In Maryland, a probate court bond is issued to executors and guardians, and this bond requirement often causes confusion for those new to Maryland probate. This bond requirement is in place for anyone serving as the administrator or executor of the estate of a deceased person and anyone serving as the guardian of an estate for a person with a disability.
The purpose of the bond is to protect the beneficiaries of the estate from wrongful acts or negligence by the executor or guardian that diminishes the size of the estate. The bond acts like an insurance policy protecting the estate. The representative is required to pay an annual premium. The premiums are calculated at one-half of one percent (0.5%), which equates to $500 for every $100,000 of estate assets. The bond company then insures and protects the assets of the estate from any potential losses.
The cost of a probate bond varies depending on the amount of coverage needed. It is based on the total amount of the estate, which also includes the value of any real estate.
The bond companies send representatives to probate court to assist in getting the bonds put in place in a timely manner. In some circumstances, the premiums may be reimbursed by the assets of the estate. For more information on how bonds work and to make sure you follow the proper procedure, please contact Stouffer Legal at 443-470-3599 in the Greater Baltimore area.