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Illinois Administrator Bond
Estate administration, also known as probate, is the legal process of gathering a deceased person's assets, paying any outstanding debts, and distributing the remaining property to the heirs. The Circuit Court in the county where the person lived appoints an executor or administrator to manage these responsibilities. Jet Insurance Company is licensed to issue probate bonds throughout the state of Illinois, including Cook County.
Section 12-2 of the Illinois Probate Act of 1975 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 Illinois probate bond expert.
What is the Required Bond Amount?
Section 12-5 of the Illinois Probate Act of 1975 requires that the bond amount be equal to 150% of the value of the estate’s personal property. However, if the executor or administrator is serving as an individual surety, the bond must be equal to twice the value of the personal property.
The required bond amount may increase if the fiduciary has control over any real property belonging to the estate. Conversely, the bond amount may be reduced by the value of any personal property held by a company authorized to accept and execute trusts in Illinois.
How Much Does an Illinois Administrator Bond Cost?
The Illinois Administrator Bond costs a minimum of just $85 per year, with the specific cost varying depending on the bond amount. 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 can follow the steps listed below:
- Determine the Required Bond Amount
In Illinois, the circuit court sets the bond amount based on the estate’s personal property value, potential heir disputes, and the executor’s or administrator’s creditworthiness. By law, the bond is usually 150% of the estate’s personal property value, with exceptions for individual sureties or when real estate is involved.
- Calculate the Total Cost
Jet Surety charges as low as $85 per year for all administrator bonds up to $17,000 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 - $17,000 | $85 flat rate | $85 - $100 |
| $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+ |
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. The cost of the bond is a legitimate estate expense and, with court approval, can typically be reimbursed from estate funds.
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 Illinois?
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 Circuit Court requires the following items to be completed before applying to become an administrator:
- Oath and Bond of Representative
- Petition for Letters of Administration
- Decedent’s last will and testament (if applicable)
- Copy of death certificate
- Inventory of Assets
The petition should include, along with the information required in Section 9-4 (c) through (h), the facts and details that support the presumption. It also needs to list the decedent’s name and last known mailing address, and if known, the names and addresses of anyone who currently has control or possession of the decedent’s property. For more information on how to file for probate in Illinois, visit the Illinois courts website here.
Step 3 – 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.
Step 4 – Notify Heirs and Interested Parties and Attend the Probate Hearing
Once your petition is filed, the court requires that all heirs and other interested parties be notified. This step ensures that everyone with a potential stake in the estate is aware of the proceedings. Notification is typically done by certified mail, and in some cases, a notice must also be published in a local newspaper. After these notifications are complete, you'll attend a probate court hearing where a judge will review your petition and confirm that proper notice has been given. During the hearing, the judge may also consider any objections from family members or others who wish to serve as the estate administrator. These factors will be taken into account before the court makes a final decision.
What is the Purpose of an Illinois Administrator Bond?
The bond serves as a safeguard to ensure that beneficiaries and creditors are protected if the executor or administrator fails to follow the rules outlined in Section 12-2 of the Illinois Probate Act of 1975. It provides financial protection in cases of fraud or mismanagement of estate assets. In essence, the bond acts as insurance to cover any losses resulting from a breach of fiduciary duty by the executor or administrator.
What are the Responsibilities of an Administrator in Illinois?
Administrators in Illinois have several key responsibilities in managing the probate process and settling the deceased person's estate. The primary duties are outlined in Article XIX of the Illinois Probate Act of 1975 and include the following:
- Gather and Inventory Assets: Executors and administrators must file an estate inventory within 60 days and update it yearly if the estate remains open; failure to do so can lead to removal for neglect of duties.
- Notify Creditors and Pay Debts: Administrators must provide formal notice to any estate creditors with the Notice of Administration to Creditors. 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 Illinois 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 descendants: The spouse inherits everything
- Children but no spouse: The children inherit everything in equal parts
- A spouse and descendants: The spouse inherits 1/2 of the intestate property and the children inherit the remainder
- 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 Illinois?
Pursuant to 755 ILCS 5/12-4 of the Illinois Probate Code, the Circuit Court may waive the surety bond requirement for executors and administrators under the following circumstances:
- If the will explicitly waives the bond requirement
- The court has no reason to suspect misconduct
- If all the beneficiaries agree in writing to waive the requirement
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 Illinois 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 Illinois Probate Bond with the Circuit 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 Circuit Court. Jet will also send the administrator an electronic copy of their bond to keep in their files.
Important Terms to Know in Illinois Probate
- Administrator: A person appointed by the court to manage the estate of a person who dies with no will. Also known as an 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.
- Intestate: If the decedent dies without a will, the estate is considered Intestate.
- Personal Property: Liquid and non-movable assets in an estate, including cash, stocks, jewelry, personal effects, vehicles, etc.
- Personal Representative: In Illinois, 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 Circuit 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 bond.
- Surety Bond: A type of insurance required for Illinois 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 Illinois 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 Circuit 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 Do You Close an Estate in Illinois?
Before an estate can be officially closed, the executor must settle all debts and taxes, distribute remaining assets to beneficiaries, and prepare a final accounting showing how the estate was managed. A final report is then filed with the court along with receipts from beneficiaries. Once the court approves the report, the estate can be formally closed. (755 ILCS 5/) Probate Act of 1975.
How Long Do You Need the Illinois Administrator Bond?
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 Illinois. Anyone appointed as an administrator must adhere to all estate regulations and ensure they fulfill all responsibilities outlined in Chapter 755 of the Illinois 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 Circuit 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.
Illinois Circuit Court Locations
Administrators and executors can find a list of all the county circuit courts in the state of Illinois 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.
