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A Florida surety bond guarantees principal owners and the public that services will be performed with excellence and security. Florida legally requires a variety of contractors and organizations to secure bonds to conduct business across the public service industry. Single Source Insurance is a leading Florida bonding company. Apply easily online and take advantage of lowest rates. Browse the most common types of FL surety bonds, or contact us for a full list.
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What Are Personal Representative Bonds?
In many states, �executor� is the term for the person designated to manage a decedent�s estate and distribute assets according to the will. Florida uses the term �personal representative� for someone in this role. Responsibilities of that position include paying off the debts of the estate, gathering assets, filing tax returns, distributing assets, and eventually closing the estate in accordance with Florida law and the stated wishes of the decedent.
In carrying out these responsibilities, a personal representative is acting in a fiduciary capacity and is required to place the interests of the beneficiaries and the estate first. They must act with honesty and integrity when making decisions regarding the estate.
A personal representative bond, also known as an estate bond, protects the estate and the estate�s beneficiaries from financial loss due to malfeasance, fraud, or any other breach of fiduciary responsibilities by the personal representative.
Florida law sets out bonding requirements for people serving as personal representatives in probate court matters. There are certain situations in which bonding is waived, though the granting of waivers varies from one jurisdiction to the next.
The three parties to the legally binding personal representative surety bond agreement are:
If the principal violates the terms of the personal representative bond agreement, any beneficiary or other party who suffers a financial loss as a result of that violation can file a claim against the bond. The surety company will investigate to ensure that the claim is valid.
It�s common for the surety to pay a valid claim upfront, even though the principal is the one who is legally obligated to pay all valid claims. By doing so, the surety is in effect advancing credit to the principal and is entitled to full reimbursement. The claim is paid in a timely fashion, and the principal is given a little time to pull together the necessary funds to cover the claim.
The annual premium for a personal representative bond is a small percentage of the required bond amount set by the probate court. By statute, that required bond amount is based on the following factors:
The premium rate is determined by the surety and is typically 0.005% (half of one percent). That would put the annual premium for a $500,000 estate at $250.
Request a convenient online quote today, or call us to see how our surety bond professionals can help you get the personal representative bond you need for the probate court.
