PROBATE BOND

Fiduciary bonds are required by federal or provincial courts (obligee) from persons, companies or associations (principal's) that hold in trust and administer property belonging to others.

These bonds are required when a person dies or becomes incapable of looking after their financial affairs.

The Surety guarantees to the obligee that the principal will faithfully perform their duties as trustee and comply with the orders of the court and the Estate Act. The bond penalty is usually subject to a preset maximum amount which depends on the value of the property under administration. Some courts may require the bond limit to be two times the value of the estate.