Probate Bond is also known as the estate, executor, and fiduciary bonds. These bonds are required to be purchased by a person responsible for distributing a person’s estate after he or she passes away. The probate bond protects the deceased’s assets.
Trustees have certain duties (some of which are fiduciary). These include the duty to:
- Carry out the expressed terms of the trust instrument
- Defend the trust
- Prudently invest trust assets
- Be impartial among beneficiaries
- Accountable for actions and keep beneficiaries informed
- Be loyal
- Not delegate
- Not profit
- Not be in a conflict of interest position
- Administer in the best interest of the beneficiaries
A trustee carries the fiduciary responsibility and liability to use the trust assets according to the provisions of the trust instrument (and often regardless of their own or the beneficiaries’ wishes). The trustee may find himself liable to claimants, prospective beneficiaries, or third parties. In the event that a trustee incurs a liability (for example, in litigation, or for taxes, or under the terms of a lease) in excess of the trust property they hold, they may find themselves personally liable for the excess.