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California Administrator Bond
Estate administration – also known as “probate” – is the legal process of collecting the assets and property of someone who has passed away, paying off debts, and distributing those assets to the heirs. The Superior Court in the decedent’s county appoints an administrator or executor to handle these tasks for the estate in probate court.
California Probate Code 8480 requires most administrators to post a surety bond before being appointed. This bond serves as protection for the estate's beneficiaries and creditors, ensuring that the administrator performs their duties responsibly and according to law.
Have any questions? Give us a call at (855) 470-0877 and speak to a live California probate bond expert.
What is the Required Bond Amount?
California Probate Code 8482 states the bond amount should equal the value of the personal property in the estate plus any annual income. If the administrator plans to sell real property, the bond amount must include the value of that real estate before the sale.
The Superior Court may reduce the bond amount if the administrator deposits estate funds in a court-restricted account. The Superior Court overseeing the case will determine the required bond amount during the hearing on the petition and will set the bond amount on Form DE-140. If there are minimal assets, the court often sets a minimum bond amount of $20,000 or $30,000.
How Much Does a California Administrator Bond Cost?
The California Administrator Bond costs a minimum of $150 per year. Apply online in minutes or call one of our probate bond experts at (855) 470-0877 to find out exactly how much your bond will cost.
To determine how much the bond will cost, administrators and executors can follow the steps listed below:
- Determine the Required Bond Amount
The Superior Court sets the bond amount based on the value of the personal property in the estate plus any annual income. The bond amount must include the value of any real estate if the administrator plans to sell it. The required bond amount in California mainly depends on the type of authority the administrator needs, either Limited Authority or Full Authority under IAEA.
- Calculate the Total Cost
Jet Surety charges $150 per year for all administrator bonds up to $20,000 in size. For each additional $1,000 increase in the bond amount, the bond premium will increase by the corresponding amount outlined in the table below. See the chart below to calculate the price for larger bonds.
| Bond Amount | Additional Premium (per $1,000) | Bond Cost (1 year) |
|---|---|---|
| $0 - $20,000 | $150 flat rate | $150 |
| $20,001 - $60,000 | $6.00 | $150 - $390 |
| $60,001 - $200,000 | $5.00 | $390 - $1,090 |
| $200,001 - $500,000 | $3.75 | $1,090 - $2,215 |
| $500,001 - $1,500,000 | $2.50 | $2,215 - $4,715 |
| $1,500,000+ | $1.00 | $4,715+ |
Jet does not require credit checks for applicants with bond sizes under $25,000 or under $50,000 if the applicant has retained an attorney. California Probate Code 8486 allows administrators to charge the bond premium as an estate expense.
Call us at (855) 470-0877 for an estimate of how much your probate bond will cost.
What is the Process of Becoming an Administrator in California?
Step 1 – Hire an Attorney
Although not explicitly required, it is highly recommended that administrators hire an attorney to assist with probating an estate. Jet Surety provides free recommendations for lawyers in our Attorney Partner network.
Step 2 – Prepare the Required Documents
The Superior Court requires the following items to be completed before applying to become an administrator:
- Petition for Probate (Form DE-111)
- Signed consent waivers from the other estate heirs
- Decedent’s last will and testament (if applicable)
- Copy of death certificate
- A $435 filing fee (or fee waiver)
The petition must include basic information about the deceased person, the nominated administrator, and the estate’s assets and heirs. The petition must be filed where the decedent lived or owned property. Petitioners must also provide a formal notice (Form DE-121) to all estate heirs, creditors, and other interested parties that a hearing has been scheduled on the petition. For more information on how to file for probate in California, visit the California courts website here.
Step 3 – Attend the Hearing
Once all paperwork is filed, the petitioner must attend a hearing at the Superior Court, where the judge decides who to appoint as administrator. Petitioners must bring Form DE-140 to the hearing for the judge to sign and should state their requested bond amount. Once appointed, the administrator can bring Form DE-140 to their surety company to apply for their bond.
Step 4 – Purchase a Surety Bond
Unless otherwise exempt, personal representatives must purchase and maintain a probate surety bond (exemptions outlined below). Once the bond is filed with the court, the administrator will obtain their letters of administration.
What is the Purpose of a California Administrator Bond?
Administrators and executors are responsible for the management, preservation, and distribution of the deceased person’s estate. California Probate Code 8480 requires administrators to post a probate surety bond to ensure that the estate assets are managed in accordance with estate regulations and California law. If the fiduciary fails to fulfill their duties, the surety bond is a financial guarantee for any damaged interested party of the estate, such as an heir or creditor.
What are the Responsibilities of an Administrator in California?
Administrators in California have several key responsibilities in managing the probate process and settling the deceased person's estate. The primary duties are outlined in Division 7 of the California Probate Code and include the following:
- Gather and Inventory Assets: The administrator must collect all estate assets and file an Inventory and Appraisal (Form DE-160) with the court overseeing the case. The administrator must also contact a probate referee to value any non-cash assets, such as real estate or vehicles.
- Notify Creditors and Pay Debts: Administrators must provide formal notice to any estate creditors with the Notice of Administration to Creditors (form DE-157). If there is money to pay the estate's debts, the administrator must pay the debts from the estate before making any disbursements to the heirs.
- File Tax Returns: The decedent's final personal income tax return must be prepared. If the estate earned money (such as interest or profit from a sale), the administrator should submit a final estate tax return.
- Distribute Assets to Beneficiaries or Heirs: After settling all debts, taxes, and expenses, the administrator must distribute the remaining assets to the beneficiaries or heirs following the will's provisions or intestate succession under California law.
- Provide Accounting: The administrator must thoroughly document all financial transactions made on behalf of the estate and file an accounting report that comprehensively summarizes the estate's income, expenses, distributions, and all other financial activities. Courts usually require this report a year after appointment.
How is the Estate Distributed if There's No Will?
If the deceased person did not leave behind a will, the administrator must distribute assets according to intestate succession. We’ve researched how estate assets flow in these cases and provided a general overview of the distribution order below.
If the decedent is survived by:
- A spouse but no children: The spouse inherits everything
- Children but no spouse: The children inherit everything in equal parts
- A spouse and one child or grandchild: The spouse inherits all community property plus 1/2 of separate property and the children inherit the remainder
- A spouse and two or more children: The spouse inherits all community property plus 1/3 of separate property and the children inherit the remaining 2/3
- No children or spouse, surviving parents only: The parents receive the entire estate
- No children, spouse or parents; surviving siblings only: The siblings divide the net estate equally
Intestate succession is another example of why an effective estate plan is essential to control who receives property when one passes. We are not licensed attorneys, so we recommend consulting with a licensed estate or probate attorney when managing an estate.
When is a Bond Not Required in California?
According to California Probate Code 8481, the Superior Court may waive the surety bond requirement for administrators and executors in the following situations:
- If the will explicitly waives the bond requirement
- If all interested persons waive the bond by signing a Waiver of Bond
The court may still require a fiduciary bond for any estate administrator if they believe it necessary to protect the estate.
How Does the Application Process Work with Jet?
Jet’s application process is simple and fast - our goal is to get the fiduciary bonded as quickly as possible so they can focus on their obligations. All we need is the bond amount and basic information about the estate.
Once completed and submitted, you will receive your purchase price immediately, or a Jet underwriter will reach out for more information. Some of the factors Jet considers when underwriting a California probate bond application:
- If the applicant has ever committed a felony
- If there are disputes among the estate’s beneficiaries
- If the applicant has an attorney assisting with the estate
- Applicant’s credit history for bond limits over $25,000 if they have not retained an attorney, or $50,000 if they have retained an attorney
Applicants for bond limits over $50,000 must submit documentation from the court for review, such as a petition for appointment and the order from the court requiring the bond. If you have any questions about applying, please call our probate underwriters at (855) 470-0877.
How Do You File a California Probate Bond with the Superior Court?
Jet (the Surety) and the administrator must sign the original bond. Jet fills out the bond form, signs as the Surety, and sends the original bond to the administrator to sign and file the completed bond with the Superior Court. Jet will also send the administrator an electronic copy of their bond to keep in their files.
Important Terms to Know in California Probate
- Administrator: A person appointed by the court to manage the estate of a person who dies with no will. Also known as a administrator of an estate.
- Beneficiary: An individual who is legally entitled to a certain portion of a decedent’s estate when there is a will.
- Decedent: The individual who has passed away and left the estate.
- Estate: All real property and personal property owned by a decedent at the time of their death.
- Executor: A person nominated in the deceased individual’s will to administer their estate.
- Fiduciary: A person in control of or with influence over another’s property. In this case, it refers to both executors and administrators, as well as conservators in other cases.
- Heir: A person who inherits assets when a person passes away with no will.
- Inheritance Tax: A tax imposed on the property passed down to an heir of an estate. There is no inheritance tax in California.
- Intestate: If the decedent dies without a will, the estate is considered Intestate.
- Personal Property: Non-movable assets in an estate, including cash, stocks, jewelry, personal effects, vehicles, etc.
- Personal Representative: In California, this is a catch-all term for the person in charge of settling the estate. The definition includes any executor named in a will.
- Probate: The legal process through which the representative of a deceased person’s estate is appointed by the Superior Court to distribute property, pay all expenses and debts, and distribute net assets to the deceased person’s heirs.
- Probate Bond: A type of surety bond guarantees compensation for interested parties in a probate case if the person securing the bond (the fiduciary) fails to fulfill their duties or causes any financial harm to beneficiaries of the estate. Also known as fiduciary or estate bonds.
- Surety Bond: A type of insurance required for California executors and administrators that guarantees they will faithfully perform their duties to settle the estate.
- Testate: If the decedent dies with a will and the executor is named in the will, the estate is considered Testate.
- Trust: A legal document and arrangement where property is given to someone to be held for the benefit of another person.
- Will: A legal document that states a person’s wishes about how their property will be distributed after death.
How Do You Renew the California Administrator Bond?
Jet will notify the administrator well before the probate bond renewal date to ensure timely payment. Jet will inform the attorney (when applicable) and the Superior Court if payment is not made. If the renewal remains unpaid, the court will set a hearing upon being notified of failing to maintain the bond.
How Long Do You Need the California Administrator Bond?
The Superior Court can release the probate bond once the administrator has paid all debts, distributed all assets, and provided an approved final accounting. Once the estate is settled, the administrator simply needs to email documentation to [email protected] so that we can cancel the bond and issue any applicable refund due back to the administrator. All premiums paid after the first year are subject to a prorated refund for the unused term.
How Does an Administrator or Executor Avoid Probate Bond Claims?
Administrators have a critical role in settling an estate, and any unethical action could financially damage the estate’s heirs, creditors, or the State of California. Anyone appointed as an administrator must adhere to all estate regulations and ensure they fulfill all responsibilities outlined in Division 7 of the California Probate Code.
Some examples of potential actions that could cause a claim:
- Committing negligence, embezzlement, or fraud
- Buying or selling any part of the estate without authorization
- Misusing or misappropriation of estate assets, such as mixing estate and personal funds
- Failing to distribute estate assets to its legal beneficiaries
- Nonpayment of any estate taxes and debts
An heir or creditor to the estate with proven financial damages caused by the administrator may file a claim against their fiduciary bond. To avoid a bond claim, we highly recommend that administrators retain the services of an attorney to assist in managing the case.
What Happens if a Claim Is Filed on the Probate Bond?
Upon receiving notice of a claim on the bond, Jet has 30 days to pay the claim or ask for additional time to review it. Jet works tirelessly to protect our clients against faulty claims, so even if the Superior Court requests a bond payout, we assess all documentation provided before paying out the claim. However, if a claim is valid and Jet pays the claimant, the administrator must pay Jet back as the representative is ultimately liable for their own actions.
California Superior Court Locations
Administrators and executors can find a list of all the county superior courts in the state of California here, along with their addresses and contact information. Fiduciaries should also contact the Self-Help Center for their specific court for guidance in getting started.
