all interested persons, including heirs, beneficiaries, or other parties as required.<br></li><li><strong>File the Inventory with the Court</strong>: Ensure the document is filed before the deadline. Many jurisdictions require the use of specific forms or templates, so check your local probate court’s requirements.</li></ol> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong><strong>Step 3: Prepare the Final or Annual Accounting</strong></strong></h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>Track Estate or Guardianship Transactions</strong>: Maintain meticulous records of all income, expenses, and distributions. Examples include:<ul><li>Payments for funeral expenses, debts, and taxes (for estates).</li><li>Payments for the ward’s care, housing, or other needs (for guardianships).<br></li></ul></li><li><strong>Prepare the Accounting</strong>: The accounting should detail:<ul><li>The opening balance of the estate or guardianship.</li><li>All income received.</li><li>Expenses paid.</li><li>Remaining balances distributed to beneficiaries (for estates) or retained for ongoing care (for guardianships).<br></li></ul></li><li><strong>Share the Accounting</strong>: Like the inventory, the accounting must be shared with all interested persons. Transparency allows beneficiaries or concerned parties to review how the estate or guardianship was handled.<br></li><li><strong>File the Accounting with the Court</strong>: This ensures the estate can be formally closed or that the guardianship remains compliant with court requirements.</li></ol> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong><strong><strong>Step 4: Know Your Deadlines</strong></strong></strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>As a fiduciary, you are responsible for meeting important deadlines. Guardianships may have different deadlines for filing initial inventories and periodic accountings. Deadlines can vary by jurisdiction, so it is critical to confirm the specific timeline applicable to your case with your county probate court. Fiduciaries should work with their attorney or the probate court overseeing their case to ensure all deadlines are met.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":747,"height":427,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/271813/NY/AcctInventory%20Infographic%20%283%29.png" alt="Jet Inventory Accounting Filing Guide" width="747" height="427"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong><strong><strong><strong>Step 5: Address Objections, if Any</strong></strong></strong></strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If any interested party disagrees with the inventory or accounting, they have the right to file an objection with the court. Be prepared to provide documentation to support your decisions as the fiduciary. <br><br>Consulting with a probate attorney can be invaluable during this process. If funds are mismanaged and the mistake can not be rectified by the fiduciary, the court may order a bond claim.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong><strong><strong><strong><strong>Step 6: Seek Legal Advice When Necessary</strong></strong></strong></strong></strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If any interested party disagrees with the inventory or accounting, they have the right to file an objection with the court. Be prepared to provide documentation to support your decisions as the fiduciary. <br><br>Consulting with a probate attorney can be invaluable during this process. If funds are mismanaged and the mistake can not be rectified by the fiduciary, the court may order a bond claim.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>How Would This Impact My Probate Bond?</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Serving as a fiduciary requires diligence, organization, and adherence to legal requirements. By understanding the purpose of inventories and accountings, meeting deadlines, and maintaining transparency with interested persons, you can successfully fulfill your duties without the potential of a bond claim. Remember, professional legal assistance is always encouraged to help navigate the complexities of estate administration and guardianship.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>How Do I Obtain a Probate Bond?</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

Closing an Estate in Probate Court: Impact on Probate Bonds Closing an estate is a crucial process in probate court that ensures all debts are paid, assets are distributed, and legal requirements are met. <!-- wp:paragraph --> <p>Closing an estate is a crucial process in probate court that ensures all debts are paid, assets are distributed, and legal requirements are met. Whether handled through formal or informal probate, the process requires careful attention to detail from the administrator or executor.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>One essential component of this process, particularly in formal probate, is the requirement of a probate surety bond. A probate surety bond, also known as a fiduciary bond, serves as a financial guarantee that the personal representative will fulfill their fiduciary duties. In this article, we will provide an overview of closing an estate and how to release a probate bond.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Understanding Probate and Estate Settlement</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate is the legal process of settling a deceased person’s estate. It ensures that debts and taxes are paid and that assets are distributed to the rightful heirs. The probate process can either be formal, requiring court supervision, or informal, which is a streamlined process with minimal court involvement. The type of process granted varies based on the nature of the estate proceeding and if any aspect of the probate case is contested.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Probate bonds must be renewed annually for as long as the estate is open and the administrator is appointed. Once the estate is closed, the fiduciary or their attorney must furnish proof to the surety that all obligations are met and the court is allowing the bond to be released. </p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Steps to Closing an Estate</h2> <!-- /wp:heading --> <!-- wp:heading {"level":4} --> <h4><em>Pay All Debts and Distribute Net Asserts</em></h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Once appointed, a personal representative is responsible for satisfying all outstanding debts, including medical bills, loans, and credit card balances, if the creditor claims are valid. Additionally, estate taxes and any remaining income taxes must be paid to avoid legal complications.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Once debts and taxes are paid, the personal representative distributes the remaining assets according to the will. If there is no will, state intestacy laws determine how the assets are allocated among heirs.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4><em>Submit the Final Accounting</em></h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>A final accounting for an estate is a detailed financial report prepared by the personal representative, outlining all transactions related to the estate’s administration. It includes an inventory of assets, payments made to creditors and taxes, and the final distribution of remaining assets to beneficiaries. This document is submitted to the probate court for approval, ensuring transparency and compliance with legal requirements before the estate is officially closed.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4><em>Closing the Estate</em></h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>After the court reviews and approves the final accounting, the personal representative files a petition to close the estate. The court then issues an order officially closing the estate, releasing the personal representative from further responsibilities. This aspect of estate administration varies greatly depending on the type of probate proceeding, whether formal or informal.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Formal and Informal Probate</h2> <!-- /wp:heading --> <!-- wp:heading {"level":4} --> <h4><em>Formal Probate</em></h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Formal probate is necessary for complex estates, disputes over the will, or when significant debts exist. This process involves a high level of court supervision and may require multiple hearings. This type of proceeding will involve a formal order from the probate court discharging the fiduciary from their role and allowing all liability to be released from that date onward. This order must be provided to the surety company to release the surety bond from all liability, as the bond cannot be canceled without a court order.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4><em>Informal Probate</em></h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Even in informal probate, the personal representative must complete all responsibilities as required by law, which often includes a final accounting detailing asset distribution, debt payments, and tax settlements. Some courts also require these records to be shared with beneficiaries and creditors to ensure transparency. Since a probate bond serves as a financial safeguard for the estate, it cannot be released without confirmation that all obligations have been met and the estate is formally closed.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Required to Get a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph {"style":{"typography":{"fontSize":12}}} --> <p style="font-size:12px"><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

Conservator or Guardian Bond Claims Guide Conservators and Guardians hold an important role in the ward's life. Read details on how to avoid claims in a conservatorship or guardianship here. <!-- wp:image {"align":"right","height":160,"sizeSlug":"large"} --> <div class="wp-block-image"><figure class="alignright size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/blog/button-conservator-guardian.png" alt="Guardian Bond or Conservator Bond" height="160"/></figure></div> <!-- /wp:image --> <!-- wp:paragraph --> <p>A ward (minor or incapacitated person) is often assigned a guardian or conservator (fiduciary) by the State of Florida to tend to their well-being or property. Because of the sensitive nature of this responsibility, a Guardian Bond or Conservator Bond is required to protect against financial damages from the guardian’s or conservator’s breach of duty.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>As the bond issuer, Jet Insurance Company provides a guarantee to the State that the ward (incapacitated person) will have an avenue for compensation for wrongful actions. But, Jet also serves the guardian by validating bond claims to protect the guardian against false allegations.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>How to Avoid Claims on a Guardian Bond or Conservator Bond</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Guardian and Conservator Bonds are both conditioned on the person’s ability to faithfully perform their obligations in the best interest of the ward. Each state uses the terms differently, but in general, a guardian is tasked with making health decisions, while the conservator is in charge of the ward’s estate.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Guardianship claims may arise from:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>Fraudulently obtaining guardianship</li><li>Making a health decision that the ward and family members wouldn’t agree with</li><li>Abusing, neglecting, or exploiting the ward</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>Conservatorship claims look like:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>Selling the ward’s household items without permission</li><li>Mismanaging assets</li></ul> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>Who Can File a Claim Against a Guardian/Conservator? Is There a Limit to the Amount of the Claim?</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Claims can come from any person who believes that the guardian or conservator is abusing or neglecting their powers and causing harm to the ward or the assets being overseen. Complaints can even come from the ward themselves if they feel the guardian is not protecting them or their property.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Any bond claim must be within the parameters of the Guardian Bond or Conservator Bond limit. These bonds have a limit that is determined by the courts and must be in an amount that equals the value of cash, assets, or property of the incapacitated person.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>When Can Claims Be Filed Against a Conservator/Guardian Bond Be Filed?</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Typically, the fiduciary is liable for his or her actions for the entire active period of the bond and can receive claims at any time while exercising guardianship or conservatorship. Keep in mind that the bond is active until the Court releases the guardian/conservator and Jet (as the surety company) from liability. Although there is no further incurring liability beyond the release date, some states may allow claims to be filed for offensive actions that occurred during the active period.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2><strong>Claims Process for a Guardian Bond or Conservator Bond</strong></h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Before a claim can be filed on the bond, there is a process for raising concerns and investigating the validity of those concerns. Read on to become familiar with the general process of complaints as they may progress into a bond claim.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"align":"center","height":200,"sizeSlug":"large"} --> <div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/blog/claim-process-one.png" alt="" height="200"/></figure></div> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>Let’s see how the bond claim process works using Princess Aurora (Sleeping Beauty), as an example—a Guardian Bond will be used.</em></p> <!-- /wp:paragraph --> <!-- wp:heading {"level":3} --> <h3><em>Complaint</em></h3> <!-- /wp:heading --> <!-- wp:paragraph --> <p>When there is suspicion that a guardian or conservator is acting in violation of their obligation to protect the integrity of the ward or the ward’s estate, a complaint will be filed with the court.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><em>When Aurora was a child, she was placed into the custody of the three fairies, Flora, Fauna, and Merriweather to act as her guardians while she was not yet of age. Although they seemed up to the challenge, the three fairies had trouble with the intricacies of raising a human child without the use of magic, like cooking a meal or clothing the child as she grows.&nbsp;</em></p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><em>Close to her 16th birthday, Aurora meets Prince Philip, and let’s say she tells him of her childhood. Once he figures out that Aurora was the princess and has been the ward of the fairies, Philip comes to the conclusion that the fairies were incompetent in raising the young princess. He raises a complaint with the kingdom’s council so that Aurora can be compensated for the fairies’ failure to provide a stable environment.&nbsp;</em></p> <!-- /wp:paragraph --> <!-- wp:heading {"level":3} --> <h3><em>Investigation</em></h3> <!-- /wp:heading --> <!-- wp:paragraph --> <p>The filing of a complaint would prompt the court into an investigation to determine whether the guardian is abusing their power or acting in a way that is not in the best interest of the ward.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><em>The council takes up Philip’s complaint and reviews </em><a href="https://media.giphy.com/media/wqzgOexg5mec0/giphy.gif" target="_blank" rel="noreferrer noopener"><em>the evidence</em></a><em> brought forth against the fairies. It is determined that the fairies did not provide an environment that is conducive to a human child.</em></p> <!-- /wp:paragraph --> <!-- wp:heading {"level":3} --> <h3><em>Judgment</em></h3> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If the court finds that the guardian/conservator has acted in a way that is harmful to the ward or the ward’s estate, the court will provide a course of corrective action for them to rectify the complaint.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><em>The council charges the fairies with providing compensation for damages that Aurora suffered.&nbsp;</em></p> <!-- /wp:paragraph --> <!-- wp:heading {"level":3} --> <h3><em>Recovery and Indemnification</em></h3> <!-- /wp:heading --> <!-- wp:paragraph --> <p>It is possible for the guardian or conservator to comply with the court’s judgment and make amends at this step before a bond claim is filed. But, if the guardian or conservator is unwilling or unable to comply with the judgment, the complainant will proceed with filing a bond claim.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Once a claim is filed on the bond, Jet will take a look into the evidence that is brought in support of the claim. Typically, once a court has investigated and found that an offensive action has occurred, there is little that can be countered for the guardian’s (or conservator’s) defense. Jet will be obligated to make restitution for damages via the bond. But, this payment is made on behalf of the guardian and the guardian/conservator must repay Jet in the amount that was paid out, as is the nature of surety bonds.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><em>The fairies aren’t able to make payment as directed by the council. So, Prince Philip files a claim on the fairies’ Guardian Bond. Since the bond is written with Jet, Jet checks the council’s judgment and sees that it was determined that the fairies failed to take proper care of the ward (Princess Aurora). Jet will pay the claim to ensure Aurora receives compensation. However, the fairies don’t get to fly away without repercussions; they must pay Jet back in the amount of claim payout per the bond agreement.&nbsp;</em></p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:table {"className":"is-style-stripes t-max-500"} --> <figure class="wp-block-table is-style-stripes t-max-500"><table><thead><tr><th>Bond Information</th><th>Legislative Documents</th></tr></thead><tbody><tr><td><a href="https://jetsurety.com/alabama/conservator-bond">Alabama</a></td><td><a href="http://alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/19865.htm" target="_blank" rel="noreferrer noopener">Code of Alabama, Title 26</a></td></tr><tr><td><a href="https://jetsurety.com/arizona/conservator-and-guardian-bond">Arizona</a></td><td><a href="https://www.azleg.gov/arsDetail/?title=14" target="_blank" rel="noreferrer noopener">Arizona Revised Statutes, Title 14</a></td></tr><tr><td><a href="https://jetsurety.com/florida/conservator-and-guardian-bond">Florida</a></td><td><a href="https://www.flsenate.gov/Laws/Statutes/2015/Chapter744/All" target="_blank" rel="noreferrer noopener">Florida Statutes, Chapter 744</a></td></tr><tr><td><a href="https://jetsurety.com/north-carolina/guardian-bond">North Carolina</a></td><td><a href="https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_35A.html#:~:text=%C2%A7%2035A%2D1201.,their%20property%20and%20personal%20affairs." target="_blank" rel="noreferrer noopener">North Carolina Statutes, Chapter 35A</a></td></tr><tr><td><a href="https://jetsurety.com/nevada/conservator-and-guardian-bond">Nevada</a></td><td><a href="https://www.leg.state.nv.us/nrs/" target="_blank" rel="noreferrer noopener">Nevada Statutes, Title 13</a></td></tr><tr><td><a href="https://jetsurety.com/ohio/conservator-and-guardian-bond">Ohio</a></td><td><a href="http://codes.ohio.gov/orc/21" target="_blank" rel="noreferrer noopener">Ohio Revised Code, Title 21</a></td></tr><tr><td><a href="https://jetsurety.com/oregon/conservator-and-guardian-bond">Oregon</a></td><td><a href="https://oregon.public.law/statutes/ors_chapter_125" target="_blank" rel="noreferrer noopener">Oregon Revised Statutes, Chapter 125</a></td></tr><tr><td><a href="https://jetsurety.com/texas/guardian-bond">Texas</a></td><td><a href="https://statutes.capitol.texas.gov/" target="_blank" rel="noreferrer noopener">Texas Estates Code, Title 3</a></td></tr></tbody></table></figure> <!-- /wp:table -->

Estate and Inheritance Taxes: Impact on Probate Bonds In this blog, we’ll explore which states impose estate and inheritance taxes and how they influence the probate process <!-- wp:paragraph --> <p>Navigating the probate process can be complicated, especially when estate and inheritance taxes are involved. These taxes can significantly impact estate administration, adding responsibilities for executors and costs for beneficiaries. In this blog, we’ll explore which states impose estate and inheritance taxes, how they influence the probate process, and the role of <a href="/probate-bonds">probate bonds</a> in ensuring that tax obligations are met.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Understanding Estate and Inheritance Taxes</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p><strong>Estate Taxes</strong> are levied on the total value of the deceased’s estate before assets are distributed to beneficiaries. The tax is paid out of the estate itself by the personal representative, reducing the amount ultimately passed on. Probate bonds help protect against financial losses if the fiduciary fails to pay any estate taxes required under state law.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><strong>Inheritance Taxes</strong>, on the other hand, are imposed on the individual beneficiaries based on the value of the assets they inherit. Unlike estate taxes, inheritance taxes are typically the responsibility of the heir rather than the estate, and tax rates may vary depending on the heir’s relationship to the deceased.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Which States Have Estate and Inheritance Taxes?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Currently, a limited number of states impose estate or inheritance taxes. Let’s break down where each tax applies.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>States with Estate Taxes</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>As of now, 12 states plus Washington, D.C., impose estate taxes:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>Connecticut</li><li>Hawaii</li><li>Illinois</li><li>Maine</li><li>Maryland (also has an inheritance tax)</li><li>Massachusetts</li><li>Minnesota</li><li>New York</li><li>Oregon</li><li>Rhode Island</li><li>Vermont</li><li>Washington</li><li>Washington, D.C.</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>The estate tax exemption threshold varies significantly by state, ranging from around $1 million to over $12 million, depending on the state’s regulations. Oregon has the lowest exemption threshold at $1 million while Connecticut has the highest threshold of $12.92 million.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>States with Inheritance Taxes</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Only six states currently have an inheritance tax:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>Iowa (phasing out completely by 2025)</li><li>Kentucky</li><li>Maryland (also has an estate tax)</li><li>Nebraska</li><li>New Jersey</li><li>Pennsylvania</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>In states with inheritance taxes, rates vary based on the heir’s relationship to the decedent. For example, spouses and children often receive full or partial exemptions, while more distant relatives or unrelated beneficiaries may pay higher tax rates.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":540,"height":540,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Articles/Estate%20TaxesInheritance%20Taxes%20Difference.png" alt="Estate Taxes and Inheritance Taxes" width="540" height="540"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Estate and Inheritance Taxes Affect Probate</h2> <!-- /wp:heading --> <!-- wp:heading {"level":4} --> <h4>Added Responsibility for the Fiduciary</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>When estate or inheritance taxes apply, the probate process becomes more complex, as executors and personal representatives must ensure these taxes are calculated and paid accurately. The executor must conduct a detailed valuation of all estate assets, including real property, stocks, and personal property. This valuation is necessary to determine the tax liability. For inheritance taxes, executors must identify who owes taxes and communicate these obligations to beneficiaries.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Delayed Asset Distribution</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Estate taxes are paid from the estate itself before distribution to heirs, which can delay the release of assets until the tax obligation is resolved. With inheritance taxes, distribution may also be delayed if beneficiaries need time to address their tax liabilities. Ensuring that the tax liabilities for the estate and beneficiaries can delay the probate process, increasing costs for the estate and ultimately the beneficiaries.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Impact on Beneficiaries’ Inheritances</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Inheritance taxes directly reduce the amount that beneficiaries receive, which can complicate estate planning and cause unexpected financial strain. Estate taxes, on the other hand, reduce the estate’s total value before it reaches beneficiaries, potentially leading to lower-than-expected inheritances, especially in states with lower exemption limits.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Estate Liquidity Requirements</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If an estate is cash-poor but asset-rich, the executor may need to sell property or other assets to generate the funds necessary to pay estate taxes. This can be a challenging and time-consuming process that may also reduce the overall inheritance value. Additionally, this could lead to the personal representative needing to increase their probate bond amount to cover the personal property value in the estate.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Role of Probate Bonds in Covering Taxes</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>A probate bond (or fiduciary bond) is a form of insurance required by the probate court to protect the estate and its beneficiaries from potential errors, mismanagement, or fraud by the executor. If the executor fails to pay required taxes, distribute assets correctly, or fulfill their fiduciary duties, the probate bond can cover any financial losses, including unpaid taxes. You can learn how a probate bond covers taxes below, and how to get approved for a probate bond in our recent blog <a href="/articles/detail/how-to-get-approved-for-a-probate-bond">here</a>.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Ensuring Compliance with Tax Laws</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Estate taxes are paid from the estate itself before distribution to heirs, which can delay the release of assets until the tax obligation is resolved. With inheritance taxes, distribution may also be delayed if beneficiaries need time to address their tax liabilities. Ensuring that the tax liabilities for the estate and beneficiaries can delay the probate process, increasing costs for the estate and ultimately the beneficiaries.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Protecting Against Mismanagement or Errors</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Inheritance taxes directly reduce the amount that beneficiaries receive, which can complicate estate planning and cause unexpected financial strain. Estate taxes, on the other hand, reduce the estate’s total value before it reaches beneficiaries, potentially leading to lower-than-expected inheritances, especially in states with lower exemption limits. This is a key reason why attorney involvement is crucial for complex estates in probate.</p> <!-- /wp:paragraph --> <!-- wp:heading {"level":4} --> <h4>Reimbursing the Estate for Tax-Related Losses</h4> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If an estate is cash-poor but asset-rich, the executor may need to sell property or other assets to generate the funds necessary to pay estate taxes. This can be a challenging and time-consuming process that may also reduce the overall inheritance value. Additionally, this could lead to the personal representative needing to increase their probate bond amount to cover the personal property value in the estate.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Do I Obtain a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

How Does Personal Credit Impact Probate Bonds? Learn how personal credit plays a role in applying for probate surety bonds and why it’s important to consider your own credit before opening an estate. <!-- wp:paragraph --> <p>When applying for a <a href="/probate-bonds">probate surety bond</a>, surety companies typically require a credit check from the estate administrator, as well as details about the estate and other pertinent information. In this article, we discuss the purpose of the credit check and why surety underwriters use this information to analyze applications.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Understanding Probate Bonds</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Before examining the significance of personal credit, it's important to understand what a probate bond is and its purpose. A <a href="/probate-bonds">probate bond</a>, also known as an estate bond or fiduciary bond, is a type of surety bond enforced by county courts throughout the United States. These bonds protect an estate's beneficiaries and creditors by guaranteeing the estate administrator will fulfill their duties ethically and according to the law.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>If the estate administrator causes financial damage, the damaged party can be reimbursed by filing a claim on the bond. The bond safeguards against potential fraud, negligence, or mismanagement caused by the fiduciary’s actions. Unlike traditional insurance, if the surety company pays a claim, the administrator is responsible for reimbursing the surety company, a concept known as indemnification.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>The Role of Personal Credit</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>When applying for a probate bond, the applicant's personal credit history and score play a pivotal role in the approval process. Surety companies use creditworthiness as one of the primary indicators to assess the risk associated with issuing a bond. A strong credit profile demonstrates financial responsibility and reliability, crucial characteristics for a successful fiduciary. The surety also uses credit to assess the applicant's ability to repay the surety company if a claim is paid.<br><br>According to <a rel="noreferrer noopener" href="https://trustandwill.com/learn/fiduciary-vs-executor-of-estate" target="_blank">Trust &amp; Will</a>, a fiduciary is “someone who acts on behalf of another individual” and manages another individual’s assets or property. From the surety’s perspective, applicants who can manage their own finances, as evidenced by a good credit score, are more likely to manage the assets of an estate successfully.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Factors Impacting Personal Credit</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Several factors contribute to an individual's personal credit standing, including payment history, credit utilization, length of credit history, and new credit accounts. A history of Several factors contribute to an individual's credit standing, including payment history, credit utilization, length of credit history, and new credit accounts. A history of timely payments and low credit utilization can improve one's creditworthiness. Conversely, late payments, high debt levels, and a short credit history negatively impact credit. Before petitioning to become an administrator in an estate, applicants should find out their <a rel="noreferrer noopener" href="https://www.experian.com/consumer-products/free-credit-report.html" target="_blank">current credit score</a> to ensure they will qualify for a probate bond.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":880,"height":503,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Impact%20of%20Credit%20on%20Probate%20Bond%20Applications%20F.png" alt="How Credit Affects Surety Bond Price" width="880" height="503"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Why Personal Credit Matters</h2> <!-- /wp:heading --> <!-- wp:list --> <ul><li><strong>Risk Assessment: </strong>Surety companies evaluate the likelihood of a bond claim by reviewing an applicant’s credit and financial history. A poor credit score indicates financial instability or past issues with meeting financial obligations, which raises concerns about the applicant's ability to fulfill their duties as a fiduciary.</li><li><strong>Premium Rates:</strong> Applicants with lower credit scores may still be eligible for probate bonds but will likely pay higher premium rates or require a co-signer before approval. Surety companies counteract the risk of poor credit by charging higher premiums, which can increase the cost of administering an estate and reduce the inheritance the heirs receive.</li><li><strong>Reputation and Trustworthiness: </strong>Beyond financial metrics, personal credit can also help surety companies determine an individual's integrity and reliability. A solid credit history indicates responsible financial behavior and instills confidence in the surety company that the administrator will manage estate funds appropriately.</li><li><strong>Claim Reimbursement</strong> Applicants sign an indemnity agreement when applying for a surety bond that requires the applicant to repay the surety company for any claims paid and other claims handling costs. The surety uses credit history to determine if the applicant can repay the surety company in the event of a claim.</li></ul> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Credit Impacts Probate Bond Underwriting</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Obtaining a <a href="https://jet.jepdevs.com/probate-bonds">surety bond</a> can often be a roadblock to becoming an estate administrator when beginning the probate process. Personal credit history and score are critical factors in the approval process, and applicants with poor credit history may suffer from lengthy delays or higher expenses when administering an estate. By maintaining a strong credit profile, estate administrators can demonstrate their financial responsibility and prove their credibility as fiduciaries, ultimately leading to an efficient and responsible estate settlement.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Applying for a Probate Bond with Poor Credit?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>At Jet, we take a holistic approach to probate underwriting and look at the entire estate, not just a credit score. We do not require credit checks on probate bonds up to $25,000 or up to $50,000 if you have an attorney. If the estate administrator cannot qualify because of credit, we offer multiple solutions. An applicant can obtain a co-signer with strong credit to bring up the overall strength of the application. Additionally, we can obtain the co-indemnity of all the heirs, reducing our risk as the surety and ultimately helping the administrator move forward in the case. For larger estates, we can set up a limited joint control agreement or advise the principal to open a blocked account with the court to reduce their bond amount. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>If you need help qualifying for a probate bond with poor credit, give us a call at&nbsp;<a href="tel: 8554700877">(855) 470-0877</a>&nbsp;to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">APPLY FOR A PROBATE BOND</a></div> <!-- /wp:button --></div> <!-- /wp:buttons -->

How to Get Approved for a Probate Bond Going through the probate process? Don’t fret. This article explains the key points you need to know to get approved for a probate bond. <!-- wp:paragraph --> <p>A probate bond, also known as a fiduciary or estate bond, is a legal safeguard that ensures the administrator of an estate upholds their fiduciary duties and manages the estate responsibly. Before a court grants authority to a fiduciary, many require the administrator or executor to obtain a probate bond, which protects any beneficiaries or creditors from financial losses due to mishandling of estate assets.<br><br>Getting approved for a probate bond requires meeting specific underwriting criteria, which can vary based on the size of the bond. Here are the key factors that sureties like Jet consider when reviewing an application for a probate bond.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Credit Score and Personal Financial History</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>One of the most important factors in getting approved for a probate bond is the applicant’s credit score and overall financial health. Sureties want to ensure that the administrator or executor is financially responsible and capable of managing large sums of money. A high credit score indicates that the applicant will be able to safeguard the funds properly, ensure that all debts are paid, and distribute net assets properly. Conversely, a low credit score could indicate that the applicant has a history of mismanaging funds, which can signal potential risk and raise red flags to the surety.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>For larger bonds, some sureties may request the applicant complete a personal financial statement, which breaks down the applicant’s assets and liabilities. This is often required so the surety can understand the applicant’s current financial picture and assess whether the applicant is capable of managing the estate’s finances without personal financial strain. For all bond sizes, sureties will also look to confirm that the applicant has no previous bankruptcies or active liens and judgments.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>At Jet, we take a holistic approach to probate underwriting and look at the entire estate, not just a credit score. We do not require credit checks on probate bonds up to $25,000 or up to $50,000 if you have an attorney. You can learn more about the impact of personal credit on a probate bond approval in one of our previous articles <a href="/articles/detail/probate-bonds-and-personal-credit">here</a>.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Attorney Involvement</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>The involvement of an attorney is a crucial part of the approval process. An attorney specializing in probate or estate law can help ensure that all legal requirements are followed correctly and that the fiduciary understands all responsibilities imposed by the court. An administrator or executor has numerous responsibilities during probate, which include paying off any estate debts, distributing assets to the heirs, and filing all required accounting with the court. Failure to fulfill these requirements could result in a bond claim, making it essential to have a strong understanding of the probate process or ongoing legal assistance.<br><br>When an experienced attorney is guiding the probate process, sureties are more likely to feel confident in the applicant’s ability to properly manage the estate, thus increasing the chances of getting approved for the bond. Jet Surety also provides discounted rates for applicants working with an attorney. In some cases, hiring an attorney is not always possible. Thankfully, we have partnered with services like <a href="https://trustandwill.com/">Trust</a><a href="https://trustandwill.com/" target="_blank" rel="noreferrer noopener"> </a><a href="https://trustandwill.com/">&amp; Will</a> and <a href="https://lets.meetalix.com/jet" target="_blank" rel="noreferrer noopener">MeetAlix</a>, companies that provide modern legal assistance to families navigating the probate process.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":1050,"height":600,"className":"size-large is-resized"} --> <figure class="wp-block-image is-resized size-large"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/Approval%20for%20Probate%20Bonds.png" alt="Probate assets Non-Probate Assets" width="1050" height="600"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Bond Amount</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>The bond amount, which is usually based on the total value of the estate’s assets, is another factor sureties consider during the underwriting process. The larger the estate, the higher the bond amount required, and the more stringent the underwriting process may be. The bond amount should not include any <a href="/articles/detail/probate-and-non-probate-assets">non-probate assets</a> as they should pass outside of the estate.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Applicants should ensure they are financially prepared for higher bond amounts, as sureties will want assurance that the administrator or executor can handle managing large estates responsibly. For larger bonds, many surety companies will mandate that an attorney be retained or that estate funds be placed in restricted accounts.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Estate Factors</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Several factors related to the estate itself can influence whether an applicant gets approved for a probate bond. These include, but are not limited to:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li><strong>Beneficiary Disputes: </strong>If there are disputes among the estate’s beneficiaries, sureties may view this as a risk since disagreements can complicate the administration process and lead to future bond claims if disagreements are not solved according to law. Sureties may hesitate to approve the bond if they feel these disputes will lead to potential mismanagement or legal battles.</li></ul> <!-- /wp:list --> <!-- wp:list --> <ul><li><strong>Ongoing Businesses: </strong>If there is an active business involved in the estate, this adds complexity to the management process, as the executor will need to handle not only personal assets but also ensure that no financial harm is brought to those involved in the business during the transfer of ownership. Sureties may require additional information and look for assurance on the plan for the business before approving a bond in these cases.</li></ul> <!-- /wp:list --> <!-- wp:list --> <ul><li><strong>Applicant’s Debt to the Estate:</strong> If the applicant owes money to the estate, this creates a conflict of interest and increases the risk that the estate might not be managed impartially. Sureties take this into account during the underwriting process and may deny bond approval if they see the potential for financial mismanagement.</li></ul> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Criminal History</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>If the applicant has committed any felonies or has a history of criminal activity, this can significantly hinder the chances of getting approved for a probate bond. Surety companies are hesitant to approve bonds for individuals with a criminal record, especially if the offense relates to financial mismanagement or fraud. Applicants with a clean criminal history are much more likely to be approved. In many states, anyone who has a felony conviction will be disqualified from becoming a fiduciary.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Get Approved with Jet Surety</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

Infographic | Administrator or Executor Probate Process The probate process is common across the US. This infographic details the process for administrators or executors working on the estate closure for a decedent. <!-- wp:html --> <p>The probate process is very common across the United States. This infographic details the general process for administrators and executors working on the closure of an estate for a decedent.</p> <p>iframe1</p> <p>More information can be found on Jet's <a href="../../../executor-bond">Administrator and Executor Bond</a> page.&nbsp;</p> <!-- /wp:html -->

New Michigan Laws to Modernize Probate Code New Michigan laws simplify the process of transferring assets like vehicles and watercraft outside of probate court <!-- wp:paragraph --> <p>In a move to ease financial burdens on grieving families, Michigan Governor Gretchen Whitmer has signed a series of bipartisan bills to simplify the process of transferring assets like vehicles and watercraft outside of probate court. This new legislation aligns asset transfer values with the current cost of living, reducing the need for probate court intervention and helping families save on costs. In this article, we take a closer look at these new laws and their impact on Michigan probate.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What is Probate?&nbsp;</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate is the legal process of administering an estate through the courts, paying off any debts, and distributing inheritances to the heirs. These court proceedings are required for anyone who passes away with <a href="https://jetsurety.com/articles/detail/probate-and-non-probate-assets" target="_blank" rel="noreferrer noopener">probate assets</a>, meaning any property that does not have a transfer of ownership in place when the owner passes. With larger types of property like homes or high-value assets, family members may need to file in probate court to manage their deceased relative’s property and distribute it to the family.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What are the New Laws?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>The legislation includes House Bills 4416, 4417, 4418, and 4419. Sponsored by Rep. Graham Filler and Kelly Breen, these bills raise the maximum asset values that can be transferred without oversight from the county probate court, reflecting today's economic reality. Representative Filler noted, “These updates modernize Michigan’s probate code, making it fairer and easier for residents to understand.”&nbsp; </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Under the <a href="https://gophouse.org/posts/rep-filler-successfully-modernizes-michigans-estate-probate-process">new</a><a rel="noreferrer noopener" href="https://gophouse.org/posts/rep-filler-successfully-modernizes-michigans-estate-probate-process" target="_blank"> </a><a href="https://gophouse.org/posts/rep-filler-successfully-modernizes-michigans-estate-probate-process">House Bills</a>, the surviving spouse or child of a deceased person can directly inherit tangible property up to a $50,000 value without a full probate court proceeding. Additionally, an adult relative of a minor or incapacitated person can inherit up to $25,000 on their behalf without needing a <a rel="noreferrer noopener" href="https://www.michbar.org/public_resources/probate_conservatorship" target="_blank">conservatorship</a> in place first. This allows families to handle their loved one’s property correctly while foregoing the significant expenses of opening an estate in probate court. Each probate situation is unique, so it’s important to consult with an attorney to understand if you will qualify under these new thresholds. The full text of these bills can be found on the Michigan Legislature's website <a rel="noreferrer noopener" href="https://www.legislature.mi.gov/Bills/Bill?ObjectName=2023-HB-4419" target="_blank">here</a>.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>"These bills make it easier for families to inherit vehicles or watercraft without additional expenses,” said Governor Whitmer. “This is part of our continued effort to lower costs for Michiganders with common-sense measures that save time and money.”&nbsp; Each bill earned unanimous support in the House and Senate before being signed into law.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Do I Still Need a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p><a rel="noreferrer noopener" href="http://jetsurety.com/probate-bonds" target="_blank">Probate bonds</a> provide a financial guarantee to all interested parties in the estate by ensuring that the administrator or executor will fulfill their fiduciary duty faithfully. When petitioning to open an estate in probate court, the administrator or executor may be required to obtain a probate bond before they have the authority to manage the estate. A probate bond can be required for many reasons, but as a good rule of thumb, you should expect to purchase a probate bond if the estate is worth a higher value (i.e. $50,000+). <br><br>Michigan probate judges will issue a court order if they determine one is necessary, and any person with an interest of over $30,000 in the estate can demand the court to require a bond for any personal representative over an estate. Call our probate experts at (855) 470-0877 for assistance.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Do I Obtain a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

New Virginia Law Regulates Probate Lending null <!-- wp:paragraph --> <p>The Virginia governor recently signed <a href="https://lis.virginia.gov/cgi-bin/legp604.exe?241+ful+CHAP0728" target="_blank" rel="noreferrer noopener">HB 648</a> into law, which increases regulations to probate lenders and designates cash inheritance advances as loans subject to capped interest rates. Introduced by Delegate Carrie Coyner, the bill aims to prevent <a href="https://www.wvtf.org/news/2024-05-22/predatory-probate-lending-bill-to-become-a-law-this-summer" target="_blank" rel="noreferrer noopener">predatory lending</a> and excess interest rates on inheritance advances by imposing licensing requirements for probate lenders. This bill will impact all <a href="https://jetsurety.com/virginia/personal-representative-bond">Virginia estates</a> opened after July 1st, 2024 and caps the interest rate to 12% on any cash advance for probate.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>An inheritance advance can be a useful tool for some families, as it gives instant access to funds that could be restricted during probate proceedings. However, with high interest rates and potential estate complications, these types of agreements may not be best for everyone. In this article, we examine the impacts of probate lending on the estate administration process and probate bonds.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What is a Probate Inheritance Advance?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate is the legal process of administering an estate through the courts, paying off any debts and distributing inheritances to the heirs. A probate case can be a timely process that can take 12-24 months to complete. If an heir to an estate needs their inheritance before probate is complete, they can agree to a probate inheritance advance as a way to get cash quickly.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Probate inheritance advances, also known as probate loans or inheritance funding, are cash advances on an inheritance provided by a third-party company. Estate beneficiaries agree to receive a portion of their inheritance early with a lump sum payment and the third-party lender is entitled to that beneficiary’s inheritance with interest once probate is complete. Many individuals choose to wait for the full inheritance, but probate advances can be useful for people who need large sums of cash quickly.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>For example, let’s say an heir is expecting to receive $50,000 in cash from his grandfather’s estate, and he receives a letter offering $40,000 in a lump sum payment from a probate inheritance advance company. He can choose to receive $40,000 now by forfeiting his $50,000 inheritance to the company upon the estate’s closure. There are benefits and drawbacks to using an inheritance advance like the example above, which we explain below.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":936,"height":576,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/271813/NY/Probate%20Lending%20Blog%20Infographic%20%281%29.png" alt="New Virginia Law Regulates Probate Lending" width="936" height="576"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Benefits of Probate Inheritance Advances</h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>Immediate Access to Funds</strong>: One of the primary advantages of a probate inheritance advance is immediate access to funds. Probate can be a lengthy process, often taking months or even years to settle. Heirs who need money for immediate expenses—such as paying off debts, covering medical bills, or managing day-to-day costs—can benefit greatly from receiving their inheritance early.<br></li><li><strong>No Monthly Payments:</strong> Unlike traditional loans, probate advances do not require monthly payments. Once the probate process concludes, the advance is repaid directly from the inheritance. This can provide financial relief without the added pressure of regular loan repayments.<br></li><li><strong>No Credit Check:</strong> Probate inheritance advances typically do not involve credit checks. The amount of the advance is based on the anticipated inheritance rather than the heir's creditworthiness. This can be particularly beneficial for individuals with poor credit or those who may not qualify for traditional loans.<br></li><li><strong>Fixed Repayment Amount: </strong>The amount to be repaid is agreed upon at the outset and does not accrue interest. This fixed repayment amount provides clarity and ensures that heirs know exactly how much will be deducted from their inheritance.</li></ol> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Disadvantages of Probate Inheritance Advances</h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>High Costs: </strong>One of the significant downsides of probate inheritance advances is their cost. The fee for receiving an advance can be a significant percentage of the inheritance. This cost can reduce the overall amount received by the heir once the estate is settled.<br></li><li><strong>Reduced Inheritance:</strong> Since the advance is repaid from the inheritance, the heir ultimately receives less than they would if they waited for the probate process to conclude. This reduction can be substantial, depending on the terms of the advance.<br></li><li><strong>Cash Advance Exceeding Inheritance:</strong> If the final estate settlement results in a smaller inheritance than anticipated, the heir may owe more than the advance they received. This situation can create financial complications and stress for the heir and can potentially lead to a <a href="/articles/detail/administrator-or-executor-bond-claims-guide">probate bond claim</a>.<br></li><li><strong>Impact on Estate Distribution:</strong> Taking out an advance can complicate the distribution of the estate. It can affect the executor's ability to manage the estate and ensure that all debts, taxes, and other obligations are paid. Additionally, other heirs may feel disadvantaged or upset by one heir receiving an advance, potentially leading to family conflicts.</li></ol> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Cash Advances Impact an Estate Proceeding</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate inheritance advances can play a major role in an estate proceeding. The immediate effect is that it creates a financial obligation that must be settled before any remaining inheritance is distributed. This can complicate the estate administration, as the personal representative must ensure that there are sufficient funds to cover the advance repayment along with other estate liabilities. However, probate inheritance advances can have a positive impact on the estate by giving heirs early access to funds in delayed probate proceedings.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Inheritance Advances and Probate Bonds</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>From a surety’s perspective, taking out an inheritance advance increases the risk of a probate bond by adding an additional interested party. <a href="/probate-bonds">Probate bonds</a> provide a financial guarantee to all interested parties in the estate by ensuring that the administrator or executor will fulfill their fiduciary duty faithfully. Probate advance companies take ownership of an heir’s portion of the estate and the fiduciary must ensure there are enough estate funds to cover the owed amount. If an administrator or executor fails to maintain enough estate funds to pay the probate advance company, they can file a <a href="/articles/detail/administrator-or-executor-bond-claims-guide">probate bond claim</a> to be reimbursed for any losses. If you have questions on how an inheritance advance can impact qualifying for a probate bond, please call our probate underwriters at (855) 470-0877 or email our team at <a href="mailto:probate@jetsurety.com">probate@jetsurety.com</a>.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/probate-bonds" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">LEARN MORE ABOUT PROBATE BONDS</a></div> <!-- /wp:button --></div> <!-- /wp:buttons -->

Probate v Non-Probate Assets Learn the differences between probate and non-probate assets and how asset ownership can impact your estate administration bond in probate court. <!-- wp:paragraph --> <p>When someone passes away, their estate must be managed and distributed according to the terms of their will or state law. This process often involves opening the estate in probate court by filing a petition with basic information about the decedent and the property they owned. When preparing this petition, it’s important to know the difference between the decedent’s probate assets and non-probate assets.<br><br>Understanding the distinction between these two categories is crucial for probating an estate efficiently and ensuring a smooth transition of ownership to the heirs. In this blog, we'll explore the differences between probate and non-probate assets and how asset ownership can impact your estate administration bond in probate court.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What are Probate Assets?&nbsp;</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate assets consist of any assets owned by a decedent that must go under the supervision of the probate court at the time of their passing. An asset is considered a probate asset if it was <em>solely</em> owned by the decedent with no beneficiary designations or any rights to survivorship. All probate assets must be distributed according to the terms of the decedent’s will, or according to state law if there is no will, and this property is subject to any estate taxes or creditor’s claims when passing through probate court. Additionally, all probate assets must be considered by the court and the fiduciary when calculating their <a href="/probate-bonds">probate bond</a> amount.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Common examples of probate assets can be found below:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li><strong>Real Estate: </strong>Any real property that’s titled to the decedent’s name alone or held as a tenancy in common</li><li><strong>Investments and Bank Accounts</strong>: Accounts that are solely in your name without any payable-on-death (POD) or transfer-on-death (TOD) designations.</li><li><strong>Personal Property:</strong> Jewelry, furniture, and vehicles that do not have a title or designated beneficiaries.</li><li><strong>Life Insurance:</strong> Any insurance policy that lists the decedent or the estate as the beneficiary</li></ul> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What are Non-Probate Assets?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Non-probate assets consist of any property that can pass outside of probate court. The main difference with this property type is that non-probate assets have specific instructions on what will happen to the property after death, usually with a named beneficiary or multiple owners listed on the title. Ownership rights of non-probate assets can be transferred to the named beneficiary without court supervision because the original owner has clear wishes on what should happen to the asset at their passing. Unlike probate assets, this property is not controlled by your will or state law, which allows for the property to be distributed according to the decedent’s wishes alone and without any interference. Non-probate assets should not be included in your probate bond amount because they are not involved in the probate estate.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Common examples of non-probate assets can be found below:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li><strong>Property Held in Trust:</strong> Any property held in a living trust would not pass through probate court</li><li><strong>Beneficiary Designations:</strong> Investments, bank accounts, and life insurance policies can all have a beneficiary designated to receive the funds at death without court supervision. These are known as payable-on-death (POD) or transfer-on-death (TOD) designations.</li><li><strong>Joint Ownership: </strong>Real estate or vehicles with joint ownership and/or survivorship rights would not be included in the probate estate and will pass to the joint owner upon the other’s death. The decedent's ownership share in a tenancy in common will typically pass through probate.</li></ul> <!-- /wp:list --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":624,"height":384,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/271813/NY/Probate%20v%20Nonprobate%20Asset%20Blog%20Infographic.png" alt="Probate assets Non-Probate Assets" width="624" height="384"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Would This Impact My Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>When petitioning to open an estate in probate court, the administrator or executor may be required to obtain a probate bond before they have the authority to manage the estate. The bond is required to ensure that the fiduciary will act ethically when handling the estate assets or carrying out their duties. Additionally, the bond guarantees compensation to any heirs or creditors who suffer financial harm from the acts of the fiduciary.&nbsp;<br><br>When setting the bond amount, the court requires the bond to cover the value of the <em>probate assets</em> that are under the court’s supervision. Non-probate assets are not included because the estate fiduciary has no control over any assets outside of court supervision. If the administrator can distinguish between what assets must go through probate court and what can avoid court supervision, they will likely have a lower bond requirement, which will come with lower expenses for the administrator and the estate.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Do I Obtain a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

Probate Weekly with Bryce Desai, Hosted by Bill Gross Probate Weekly, hosted by Bill Gross, is a weekly podcast on all things probate. Bryce Desai sits down to discuss probate surety bonds. <!-- wp:paragraph --> <p>Our probate underwriter, Bryce Desai, sat down with Bill Gross to discuss probate surety on <a rel="noreferrer noopener" href="https://billgross.exprealty.com/blog/236717/Probate+Weekly+%7C+With+Bryce+Desai" target="_blank">Probate Weekly</a>. On this weekly live stream, host Bill Gross brings on various professionals in the probate industry, such as attorneys, realtors, and vendors. This episode focused on probate surety bonds and how they can impact estate administration proceedings across the country. Bryce goes over key underwriting points, the importance of having an attorney, and Jet's application process.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p></p> <!-- /wp:paragraph --> <!-- wp:heading --> <h2>Watch the Episode on YouTube</h2> <!-- /wp:heading --> <p><iframe width="560" height="315" src="https://www.youtube.com/embed/RIJYnwNcmhQ?si=WcXCsB1KGau7vl_e" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""></iframe></p> <!-- wp:paragraph --> <p></p> <!-- /wp:paragraph --> <!-- wp:heading --> <h2>Get a Probate Bond Quote Today</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in <a href="https://jetsurety.com/probate-bonds" target="_blank" rel="noreferrer noopener">probate bonds</a> and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons -->

Simplifying Estate Settlements: What California's AB 2016 Means for Heirs and Beneficiaries Assembly Bill 2016 will increase the small estate affidavit threshold to $750,000 for the decedent’s primary residence in California estates. <!-- wp:paragraph --> <p>Probate is a costly and time-consuming court proceeding, but can be partially avoided by using a small estate affidavit. This alternative allows for estate heirs and beneficiaries in California to use an affidavit to request a transfer of property. In the past few years, California law has allowed for estates with a total value of less than $184,500 to go through the small estate process rather than a full estate administration in probate.<br><br>The recently passed Assembly Bill 2016 will increase this threshold to $750,000 for the decedent’s primary residence while maintaining the $184,500 threshold for personal property. In this blog article, we will analyze how this changes the small estate procedure in California probate and how it can impact the probate bond requirements for heirs.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>What is a Small Estate Affidavit in California?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>CA Prob Code § <a rel="noreferrer noopener" href="https://law.justia.com/codes/california/code-prob/division-8/part-1/chapter-3/section-13100/" target="_blank">13100</a> allows for any person with a legal right to inherit personal property, such as vehicles or financial accounts, to transfer the property to themselves without having to go to court by using a small estate affidavit. This is available for both <a rel="noreferrer noopener" href="https://saclaw.org/wp-content/uploads/2023/04/form-affidavit-for-collection-of-personal-property.pdf" target="_blank">personal property</a> and <a rel="noreferrer noopener" href="https://www.courts.ca.gov/documents/de305.pdf" target="_blank">real estate</a>. The heir(s) must sign and deliver this affidavit to the company or financial institution that holds the property, and they can then have the property legally transferred to their name. This process significantly reduces the costs and time required to settle an estate compared to full probate. Certain requirements must be met to use this procedure, which are all listed below:</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li><strong>Value Threshold: </strong>The estate’s value must not exceed the defined threshold:<ul><li>For deaths occurring on or after April 1, 2022, the estate must be valued at $184,500 or less.</li><li>Starting April 1, 2025, the threshold will increase to $750,000 for real property (primary residences) while remaining at $184,500 for personal property.</li></ul></li><li><strong>Time Since Death:</strong> At least 40 days must have passed since the decedent’s death.</li><li><strong>No Formal Probate:</strong> A small estate affidavit cannot be filed if a formal probate case has already been initiated. In such cases, approval from the personal representative is required before filing the affidavit.</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>To prepare a small estate affidavit, the heir must include a 1) certified copy of the death certificate, 2) proof of the decedent’s ownership of that asset, and 3) proof of the heir’s identity. The affidavit should only include <a href="/articles/detail/probate-and-non-probate-assets">probate assets</a>. If you are looking to utilize a small estate affidavit in California, it is strongly recommended to consult an attorney or your local court's <a href="https://selfhelp.courts.ca.gov/self-help/find-self-help?s" target="_blank" rel="noreferrer noopener">Self-Help Center</a>.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Assembly Bill 2016 Increases the Threshold for Real Estate</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>The California legislature and Governor Gavin Newsom recently passed and approved <a rel="noreferrer noopener" href="https://archive.ph/4Rquh#selection-4099.0-4099.1" target="_blank">Assembly Bill 2016</a>, an update to existing probate law designed to recognize the rising property values of real estate in California. This amendment increases the threshold for real estate transfers outside of probate to $750,000 for primary residences. Known as AB 2016, the law aims to make estate transfers more accessible to Californians while minimizing the expenses of settling a loved one's estate.<br><br>Under this updated law, heirs can transfer a decedent’s primary residence valued at $750,000 or less using the Petition to Determine Succession to Real Property (Form <a rel="noreferrer noopener" href="https://www.courts.ca.gov/documents/de305.pdf" target="_blank">DE-305</a>). Personal property transfers remain subject to the $184,500 limit and require a separate affidavit. This petition may only be used for the primary residence of the decedent and requires petitioners to notify all intestate heirs or beneficiaries entitled to the asset. </p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":702,"height":432,"sizeSlug":"large","className":"is-style-default"} --> <figure class="wp-block-image size-large is-resized is-style-default"><img src="https://staging-laravel-media.s3.us-west-1.amazonaws.com/files/271813/NY/Small%20Estate%20Affidvat%20vs%20Probate%20Asset%20Blog%20Infographic%20%281%29.png" alt="California Real Estate in Probate Affidavit" width="702" height="432"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Will This Impact California Probate?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Most probate cases in California involve a piece of real estate that the decedent owned, as other personal property is often transferred outside of probate with a named beneficiary. By allowing transfers of real estate up to $750,000, many families will be able to avoid probate altogether by using these small estate affidavits. Eliminating a probate proceeding cuts out multiple expenses, including attorney retainer fees, court filing costs, and the premium fee for a <a href="/probate-bonds">probate bond</a>. However, this petition will not be available for every decedent’s estate and comes with legal repercussions if not done properly.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Primary residences valued at over $1 million or real estate that is not a primary residence will still require a full probate proceeding and petitioners will often need to obtain a probate bond in these situations. The court may require the petitioner to post a <a href="https://jet.jepdevs.com/probate-bonds">probate bond</a> if the transfer is contested, as outlined in CA Probate Code § <a rel="noreferrer noopener" href="https://law.justia.com/codes/california/code-prob/division-8/part-1/chapter-3/section-13102/" target="_blank">13102</a>. Additionally, CA Prob Code § <a rel="noreferrer noopener" href="https://law.justia.com/codes/california/code-prob/division-8/part-1/chapter-3/section-13109/" target="_blank">13109</a> requires that any transferee will be just as responsible for any debts on the property as the decedent would have had if still living. <br><br>While AB 2016 improves estate transfer accessibility, navigating the legal complexities requires careful attention. Heirs are strongly advised to consult with legal professionals to understand the small estate affidavit process fully and avoid potential complications.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Do I Still Need a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Probate bonds provide a financial guarantee to all interested parties in the estate by ensuring that the administrator or executor will fulfill their fiduciary duty faithfully. When petitioning to obtain Letters of Administration in a full probate proceeding, the administrator or executor will likely need a probate bond before they have the authority to manage the estate. However, most small estate affidavits for personal property transfers or real property transfers will not need a probate bond.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>The judge of the superior court will issue a court order if they determine one is necessary, and this typically only comes up in contested proceedings. Contact our probate experts at <a href="tel:8554700877">(855) 470-0877</a> or <a href="mailto:probate@jetsurety.com">probate@jetsurety.com</a> if you need assistance in determining your bond requirement.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>How Do I Obtain a Probate Bond?</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>Going through the probate process? Don’t fret. We are experts in probate bonds and have expedited the bonding process to make obtaining probate bonds easy and efficient. Click below to get your bond today. Have any questions? Give us a call at <a href="tel: 8554700877">(855) 470-0877</a> to speak to one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->

The Do's and Don'ts for Fiduciaries The following Do's and Don'ts are basic rules that you should follow to fulfill your fiduciary duty and avoid any potential bond claims <!-- wp:paragraph --> <p>As a court-appointed fiduciary, you are responsible for the proper care and management of someone else's property. The court has entrusted you with the powers of a Fiduciary, which comes with specific duties and responsibilities set by state law. The following are general guidelines and should not be construed as legal advice. Please consult with an attorney about fiduciary matters.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>The following DO's and DON'Ts are basic rules that you should follow to properly fulfill your fiduciary duty and avoid any potential bond claims.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Best Practices for a Fiduciary</h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>Utilize a Checking Account:</strong> Ensure all disbursements are made through a checking account. The checking account must be established with a court-approved bank or financial institution and registered under the name of the estate or guardianship. Canceled checks and bank statements serve as the most reliable records of your expenditures from the trust.<br></li><li><strong>Maintain Accurate Records:</strong> Keep detailed records of all receipts and disbursements. Utilize one of the available <a href="https://executor.org/plan/create-record-keeping-system/executor-expense-spreadsheet/">web applications</a> designed for tracking probate-related expenses and revenues.&nbsp;<br></li><li><strong>Consult Your Attorney:</strong> Always seek guidance from your attorney. Their expertise is invaluable and is what you are paying for. If you do not have an attorney, ensure that you properly research your role and responsibilities as a fiduciary.<br></li><li><strong>Prudent Investment and Management:</strong> Manage the estate’s assets with the care, skill, and caution of a prudent fiduciary, under the court’s directions or approvals. It is advisable to consult with professionals such as a Certified Public Accountant (CPA) or Certified Financial Planner (CFP), especially for larger estates.<br></li><li><strong>Timely Payment of Bond Premiums:</strong> Ensure that bond premiums are paid promptly when due.<br></li><li><strong>Follow all Court Orders: </strong>To prevent mismanagement of the estate, it is crucial to adhere to all court orders and ensure timely filing of accounting inventories</li></ol> <!-- /wp:list --> <!-- wp:paragraph --> <p>By adhering to these guidelines, you can effectively manage the estate and fulfill your fiduciary responsibilities with professionalism and diligence.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Missteps in Fiduciary Duties</h2> <!-- /wp:heading --> <!-- wp:list {"ordered":true} --> <ol><li><strong>Do not treat the property as your own: </strong>Even if you are an heir or relative, do not treat the estate property as your own until the Court and the law officially transfer ownership to you. Keep the estate’s property separate from your personal assets. Failing to do so could result in criminal charges.<br></li><li><strong>Avoid major expenditures: </strong>Do not spend significant amounts of the estate’s funds without obtaining written approval from the Court. This ensures that all major financial decisions are legally sanctioned.<strong><br></strong></li><li><strong>Do not delay in reporting to the Court: </strong>Avoid delays in reporting to the Court. Follow your attorney’s instructions meticulously when signing and filing documents with the Court to ensure compliance with legal requirements.</li></ol> <!-- /wp:list --> <!-- wp:paragraph --> <p>By adhering to these guidelines, you can effectively manage the estate property and fulfill your fiduciary duties with integrity and professionalism. If you have any questions or need further assistance, consulting with your attorney is always a prudent step.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:image {"width":540,"height":540,"sizeSlug":"large"} --> <figure class="wp-block-image size-large is-resized"><img src="https://production-laravel-media.s3.us-west-1.amazonaws.com/files/shares/Infographics/The%20DO%E2%80%99s%20and%20DON%E2%80%99Ts%20for%20Fiduciaries%20%281%29.png" alt="Fiduciary best practices" width="540" height="540"/></figure> <!-- /wp:image --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:heading --> <h2>Bond Responsibilities</h2> <!-- /wp:heading --> <!-- wp:paragraph --> <p>As a fiduciary, the court may require you to obtain a bond. Being the principal of the bond entails additional responsibilities. It is crucial to keep your bond renewed and compliant with the court’s requirements.&nbsp;</p> <!-- /wp:paragraph --> <!-- wp:list --> <ul><li>1. The bond remains in effect and must be renewed until a final discharge is issued by the court and delivered to the surety.</li><li>2. The first year's premium is fully earned.</li><li>3. The court must order all increases and decreases to the bond amount.</li><li>4. The bond premium (including renewals) is a legitimate expense to the estate/guardianship for which you are personally responsible for paying each year when due!</li></ul> <!-- /wp:list --> <!-- wp:paragraph --> <p>Being a court-appointed fiduciary is a significant responsibility, involving the management of someone else’s property. This role demands meticulous attention to detail and a thorough understanding of state laws regarding fiduciary duties. While the guidelines provided are general, each case is unique, and it is essential to seek sound legal advice from an attorney during your tenure as a fiduciary.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>If you have been appointed as a fiduciary and require a bond, we can help. Our expertise in fiduciary bonds allows us to expedite the bonding process, making it easy and efficient for you to obtain the necessary bonds. Click below to get your bond today. If you have any questions, please call us at (855) 470-0877 to speak with one of our probate bond experts.</p> <!-- /wp:paragraph --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:buttons --> <div class="wp-block-buttons"><!-- wp:button {"borderRadius":3,"style":{"color":{"background":"#0abb01"}},"textColor":"white"} --> <div class="wp-block-button"><a class="wp-block-button__link has-white-color has-text-color has-background" href="/bondquote?bond_id=11270" style="border-radius:3px;background-color:#0abb01" rel="www.google.com">GET A PROBATE BOND QUOTE</a></div> <!-- /wp:button --></div> <!-- /wp:buttons --> <!-- wp:spacer {"height":20} --> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <!-- /wp:spacer --> <!-- wp:paragraph --> <p><em>The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.</em></p> <!-- /wp:paragraph -->