Serving as a personal representative in Texas comes with legal duties. These duties include protecting estate assets and following court requirements. In some probate cases, a court may require an executor or administrator to post a fiduciary bond. The bond helps protect the estate while assets are handled and distributed.
Purpose of a fiduciary bond
A fiduciary bond is meant to protect the estate and other parties if a personal representative does not perform the duties covered by the bond. The surety’s obligations depend on the bond terms and applicable law.
The bond creates an obligation between the representative and the surety company. It helps ensure the representative follows the duties required in probate cases.
When Texas probate courts require a bond
Texas law generally requires a personal representative to give bond unless the governing will or applicable law provides otherwise. The court may also require or modify a bond depending on the estate. The bond amount often depends on the value of the estate and expected income. Keeping accurate estate records can help show that the representative is handling the estate properly.
Factors affecting bond approval
Applying for a fiduciary bond involves an underwriting review. The surety company looks at the applicant’s background before issuing coverage. Several factors can affect whether the surety will approve the bond:
- The applicant’s credit history
- The value of the estate and anticipated income
- The applicant’s financial and legal history, depending on the surety’s underwriting requirements
- The complexity of the probate matter
Knowing these factors can help representatives prepare for probate and avoid delays.
Managing fiduciary obligations
The Texas Estates Code sets out rules fiduciaries must follow. Failing to comply with a required bond order can lead to court action and may result in the representative’s removal or other remedies. A fiduciary who breaches a duty may also face personal liability for resulting losses. Following bond and fiduciary rules can help keep the probate case on track.
Why bond compliance matters in Texas probate
Meeting bond requirements can help avoid delays, disputes and court action during probate. Because bond rules may vary based on the will, the court and the details of the estate, representatives should confirm what applies before taking action.