What is a bond? Simply put, a bond is a type of insurance policy designed to protect the assets of the estate in case of intentional or unintentional misuse by the personal representative. This representative could be an Executor or an Administrator.
What is a Bond? | Estate Planning in Raleigh NC
Here, you will find information that concerns bonds and when they might be needed. If you have any questions while reading this article, be sure to contact our attorney. We are here to help you navigate these situations so that you have a better understanding of estate planning in Raleigh NC.
- If a person dies without leaving a will (intestate) and the person qualifying as Administrator is a resident of North Carolina, then the requirement for a bond may be waived by all heirs except minors or incompetent adults, unless a bond is otherwise required by the Clerk of Court.
- When there are minor heirs or heirs that have been declared incompetent by a court, or heirs who otherwise are unable or unwilling to waive the bond, the person applying as Administrator will be required to post a bond.
- In the case of minor or incompetent adult heirs, the parent(s) or guardian(s) cannot waive the bond on behalf of the heir.
- If the person applying as Administrator is not a resident of North Carolina, pursuant to North Carolina General Statute 28A-8-1, the bond cannot be waived by the heirs. In this case, the applicant must first post a sufficient bond prior to or at the time of qualifying as the Administrator before the Clerk of Court.
- The bond amount is calculated in accordance with the requirements of North Carolina law. The value of the bond will be slightly higher (1.25%) than the value of the personal property to protect any additional assets which may come into the hands of the Administrator at a later date. Eldreth Law Firm will be happy to take care of calculating the necessary value of the bond for you.
Eldreth Law Firm PC | Estate Planning in Raleigh NC
We at Eldreth Law Firm PC will be happy to assist in obtaining waivers or the personal representative’s bond if applicable or assist in obtaining the bond from a local and reliable bonding agent or surety company. We can also assist you with other needs in estate planning in Raleigh NC. Call now to schedule an appointment.