Arizona Probate Bonds

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What Are Arizona Probate Bonds?

Arizona probate bonds are surety bonds required by a probate court. They ensure that people appointed to fiduciary roles carry out their responsibilities in a lawful and ethical manner. While probate court has jurisdiction in matters involving the disposition of the assets of a deceased person, probate judges also oversee fiduciaries managing the assets of minors and incapacitated adults.

Probate bonds serve two primary purposes. First, they act as a fiduciary�s guarantee to perform their assigned duties in accordance with prevailing law. They also provide a source of funds for compensating those who suffer financial harm due to the fiduciary�s malfeasance or negligence.

Understanding Arizona Surety Bonds: Requirements and Applications

Probate bonds are required from:

• Executors named in a will to pay creditors and distribute assets to heirs of the deceased. Under certain circumstances, with the agreement of all heirs, the bonding requirement may be waived by the court.
• Administrators appointed by a probate court to distribute the assets of a deceased person when there is no will providing instructions for their disposition.
• Trustees appointed�to manage the assets a decedent’s will leaves in trust for specific beneficiaries.
• Guardians appointed�to manage the income and assets of a minor.
• Conservators appointed�to make decisions for and manage the income and assets of an incapacitated adult.

How Do They Work?

There are three parties to every probate surety bond agreement:

• The probate court�requiring the bond is the “obligee”
• The executor, administrator, trustee, guardian, or conservator required to purchase the bond is the “principal”
• The company�underwriting and issuing the bond is the “surety”

The required bond amount is based on the value of the estate the principal will be managing, including any real estate. In approving a probate bond application, the surety is agreeing to extend the principal credit up to the required bond amount if it becomes necessary to pay claims against the bond.

Claims can be filed by individuals who suffer financial harm because of the unlawful or unethical actions of the principal�for example, an unpaid creditor, an heir who doesn�t receive his or her rightful share of the estate, or a minor whose assets are misappropriated or stolen by the principal.

The surety will pay a valid claim initially, which creates a debt that the principal is legally obligated to repay. The surety bears no legal responsibility for paying claims.

What Do They Cost?

The cost of an Arizona probate bond is a small percentage of the required bond amount. The surety�s main concern is the risk of not being repaid by the principal. That�s why the primary factor taken into account in setting the premium rate is the principal�s creditworthiness, as indicated by his or her personal credit score. The higher the principal�s credit score, the lower the premium rate.

Get Bonded Today

Request a convenient online quote today, or call us to discuss the Arizona probate bond you will need in order to serve as a court-appointed fiduciary in Arizona.

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