When someone passes away in Kentucky, they leave behind assets. A way to take care of this situation is through probate, a legal process that settles and distributes a deceased individual’s estate. Estates also require executors who must follow Kentucky’s laws and any information contained in a decedent’s trust or will.
What is a probate bond?
Otherwise referred to as a surety bond or fiduciary bond, a probate bond acts as a type of insurance. This bond helps ensure that an estate’s executor does everything possible to protect an estate’s interest and follows a decedent’s final wishes. A court typically mandates a probate bond.
What are examples of probate bond violations?
Executors violating probate bonds can occur in many ways. One example of a violation happens when an executor uses an estate’s funds or assets to cover this individual’s personal expenses. This crime is otherwise known as embezzlement. Another example of a probate bond violation is when executors fail to provide an accurate and detailed inventory of a decedent’s assets.
During the estate planning process, an executor can commit a violation concerning conflicts of interest. Examples of conflicts of interest can include showing favoritism towards one or a few beneficiaries over others.
Releasing a probate bond
A probate bond is temporary. Once an executor completes their required duties and satisfies the court, it will release the probate bond. This release can only occur when the probate process is complete.
Being an estate’s executor is an important role that requires extensive time and effort. If you fail to carry out your executor-related duties appropriately, an estate’s beneficiaries and creditors can file a legitimate claim against a probate bond.