Notary Bond Application:
X
Louisiana Executor and Administrator Bonds
Probate, also known as succession in Louisiana, is the legal process after a person passes away, ensuring their assets are distributed to the rightful heirs and any outstanding debts or taxes are paid. The person that handles this process is called an executor or administrator.
In Louisiana, the Code of Civil Procedure (CCP) 3159 requires all executors and administrators of an estate to be appointed by a court and swear an oath before assuming their fiduciary duties. This requirement exists so executors and administrators do not mismanage the estate’s assets. To provide financial protection to the estate, the probate judge will require certain executors and all administrators to obtain a surety bond.
Have any questions? Give us a call at (855) 470-0877 and speak to a live Louisiana probate bond expert.
Terms to Know when it Comes to Louisiana Personal Representative Bonds
- Probate: The legal process through which the representative of a deceased person’s estate distributes all assets and pays all debts under the supervision of the court. This is also referred to as succession in Louisiana.
- Settlement: This is the act of distributing the assets and settling the debts of the estate
- Decedent: The individual that has passed away and left the estate.
- Testate: If the decedent dies with a will, the estate is considered Testate and the executor should be named.
- Intestate: If the decedent dies without a will, the estate is considered Intestate and the administrator will petition the court for appointment.
- Fiduciary: A person who is put in the position of control or influence over another’s property. In this case, it refers to both executors and administrators.
- Surety Bond: A type of insurance required for Louisiana executors and administrators that guarantees they will faithfully fulfill their duties to settle the estate.
What is the Required Bond Amount?
According to the Louisiana Code of Civil Procedure 3151, the bond amount must equal 125% of the estate’s total value. However, the court may reduce the required amount if the executor or administrator can prove the required amount is far more than what is needed to protect the interests of the estate’s beneficiaries and creditors.
How Much Does a Louisiana Personal Representative Bond Cost?
The bond cost depends entirely on the bond amount needed for the estate. The executor or administrator will pay only a fraction of that bond amount.
To determine how much the bond will cost, the fiduciary can follow the steps listed below:
- Determine the Required Bond Amount
The probate judge or county clerk determines the bond amount based on the total amount of the estate, including any real estate, that the fiduciary has to oversee.
- Calculate the Total Cost
Administrator and executor bonds up to $20,000 cost $150 per year. For each additional $1,000 increase in the bond amount, 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 - $20,000 | $150 flat rate | $150 |
| $20,001 - $60,000 | $5.00 | $150 - $350 |
| $60,001 - $200,000 | $4.00 | $350 - $910 |
| $200,001 - $500,000 | $3.00 | $910 - $1,810 |
| $500,001 - $1,500,000 | $2.00 | $1,810 - $3,810 |
| $1,500,000+ | $1.00 | $3,810+ |
As demonstrated in the table above, there is a tiered rate calculation for probate bonds. For example, a $50,000 bond costs $300 per year, while a $300,000 bond costs $1,210 per year. Call us at (855) 470-0877 to find out how much your executor or administrator bond will cost.
What is the Process of Becoming an Executor or Administrator in Louisiana?
Step 1 – Meet the Qualifications
The following individuals are not eligible to serve as personal representatives:
- Those under 18 years of age
- Those deemed mentally incompetent
- Convicted felons
- Non-residents of Louisiana without a resident agent for process service
- Corporations unauthorized to act as executors or administrators
- Those with actions displaying bad moral character
Step 2 – Determine Priority
The court determines priority for serving as the executor of the estate as follows:
- Persons nominated in the will have priority
- Surviving spouse
- Children and grandchildren
- Parents
- Siblings
- Grandparents
- Aunts and uncles
- Any other extended family
- The most qualified among the creditors of the estate or a co-owner of immovable property with the deceased individual
Step 3 – Hire an Attorney
Although not explicitly required, we recommend that fiduciaries hire an attorney to assist with the probate process.
Step 4 – Determine the Succession Type
Louisiana has four distinct succession (probate) types, as outlined below:
- Small Succession: For estates with a relatively low value, Louisiana provides a simplified probate procedure known as the "small succession" or "small succession affidavit" process. This procedure applies when the total value of the assets subject to succession is $125,000 or less. The small succession procedure allows for a faster and less costly probate process by eliminating the need for a formal court-supervised
administration. Instead, the executor or surviving family members can file an affidavit with the court, providing the necessary information and requesting the transfer of assets. - Regular Succession: In regular succession, the executor or administrator must obtain approval from the court before distributing or selling the estate’s property. This process is required for estates that are ineligible for independent succession.
- Independent Succession: Louisiana allows for independent estate administration, simplifying and expediting the probate process. With independent administration, the executor can handle most aspects of the probate without obtaining court approval for every action. This streamlined approach facilitates a more efficient probate process and reduces the burden on the courts. However, it is worth mentioning that independent administration must be expressly authorized in the deceased person's will or requested by the executor and approved by the court.
- Succession without Administration: No executor or administrator needs to be appointed, and the court may distribute the estate’s assets if all heirs are competent and petition the court to do so. The estate must be relatively debt-free to qualify for succession without administration.
Step 5 - Contact the Court
Executors and administrators must contact the district court with jurisdiction over the deceased individual’s estate. A representative of the court will walk the executor or administrator through the appointment process, provide them with all required forms, and answer any questions they may have.
Step 6 – Purchase a Surety Bond
Unless exempt (see below), executors and administrators must obtain and maintain a surety bond.
What are the Responsibilities of a Personal Representative in Louisiana?
The executor or administrator in Louisiana has several key responsibilities in managing the probate process and settling the deceased person's estate. The primary duties include:
- Gather and Inventory Assets: The executor or administrator must locate and collect all assets of the deceased person's estate. This includes real estate, bank accounts, investments, personal property, and any other valuable possessions. They must prepare an inventory of these assets, documenting their values and descriptions.
- Notify Creditors and Pay Debts: It is the responsibility of the executor or administrator to identify and notify all creditors of the deceased person's passing. They must provide proper notice and a specific timeframe for creditors to submit their claims against the estate. The executor or administrator then reviews and verifies these claims and pays off valid debts using the estate's assets.
- File Tax Returns: The executor or administrator must file the necessary tax returns on behalf of the deceased person and the estate. This includes the final individual income tax return of the deceased, any estate tax returns, and potentially other tax filings, depending on the circumstances. They are responsible for ensuring accurate reporting and timely payment of any tax obligations.
- Distribute Assets to Beneficiaries or Heirs: Once all debts, taxes, and expenses have been paid, the executor or administrator oversees the distribution of the remaining assets to the beneficiaries or heirs according to the provisions of the will or the laws of intestate succession in Louisiana. They must ensure that the distribution is done accurately and in accordance with the applicable legal requirements.
- Provide an Accounting: The executor or administrator is required to keep detailed records of all financial transactions related to the estate. They must prepare an accounting that provides a comprehensive overview of the estate's income, expenses, distributions, and any other financial activities. This accounting may need to be presented to the court and provided to interested parties, such as beneficiaries or heirs, upon request.
What is the Purpose of a Louisiana Personal Representative Bond?
Due to the responsibilities listed in the prior section, Louisiana requires fiduciaries to purchase a surety bond as a prerequisite to being appointed as a fiduciary over an estate’s assets. The bond ensures that the estate’s beneficiaries and creditors will receive compensation for financial harm if the personal representative fails to abide by state regulations. Specifically, the bond protects beneficiaries and creditors if the personal representative engages in fraud or mismanages the estate’s assets by violating their fiduciary duties.
Do all Estates in Louisiana Require a Bond?
Executors are only required to purchase a bond in the following situations:
- If the will explicitly requires a bond
- If an heir or the surviving spouse petitions the court to require one
- If a creditor of the estate petitions the court to require one
However, according to Louisiana statute CCP 3151, all administrators must furnish a bond in the amount 125% of the estate. Provisional administrators and testamentary executors must also provide a bond according to Louisiana CCP 3152 and 3153.
How Does the Application Process Work With Jet?
Jet’s application process is unlike any other - our goal is to get the personal representative bonded as quickly as possible to allow them to focus on their fiduciary obligations. All we need is the bond amount and basic information about the estate. Our application allows the personal representatives to select where to send the bond.
Here are some of the factors Jet considers when underwriting a personal representative bond:
- 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 will need to provide documentation from the court for review
- Applicants criminal background
- Disputes among the estate’s beneficiaries
- Whether or not there is any ongoing business in the estate
- Whether or not the applicant owes any money to the estate
How Do You File a Personal Representative Bond with the Court?
Jet (the Surety) and the personal representative must sign the original bond. Jet fills out the bond form, signs as the Surety, and sends the original bond to the representative to sign and file the completed bond with the probate court. Jet will also send the representative an electronic copy of their bond for reference.
How Do You Renew the Louisiana Executor or Administrator Bond?
Jet will notify the fiduciary well in advance of the renewal date to ensure timely renewal payment. Jet will inform the attorney (when applicable) and the court if you do not make your payment. If an attorney is involved, they may decide to pay the renewal bond premium, but the fiduciary must reimburse them. The court will set a hearing upon being notified of the failure to maintain the bond.
How Long Do You Need the Bond?
The court will release the bond once the fiduciary has paid all debts, distributed all assets, and provided a final accounting approved by the court. If the estate settlement extends beyond a year, the personal representative must submit an annual accounting to the court. After obtaining the release, the personal representative simply needs to email a copy to [email protected] so that we can cancel the bond and issue any applicable refund due back to the personal representative.
What Actions of a Fiduciary Can Lead to Surety Bond Claims?
Executors and administrators have a critical role in the settlement of an estate and are relied on by the heirs, creditors, and the circuit court to fulfill these obligations. Complaints regarding failure to uphold duties may arise from the heirs and creditors if they feel the personal representative has not settled the estate properly. Your diligence in keeping receipts and records of all transactions as the personal representative is essential.
Some examples of potential actions that could cause a claim:
- Lack of proper accounting and detailed records
- Improper disbursement of assets
- Nonpayment of taxes/debts
- Embezzlement
What Happens if a Claim Is Filed on the Probate Bond?
Upon receiving court 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, which means that even if the court has requested a bond payout, we assess all documentation provided by the court and the fiduciary before paying out the claim. However, if a claim is valid and Jet pays the claimant, the executor or administrator must pay Jet back as the ficuciary is ultimately liable for their actions.
Civil District Court Locations in Louisiana
Below is a list of all the civil district courts located in the State of Louisiana, as well as their addresses and contact information.
| County Court | Phone Number | Address |
|---|---|---|
| Acadia Parish | (337) 788-8881 | 500 N. Parkerson Ave Crowley, LA 70527 |
| Allen Parish | (337) 636-4351 | 400 W 6th Ave Oberlin, LA 70655 |
| Ascension Parish | (225) 621-8500 | 607 East Worthey St., Third Floor Gonzales, LA 70737 |
| Assumption Parish | (985) 369-6653 | 4809 Hwy 1 Napoleonville, LA 70390 |
| Avoyelles Parish | (318) 253-7523 | 312 North Main Street Marksville, LA 71351 |
| Beauregard Parish | (337) 463-7993 | 200 West Second Street DeRidder, LA 70634 |
| Bienville Parish | (318) 263-7408 | 100 Courthouse Drive, Ste 2200 Arcadia, LA 71001 |
| Bossier Parish | (318) 965-2336 | 204 Burt Boulevard Benton, LA 71006 |
| Caddo Parish | (318) 226-6776 | 501 Texas Street, Room 103 Shreveport, LA 7101 |
| Calcasieu Parish | (337) 721-3100 | 1001 Lakeshore Drive Lake Charles, LA 70601 |
| Caldwell Parish | (318) 649-7410 | 201 Main Street Columbia, LA 71418 |
| Cameron Parish | (337) 775-5649 | 119 Smith Circle Cameron, LA 70631 |
| Catahoula Parish | (318) 336-5526 | 4001 Carter St Ste 9 Vidalia, LA 71373 |
| Clairborne Parish | (318) 927-4862 | 511 West Main Street Homer, LA 71040 |
| Concordia Parish | (318) 336-4204 | 4001 Carter St Room 5 Vidalia, LA 71373 |
| DeSoto Parish | (318) 872-3788 | 101 Texas Street Mansfield, LA 71052 |
| East Baton Rouge Parish | (225) 389-4700 | 300 North Boulevard Baton Rouge, LA 70801 |
| East Carroll Parish | (318) 559-2388 | 400 First Street Lake Providence, LA 71254 |
| East Faliciana Parish | (225) 683-4800 | 12220 St. Helena St. Clinton, LA 70722 |
| Evangeline Parish | (337) 363-5671 | 200 Court Street, Ste 104 Ville Platte, LA 70586 |
| Franklin Parish | (318) 435-5133 | 6550 Main Street Winnsboro, LA 71295 |
| Grant Parish | (318) 627-3244 | 200 Main St Colfax, LA 71417 |
| Iberia Parish | (337) 369-4410 | 300 Iberia Street New Iberia, LA 70560 |
| Iberville Parish | (225) 687-5230 | 58050 Meriam St. Plaquemine, LA 70764 |
| Jackson Parish | (318) 259-4112 | 500 East Court Ave, Rm 201 Jonesboro, LA 71251 |
| Jefferson Davis Parish | (337) 824-3506 | 300 North State Street Jennings, LA 70546 |
| Jefferson Parish | (504) 364-3998 | 200 DERBIGNY STREET Gretna, LA 70053 |
| Lafayette Parish | (337) 291-6400 | 800 S. Buchanan St. LaFayette, LA 70501 |
| Lafourche Parish | (985) 447-5550 | 303 West Third Street Thibodaux, LA 70302 |
| LaSalle Parish | (318) 992-2002 | 1050 Courthouse Street, Room 4 Jena, LA 71342 |
| Lincoln Parish | (318) 251-5121 | 100 West Texas Avenue, 3rd Floor Ruston, LA 71270 |
| Livingston Parish | (225) 686-7461 | 20300 Government Street Livingston, LA 70754 |
| Madison Parish | (318) 574-2712 | 100 North Cedar Street Tallulah, LA 71282 |
| Morehouse Parish | (318) 281-3343 | 100 East Madison Street Bastrop, LA 71220 |
| Natchitoches Parish | (318) 352-2034 | 200 Church Street Natchitoches, LA 71457 |
| Orleans Parish | (504) 407-0000 | 421 Loyola Avenue New Orleans, LA 70112 |
| Ouachita Parish | (318) 327-1444 | 300 St John Street Monroe, LA 71201 |
| Plaquemines Parish | (504) 392-6690 | 18055 Highway 15 Pointe a la Hache, LA 70082 |
| Pointe Coupee Parish | (225) 638-5532 | 201 E Main Street New Roads, LA 70760 |
| Rapides Parish | (318) 443-6893 | 701 Murray Street, Suite 501 Alexandria, LA 71301 |
| Red River Parish | (318) 932-6741 | 615 East Carroll Street Coushatta, LA 71019 |
| Richland Parish | (318) 728-4171 | 708 Julia Street Rayville, LA 71269 |
| Sabine Parish | (318) 256-6223 | 400 South Capital, Room 102 Many, LA 71449 |
| St. Bernard Parish | (504) 271-3434 | 1101 W. St. Bernard Hwy. Chalmette, LA 70043 |
| St. Charles Parish | (985) 783-5000 | 15045 River Road Hahnville, LA 70057 |
| St. Helena Parish | (225) 222-6492 | 369 Sitman Street Greensburg, LA 70441 |
| St. James Parish | (225) 562-2270 | 5800 LA Hwy 44, 2nd Floor Convent, LA 70723 |
| St. John the Baptist Parish | (985) 497-3331 | 2393 Highway 18 Edgard, LA 70049 |
| St. Landry Parish | (337) 942-5606 | 118 South Court Street, Ste 207 Opelousas, LA 70570 |
| St. Martin Parish | (337) 394-2210 | 415 S. Main St. St. Martinville, LA 70502 |
| St. Mary Parish | (337) 828-4100 | 500 Main St Franklin, LA 70538 |
| St. Tammany Parish | (985) 809-8700 | 701 N Columbia Street Covington, LA 70433 |
| Tangipahoa Parish | (985) 748-9445 | 110 North Bay Street Amite, LA 70422 |
| Tensas Parish | (318) 766-3233 | 201 Hancock Street St. Joseph, LA 71366 |
| Terrebonne Parish | (985) 580-8102 | 7856 Main Street Houma, LA 70360 |
| Union Parish | (318) 368-9734 | 100 East Bayou, Suite 202 Farmerville, LA 71241 |
| Vermilion Parish | (337) 898-1992 | 100 North State St. Abbeville, LA 70510 |
| Vernon Parish | (337) 239-2147 | 215 S. 4th Street Leesville, LA 71446 |
| Washington Parish | (985) 839-4663 | 908 Washington St Franklinton, LA 70438 |
| Webster Parish | (318) 371-0366 | 410 Main Street Minden, LA 71055 |
| West Baton Rouge Parish | (225) 336-2419 | 850 8th Street Port Allen, LA 70767 |
| West Carroll Parish | (318) 428-3281 | 305 East Main Street, Room 101 Oak Grove, LA 71263 |
| West Faliciana Parish | (225) 635-4363 | 4785 Prosperity Street St. Francisville, LA 70775 |
| Winn Parish | (318) 628-4596 | 119 W Main Street Winnfield, LA 71483 |
