Every personal representative must file a bond with the Probate Court. The Bond is a form that states that the personal representative shall be personally liable for the amount stated on the bond which represents the estimated amount of the value of the decedent’s real and personal estate.
A surety is a written agreement by a bond company which, in exchange for an annual premium, covers damage or loss to the estate caused by the personal representative’s actions. In effect, it is an insurance policy for the personal representative’s breach of his or her duties. The decedent’s will may waive sureties. For example, the will may state:
I request that any personal representative nominated in this will be exempt for furnishing a bond, or if a bond is required, from furnishing sureties thereon.
It is important to note that the interested persons in the estate must assent to the waiver of sureties on the bond. It should be noted that the language above only waives sureties for the nominated personal representatives – if they are unable or unwilling to serve, an alternate or any administrator appointed by the court would still need to provide sureties on their bond.
Why is this important? Most of my clients do not give this topic much thought when they execute their wills. Many of my clients who petition to become a personal representative are surprised to learn that they are personally liable. Understanding this concept at the point of drafting a will allows the Client to decide whether sureties are necessary. In many cases, they simply are not.
Stiles Law, with offices located in Boston and Marshfield, Massachusetts, offers estate planning services including wills, trusts, powers of attorney, guardianship nominations, and more. Stiles Law serves all areas of eastern Massachusetts–the North Shore, Boston, and Cape Cod, in addition to the entire South Shore, including: Plymouth, Kingston, Duxbury, Hanover, Pembroke, Marshfield, Scituate, Norwell, Cohasset, Hull, Hingham, Weymouth, Braintree, Milton, Quincy, Dorchester, Charlestown, Brookline, Dedham, Canton, Rockland, and everywhere in between..
Copyright © 2018 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.