Trusts and Estates

Executive Bond Services has extensive experience writing bonds required for estates. Most commonly, we underwrite bonds for intestate estates, but we also write bonds for successor administrators, estates where the wills are annexed but cannot be probated as such, and for ancillary administrators.

We also write probate bonds where preliminary executors are appointed and, in New York, advance payment of executor bonds. Advance payment bonds indemnify the estate and interested parties if the court determines at a future date that an executor should not have received all or a part of commissions to which he/she was entitled under the law. Under such circumstances the executor will be required to return the share of commissions that the court determines must be refunded to the estate.

Qualified Domestic Trustee bonds and Deferred Tax Payment bonds are two bond classes that are electively required by the Internal Revenue Service. These bonds are two of the more interesting and complex bonds that we write. Earlier this year I dealt directly with the IRS and constructed a Deferred Tax Payment bond form that provides underwriting terms acceptable to sureties.

Previously, the length of the deferment provided an insurmountable obstacle to writing these bonds, but now they are a viable option. Occasionally, executors/trustees/guardians discover that estate assets have become lost. Lost assets may include stock certificates, bonds, certified checks and other negotiable items. Transfer agents, banks, financial institutions and stock companies that are asked to re-issue these lost or stolen instruments regularly require lost instrument bonds to indemnify them in the event they re-issue the instrument and, in most instances of loss, fraud is committed by the applicant. Thus, the transfer agents, et al., who re-issue the financial instrument are protected against loss.

We also write Abandoned Property bonds that are required to secure funds escheated to the various States’ Comptroller’s/Treasurer’s office. Those departments require surety bonds to indemnify themselves in the event they return the funds to an improper applicant.

As with every bond we write, our sureties enable us to streamline the underwriting process. We encourage you to call us when you have questions, and we look forward to working with you.

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