An Estate (or trust) bond is like an insurance policy issued by a surety company for an annual premium. It protects the beneficiaries of an estate against the wrongful taking of assets from the estate because the estate representative took and/or misspent the money; beneficiaries can make a claim against the bond.
In most cases, a bond is ordered by the Probate Court Judge unless it is waived.The cost of the bond can be significant- for example, approximately $700.00 for an estate estimated at a value or $130,000. Accordingly, the goal would be to get court approval of the estate asset distribution and closure (within the first year after the representative is appointed) so the bond does not need to be renewed with another premium expense incurred.