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Estate Planning Terms: Executive Bond Waivers

Once an individual dies leaving behind property, someone needs to handle the obligation to handle that property and after that move it to new owners. This person, referred to as an administrator or an executor, has a special duty to safeguard the estate property and to see the decedent’s wishes are followed.

To protect versus any possible mistakes or misbehavior on the part of the executor, states often require the executor to post a bond– a particular amount of money– so any damage caused can be paid back. In lots of states the bond can be waived however only under particular scenarios. Speak to an attorney in your location for state-specific recommendations about bond waivers.
Testamentary Waiver: A person who develops a Will, called a testator, gets to choose who acts as his or her executor. Testators can also pick to let the executor serve without needing to post a bond. This bond waiver is not needed to produce a Will, but without it the executor will normally have to publish a bond.

Voluntary Waiver: Executors may likewise be able to waive the bond requirements if they get a waiver arrangement from the heirs or beneficiaries of the estate. If all the recipients consent to the waiver in writing, the administrator can send their arrangement to the probate court and ask the court to waive the bond requirements. This may not be possible in all states, so talk with a lawyer.