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Alabama Administrator or Executor Bond
In Alabama, the person who is placed in charge of an estate after the owner’s death, appointed as administrator by a court or named executor in a will, must obtain an Administrator or Executor Bond. The administrator or executor is commonly referred to as the personal representative. The bond requirement is found in Title 43, Chapter 2 of the Code of Alabama, which states that the bond will be used to reimburse a person who is injured by a violation of the rules and regulations the personal representative must follow.
Jet Insurance Company offers the Administrator or Executor Bond as a guarantee to probate courts that the administrator/executor will carry out their obligations without negligence or willful harm.
With Jet, you can apply for your Administrator or Executor Bond through our streamlined bond process, making it quicker and easier for you to apply, purchase, and file the bond so you can focus on performing your duties. Have any questions? Give us a call at (855) 470-0877 and we will be happy to help.
How Much Does the Alabama Executor/Administrator Bond Cost?
Jet charges a minimum of $85 per year for the Alabama Administrator Bond or the Alabama Executor Bond, with the price depending on the size of the bond. We offer special tiered pricing that decreases the percentage rate paid for larger bond amounts. Applicants can also save if they purchase bonds for more than one year at a time.
To determine how much the bond will cost, administrators and executors can follow the steps listed below:
- Determine the Required Bond Amount
The clerk of the probate court will provide the administrator/executor with their required bond amount when the clerk evaluates the estate's assets based on Alabama Code Section 43-2-851.
- Calculate the Total Cost
Administrator and executor bonds up to $17,000 in size will only cost $85 per year. For each additional $1,000 increase in size, the bond premium will increase by the corresponding amount outlined in the table below.
| Bond Amount | Additional Premium (per $1,000) | Bond Cost (1 year) |
|---|---|---|
| $0 - $17,000 | $85 flat rate | $85 |
| $17,001 - $50,000 | $5.00 | $85 - $250 |
| $50,001 - $200,000 | $3.75 | $250 - $813 |
| $200,001 - $500,000 | $2.50 | $813 - $1,563 |
| $500,001 - $1,500,000 | $1.00 | $1,563 - $2,063 |
| $1,500,000+ | $0.50 | $2,063+ |
For example, a $30,000 executor bond will cost $210 per year while a $40,000 executor bond will cost $270 per year. Probate bonds are generally refundable as they are a valid, estate-related expense, so be sure to check with the superior court to determine if you are eligible for reimbursement. Jet also offers discounted rates for bonds purchased for multi-year terms. Call us at (855) 470-0877 to find out how much your administrator/executor bond will cost.
How Is the Bond Limit Determined?
The Executor or Administrator Bond limit is determined by a calculation of the total capital value of the estate plus the estimated income for one year minus the worth of securities deposited, as indicated in Section 43-2-851. The limit must be held in an appropriate amount to protect the estate; the court can reduce or increase the bond limit as needed.
What Is the Purpose of the Executor or Administrator Bond?
The Administrator or Executor Bond requirement is written in the Code of Alabama, 1975 as a measure that guarantees that the person who is left in charge of the estate’s assets will be attentive to completing their duties honorably. If there is a failure to administer the assets or execute the will faithfully, the bond will make reparations to the injured party.
A surety bond is required for all personal representatives carrying out the provisions of the will or handling the estate. An exception to the bond requirement is if the will explicitly states that a bond is not required. However, a court may still impose a bond if there is reason to believe that the estate will be wasted.
How to Apply for the Executor/Administrator Bond With Jet
Applying for your Administrator or Executor Bond is easy with Jet! Our online application will ask for only the information that is needed to get you a quote, including the bond limit and a copy of the will (if applicable). After you have finished filling it out, your application will be reviewed by a member of Jet’s underwriting team. If any additional information is needed to get you a quote, we will let you know. Once the short review is finished, you will receive an email with an approved quote that is ready to purchase online. A digital copy of the bond and the receipt of purchase will be sent in an email after payment is made.
Is It Possible to Cancel My Administrator or Executor Bond? Are Refunds Available?
Yes, you can cancel your bond by providing written notice to Jet. To make it simple, an email to [email protected] will be sufficient. That said, these bonds are generally fully earned for the first year of coverage, meaning if you had paid for a one-year term a refund is not available. However, if you purchased multiple years in advance, you may be eligible for a refund for the remaining time left after the court releases Jet from liability.
Does the Administrator/Executor Bond Need to Be Renewed?
You must have an active bond while you are fulfilling your duties. Once the will has been faithfully executed or assets have been settled and the clerk can verify the completion of your obligations per Section 43-2-628, the bond is no longer needed. The clerk will release you and Jet from liability, effectively cancelling the bond.
You will be notified well in advance of your bond term ending. If you have not completed your duties as executor or administrator, another term can be purchased to extend the bond coverage.
If Jet does not receive payment for the bond extension, our team will contact your attorney. Should the attorney make payment on your behalf, you must reimburse them. If you are not working with an attorney, Jet will notify the court and a hearing will be scheduled to ensure payment of the bond. If payment is still not made, the court will revoke power as executor or administrator and all assets shall be surrendered to the court.
How Does an Administrator or Executor Avoid Bond Claims?
An administrator or executor that is charged with the execution of a will or an estate in Alabama is obligated to follow the rules and regulations found in Title 43, Chapter 2 of the Code of Alabama. Essentially, the behavior prescribed by the Code is summed up in Section 43-2-833 and prevents misconduct in carrying out the will or protecting the benefit of the estate.
Examples of misconduct, which can lead to a claim, are:
- Embezzlement
- Nonpayment of income tax returns
- Negligence in accounting
- Mishandling assets
Claims can be filed by any person who questions the administrator or executor’s integrity in fulfilling their duties. Heirs, creditors, or successors are often the ones who lay claim against the bond. Civil action can be taken within the same county in which the letters of administration were given (Section 43-2-130), and must be after at least six months since the personal representative has been granted letters by the court (Section 43-2-131).
What Happens if I Get an Administrator/Executor Bond Claim?
If a claim is filed against you, notify Jet immediately. Our team will look into the allegation and gather all evidence from you and whoever filed the claim. During this time, it is important for you to be honest and responsive so Jet can defend as best as we can. One method of defense can be found in Section 43-2-139; the personal representative can submit the inventory of the estate to indicate that it lowered in value for reasons that were not caused by the personal representative’s misconduct. If you are not found in violation of your duties, the claim will be dropped.
However, if your actions prove a claim to be valid, Jet is obligated to pay the claimant for damages until the full limit is exhausted (Section 43-2-137). This payout serves as an extension of your credit, and since your actions caused the claim, you must pay Jet back in the amount of the payout.
Can Jet File the Executor or Administrator Bond for Me?
Yes, Jet can! When you are purchasing your Administrator/Executor Bond, you can choose how to file the bond: have Jet send your bond to the appropriate probate court or mail it to your preferred address to submit it yourself. After purchase, you will receive an email with a digital copy and receipt to keep in your records.
To file the bond yourself, you must mail it to the corresponding probate court found below.
| County Courthouse | Phone | Mailing Address |
|---|---|---|
| Autauga | (334) 361-3728 | 176 W Fifth Street Prattville, Alabama, 36067 |
| Baldwin | (251) 937-0260 | 208 Courthouse Square Bay Minette, Alabama, 36507 |
| Barbour | (334) 687-1530 | PO Box 758 Eufaula, Alabama, 36072 |
| Bibb | (205) 926-3108 | 8 Court Sq W, Suite A Centreville, Alabama, 35042 |
| Blount | (205) 625-4191 | 220 Second Ave E, Room 101 Oneonta, Alabama, 35121 |
| Bullock | (334) 738-2250 | PO Box 71 Union Springs, Alabama, 36089 |
| Butler | (334) 382-3512 | PO Box 756 Greenville, Alabama, 36037 |
| Calhoun | (256) 241-2825 | 1702 Noble Street, Suite 102 Anniston, Alabama, 36202 |
| Chambers | (334) 864-4380 | 2 South Lafayette St. Lafayette, Alabama, 36862 |
| Cherokee | (256) 927-3363 | 260 Cedar Bluff Road, Suite 101 Centre, Alabama, 35960 |
| Chilton | (205) 755-1555 | PO Box 270 Clanton, Alabama, 35045 |
| Choctaw | (205) 459-2414 | 117 South Mulberry Butler, Alabama, 36904-2557 |
| Clarke | (251) 275-3251 | PO Box 10 Grove Hill, Alabama, 36451 |
| Clay | (256) 354-2198 | PO Box 1120 Ashland, Alabama, 36251 |
| Cleburne | (256) 463-5655 | 120 Vickery Street, Room 101 Heflin, Alabama, 36264 |
| Coffee | (334) 897-2211 | PO Box 311247 Enterprise, Alabama, 36331 |
| Colbert | (256) 386-8542 | PO Box 47 Tuscumbia, Alabama, 35674 |
| Conecuh | (251) 578-1221 | PO Box 149 Evergreen, Alabama, 36401 |
| Coosa | (256) 377-4919 | PO Box 218 Rockford, Alabama, 35136 |
| Covington | (334) 428-2510 | PO Box 789 Andalusia, Alabama, 36420 |
| Crenshaw | (334) 335-6568 Ext. 226 | PO Box 328 Luverne, Alabama, 36049 |
| Cullman | (256) 775-4665 | PO Box 970 Cullman, Alabama, 35056 |
| Dale | (334) 774-2754 | PO Box 580 Ozark, Alabama, 36361 |
| Dallas | (334) 876-4830 | PO Box 987 Selma, Alabama, 36702 |
| DeKalb | (256) 845-8510 | 300 Grand Avenue SW, Ste 100 Fort Payne, Alabama, 35967 |
| Elmore | (334) 567-1140 | PO Box 280 Wetumpka, Alabama, 36092 |
| Escambia | (251) 867-0297 | PO Box 557 Brewton, Alabama, 36427 |
| Etowah | (256) 549-5342 | PO Box 187 Gadsden, Alabama, 35902 |
| Fayette | (205) 932-4519 | PO Box 670 Fayette, Alabama, 35555 |
| Franklin | (256) 332-8801 | PO Box 70 Russellville, Alabama, 35653 |
| Geneva | (334) 684-5640 | PO Box 430 Geneva, Alabama, 36340 |
| Greene | (205) 372-3340 | PO Box 790 Eutaw, Alabama, 35462 |
| Hale | (334) 624-8740 | 1001 Main St. Greensboro, Alabama, 36744 |
| Henry | (334) 585-3257 | 101 Courtsquare, Suite A Abbeville, Alabama, 36310 |
| Houston | (334) 677-4792 | PO Box 6406 Dothan, Alabama, 36302 |
| Jackson | (256) 574-9290 | PO Box 128 Scottsboro, Alabama, 35768 |
| Jefferson | (205) 325-5426 | 716 Richard Arrington, Jr. Blvd Birmingham, Alabama, 35203 |
| Lamar | (205) 695-9119 | PO Box 338 Vernon, Alabama, 35592 |
| Lauderdale | (256) 760-5804 | PO Box 1059 Florence, Alabama, 35631 |
| Lawrence | (256) 974-2439 | P.O. Box 310 Moulton, Alabama, 35650 |
| Lee | (334) 745-9761 | PO Box 2266 Opelika, Alabama, 36803 |
| Limestone | (256) 233-6427 | 100 South Clinton Street, Suite D Athens, Alabama, 35611 |
| Lowndes | (334) 548-2365 | PO Box 5 Hayneville, Alabama, 36040 |
| Macon | (334) 724-2611 | 101 East Rosa Parks Ave, Suite 101 Tuskegee, Alabama, 36083 |
| Madison | (256) 532-3330 | 100 North Side Square, Room 101 Huntsville, Alabama, 35801 |
| Marengo | (334) 295-2210 | PO Box 480668 Linden, Alabama, 36748 |
| Marion | (205) 921-2471 | PO Box 1687 Hamilton, Alabama, 35570 |
| Marshall | (256) 571-7764 | 425 Gunter Ave, Suite 110 Guntersville, Alabama, 35976 |
| Mobile | (251) 574-6000 | PO Box 7 Mobile, Alabama, 36601 |
| Monroe | (251) 743-4107 | PO Box 665 Monroeville, Alabama, 36461 |
| Montgomery | (334) 832-1240 | PO Box 223 Montgomery, Alabama, 36101 |
| Morgan | (256) 351-4675 | PO Box 848 Decatur, Alabama, 35602 |
| Perry | (334) 683-2210 | PO Box 478 Marion, Alabama, 36756 |
| Pickens | (205) 367-2010 | PO Box 370 Carrollton, Alabama, 35447 |
| Pike | (334) 566-1246 | 120 W. Church Street Troy, Alabama, 36081 |
| Randolph | (256) 357-4933 | PO Box 249 Wedowee, Alabama, 36278 |
| Russell | (334) 298-7979 | PO Box 700 Phenix City, Alabama, 36868 |
| Shelby | (205) 669-3710 | PO Box 825 Columbiana, Alabama, 35051 |
| St. Clair | (205) 594-2120 | PO Box 220 Ashville, Alabama, 35953 |
| Sumter | (205) 652-7281 | PO Box 1040 Livingston, Alabama, 35470 |
| Talladega | (256) 362-4175 | PO Box 737 Talladega, Alabama, 35161 |
| Tallapoosa | (256) 825-4266 | 125 N Broadnax Street, Room 126 Dadeville, Alabama, 36853 |
| Tuscaloosa | (205) 349-3870 | PO Box 20067 Tuscaloosa, Alabama, 35402 |
| Walker | (205) 384-7284 | PO Box 502 Jasper, Alabama, 35502 |
| Washington | (251) 847-2201 | PO Box 549 Chatom, Alabama, 36518 |
| Wilcox | (334) 682-4883 | PO Box 668 Camden, Alabama, 36726 |
| Winston | (205) 489-5219 | PO Box 27 Double Springs, Alabama, 35553 |
