A probate bond ensures that the personal representative of an estate follows the directions of the court for the distribution of estate property. The bond functions like an insurance policy for the estate. If the personal representative decided to steal from the estate or withhold money from heirs, the bond company would pay for the difference up to the amount of the bond.
A probate bond is required for all estates over $40,000.00 in value in Missouri. For most counties, the only exception is if the decedent waived the need for a bond in his or her will.
How much does a probate bond cost?
The cost of a probate bond is usually a fixed percentage (approximately .5%) of the value of the estate. For example, if the estate contained assets valued at $150,000.00, the cost of the bond premium would be approximately $750. Furthermore, the personal representative has to financially qualify in order to have the bond issued.
The cost of a probate bond is something to consider for your loved ones. If you have questions about how to avoid probate bonds or would like to know if your current will waives the need for a probate bond, don’t hesitate to call me to see what I can do for you.