Notary Bond Application:
X
New Jersey Personal Representative Bond
When an individual is appointed as a personal representative (also known as an executor or administrator) of an estate in New Jersey, they may be required to obtain a surety bond. According to New Jersey Statute 3B:15-1, the bond is required to secure the performance of the duties of the fiduciary. This bond serves as protection for the estate's beneficiaries and creditors, ensuring that the personal representative fulfills their duties responsibly and honestly.
Have any questions? Give us a call at (855) 470-0877 and speak to a live New Jersey probate bond expert.
Terms to Know when it Comes to New Jersey Personal Representative Bonds
- Probate: The legal process through which the administrator or executor distributes all assets and pays all debts of a decedent’s estate under the supervision of the court.
- Settlement: The act of distributing the assets and settling the debts of the estate.
- Fiduciary: The person in charge of settling the estate. The definition includes all executors and personal representatives of an estate.
- Petition: A verified application submitted to the court requesting appointment as a fiduciary of the estate.
- Decedent: The individual who has passed away and left the estate.
- Beneficiary: Any person entitled to any part or all of an estate. This is also referred to as an heir.
- Creditor: Any person having a claim against a decedent's estate.
- Testate: If the decedent dies with a will, the estate is considered Testate. Typically, individuals name their desired executor in the will.
- Intestate: If the decedent dies without a will, the estate is considered Intestate, and the personal representative must petition the court for appointment.
- Surety Bond: A type of insurance required for New Jersey fiduciaries that guarantees they will faithfully fulfill their duties to settle the estate.
What is the Required Bond Amount?
New Jersey Statute 3B:15-1 states that the bond amount for personal representatives must equal the full value of the estate that is under the fiduciary's control. The surrogate's court overseeing your case will set the specific bond amount for each case and has the authority to increase or decrease the bond amount upon request of an interested party or at the court’s discretion.
How Much Does a New Jersey Personal Representative Bond Cost?
Jet charges a minimum price of $85 per year for the New Jersey Personal Representative Bond, with the specific cost varying depending on the bond amount. See the chart below to calculate the price for larger bonds. To determine how much a bond will cost, you can follow the steps listed below:
- Determine the Required Bond Amount
New Jersey Statute 3B:15-1 states that the bond amount should be set at the value of the estate and the extent of the fiduciary’s authority.
- Calculate the Total Cost
Administrator/Executor bonds up to $11,000 in size cost just $85 per year. For each additional $1,000 increase, the bond premium will increase by the corresponding amount outlined in the table below. Apply online in minutes or call one of our probate bond experts at (855) 470-0877 to determine exactly how much your estate bond will cost.
| Bond Amount | Additional Premium (per $1,000) | Bond Cost (1 year) |
|---|---|---|
| $0 - $11,000 | $85 flat rate | $85 |
| $11,001 - $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 - $1,000,000 | $1.00 | $1,563 - $2,063 |
| $1,000,000+ | $0.50 | $2,063+ |
We provide discounted tiered pricing that reduces the percentage rate for larger estate bond amounts. Fiduciaries can also save money by purchasing their fiduciary bond for multiple years in advance. Personal Representatives must pay for the bond before their appointment, but they can petition the court for reimbursement from the decedent’s estate when filing their accounting according to New Jersey Statute 3B:15-8.
What is the Process of Becoming a Personal Representative in New Jersey?
Step 1 – Hire an Attorney
Although not explicitly required, we recommend that personal representatives hire an attorney to assist with the probate process.
Step 2 – Determine Priority
The surrogate's court grants priority to individuals to serve as a personal representative in the following order:
- Persons nominated in the Will
- The surviving spouse
- Any other heir
- Any qualified person if no heir applies within 40 days of the decedent’s death
Step 3 – File for Administration with the Court
Personal representatives must contact the county surrogate with jurisdiction over the deceased individual’s estate. The surrogate will walk the personal representative through the appointment process, provide them with all required forms, and answer any questions they may have. Any interested person may object to the personal representative’s appointment or the validity of the deceased individual’s will. If an objection occurs, the case will be heard in the county’s superior court.
*Estates worth less than $20,000 and with no surviving spouse or domestic partner need not undergo a formal probate process and can instead be administered via an affidavit.
Step 4 – Purchase a Surety Bond
Unless otherwise exempt, personal representatives must purchase and maintain a surety bond.
When is a Bond Required in New Jersey?
New Jersey requires personal representatives to purchase a surety bond in the following situations:
- If they are not nominated in the will
- If they are being appointed in place of an individual nominated in the will
- When their office includes any form of administration
- Not including administration ad litem (for a lawsuit) or if the personal representative is the deceased individual’s surviving spouse and is entitled to the entire estate
- If they do not live in New Jersey
- Unless the will waives the bond requirement
- If they are an additional or substitute personal representative
- If the deceased individual is not a resident of New Jersey
- If they move out of state
- If the will requires one
- If any interested person believes the deceased individual’s property to be unsafe, insecure, or in danger of being wasted and petitions the court to require one
To paraphrase New Jersey Statute 3B:1-2, a personal representative is a court-appointed fiduciary responsible for administering a deceased individual’s estate. Personal representatives are referred to as executors if the deceased individual nominated them in their will (testate), and administrators if they were not nominated if no will exists (intestate).
What are the Responsibilities of a Personal Representative in New Jersey?
Administrators and executors of an estate have a legal duty to act faithfully towards the estate and not put their interests ahead of that duty. This duty includes three main responsibilities:
- Asset Management: Properly managing and safeguarding the estate's assets until distribution to beneficiaries.
- Debt Settlement: Paying the estate's legitimate debts, taxes, and expenses.
- Accounting: Keeping accurate records of all transactions and providing an account of their actions to the court and beneficiaries.
- Distribution: Distributing the estate's assets to the rightful beneficiaries according to the will or New Jersey intestacy laws.
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 responsibilities. All we need is the bond amount and basic information about the estate.
Here are some of the factors Jet considers when underwriting an administrator/executor bond:
- A soft credit check of the applicant
- Attorney involvement in the case
- Documentation from the court including the filed petition and court order for the bond
Applicant’s criminal background
Disputes among the estate’s beneficiaries
Whether or not there is any ongoing business in the estate
How Do You File an Administrator/Executor Bond with the Court?
When you purchase the surety bond, you will immediately receive a digital version of your bond with a receipt. Afterward, Jet will complete the bond form, attach our raised seal to the original copy, and mail it to you. You must simply sign and deliver the original copy to the surrogate’s court overseeing your case.
Depending on the county, the surrogate's court may provide the administrator with their own custom bond form. Be sure to check if the surrogate's court has a custom bond form before applying with surety companies.
How Do You Renew the New Jersey Administrator/Executor Bond?
Jet will notify the administrator well in advance of the renewal date to ensure timely renewal payment. Jet will notify the attorney (when applicable) and the court if you do not pay for the renewal. If an attorney is involved, they may decide to pay the renewal bond premium, but the fiduciary must reimburse them. Upon being notified of failing to maintain the bond, the court will set a hearing.
How Long Do You Need the Bond?
The court will release the bond once the administrator has paid all debts, distributed all assets, and provided a final accounting approved by the court. The administrator must submit an annual accounting to the court if the estate settlement extends beyond a year.
After obtaining the release, the administrator 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 administrator.
What Actions of an Administrator/Executor Can Lead to Surety Bond Claims?
Administrators have a critical role in the settlement of an estate and are relied on by the heirs, creditors, and the court to fulfill these obligations. Complaints regarding failure to uphold duties may arise from the heirs and creditors if they feel the administrator has not settled the estate properly. Your diligence in keeping receipts and records of all transactions 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 administrators 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 administrator 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 actions.
Surrogate's Court Locations in New Jersey
Below is a list of all the surrogate courts located in the State of New Jersey, as well as their addresses and contact information.
| County Courthouse | Phone | Mailing Address | |
|---|---|---|---|
| Atlantic County | (609) 343-2341 | 5911 Main Street Mays Landing NJ 08330 | [email protected] |
| Bergen County | (201) 336-6700 | Two Bergen County Plaza, Suite 5000 Hackensack, NJ 07601 | [email protected] |
| Burlington County | (609) 265-5005 | 50 Rancocas Road, 1st Floor Mt. Holly, NJ 08060 | [email protected] |
| Camden County | (856) 225-7282 | 101 S 5th Street Camden, NJ 08103 | [email protected] |
| Cape May County | (609) 463-6666 | 9 N. Main Street Cape May Court House, NJ 08210 | [email protected] |
| Cumberland County | (856) 453-4800 | 60 W. Broad Street, Suite A111 Bridgeton, NJ 08302 | [email protected] |
| Essex County | (973) 621-4901 | 495 Dr. Martin Luther King, Jr. Blvd Newark, NJ 07102 | [email protected] |
| Gloucester County | (856) 853-3282 | 17 N. Broad Street Woodbury, NJ 08096 | [email protected] |
| Hudson County | (201) 748-4400 | 595 Newark Avenue Jersey City, NJ 07306 | [email protected] |
| Hunterdon County | (908) 788-1156 | 65 Park Avenue Flemington, NJ 08822 | [email protected] |
| Mercer County | (609) 989-6331 | 175 South Broad Street, Room 420 Trenton, NJ 08650 | [email protected] |
| Middlesex County | (732) 745-3055 | 75 Bayard Street New Brunswick, NJ 08901 | |
| Monmouth County | (732) 431-7330 | One East Main Street Freehold, NJ 07728 | [email protected] |
| Morris County | (845) 431-1770 | 10 Court Street, 5th Floor Morristown, NJ 07960 | [email protected] |
| Ocean County | (732) 929-2011 | 118 Washington Street Toms River, NJ 08754 | |
| Passaic County | (973) 881-4760 | 71 Hamilton Street, Room 101 Paterson, NJ 07505 | [email protected] |
| Salem County | (856) 935-7510 | 174 East Broadway Salem, NJ 08079 | Surrogate@salemcountynj.gov |
| Somerset County | (908) 231-7003 | 20 Grove Street, P.O. Box 3000 Somerville, NJ 08876 | [email protected] |
| Sussex County | (973) 579-0920 | 3 High Street, Suite 1 Newton, NJ 07860 | [email protected] |
| Union County | (908) 527-4280 | 2 Broad Street Elizabeth, NJ 07207 | [email protected] |
| Warren County | (908) 475-6223 | 323 Front Street, Suite #1 Belvidere, NJ 07823 | [email protected] |
