Frequently asked questions:
Who pays for a probate bond in California?
the person appointed as the personal representative of the estate, such as the Administrator or Executor, is responsible for paying the premium for the probate bond.
Is a probate bond refundable in California?
Although the personal administrator has to pay the premium for the bond, the fee they have paid is refundable by the estate as an “estate expense” so generally, yes the probate bond fee is refundable.
With this in mind, the personal representative must keep thorough records of estate expenses so when it’s time to close out the estate - the personal representative will be able to be paid by the estate for the expenses of settling the estate with records to back it up.
Why do I need a Bond? I mean, what is an example of Malfeasance?
Probate bonds are necessary to safeguard the estate and its beneficiaries from any potential wrongdoing, mismanagement, or carelessness by the individual responsible for administering the estate. In this context, malfeasance refers to any inappropriate or unethical actions carried out by the personal representative while overseeing the estate.
Here are some specific examples of malfeasance that highlight the need for a probate bond:
Unlawful use of funds: The personal representative might unlawfully use, misappropriate, or even take assets from the estate for their personal advantage or other unauthorized objectives.
Neglecting financial obligations: The personal representative could fail to fulfill their responsibility to settle outstanding taxes, debts, or other liabilities of the estate. This negligence might lead to fines or legal complications down the line.
Improper management of assets: The personal representative might make unwise investment choices, overlook the proper upkeep or management of properties, or sell assets at a price that's far below their actual worth. Such actions could result in a decrease in the overall value of the estate.