When an estate owner passes away, the administrator or executor, commonly referred to as the personal representative, must act on behalf of the deceased to ensure financial safety throughout the settlement of their estate. In North Carolina, the clerk of superior court requires the personal representative to secure a probate bond in accordance with Chapter 28A, Article 8 of the General Statutes. Jet Insurance Company provides this bond to the administrator (appointed by court) or executor (named in the will) as a guarantee to the superior court that the personal representative will fulfill their duties without malicious intent.
PURCHASE EXECUTOR/ADMINISTRATOR BOND
Jet’s process to apply for an Administrator or Executor Bond is efficient, allowing the personal representative to begin closing the estate without delays. Have any questions? Give us a call at (855) 470-0877 and we will be happy to help.
The clerk of the superior court will determine the bond amount upon evaluation of the value of personal property. When determining the bond limit, the court will require that the bond amount for estates that are less than $100,000 must be equal to 125% of the estate’s assets. The bond amount for estates that are larger than $100,000 need only be 110% of the estate’s assets.
Jet charges a minimum of $85 per year for the North Carolina Administrator Bond or the North Carolina 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:
The clerk of the superior court will provide the administrator/executor with their required bond amount when the clerk evaluates the estate's assets based on the guidelines outlined above.
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.
For personal representatives, a bond is always required unless they fit into the following criteria from North Carolina General Statutes 28A-8-1:
Even with these exclusions, the clerk of superior court may still require the personal representative to secure a surety bond if they believe it necessary for the protection of the estate and its beneficiaries.
In addition to those excluded from the bond requirement, persons listed in Chapter 28A-4-2 of the North Carolina General Statutes are not qualified to serve as personal representatives
The State of North Carolina requires the clerk of superior court to regulate the Executor and Administrator Bond for personal representatives to ensure financial security of the estate and all beneficiaries. Duties of the personal representative include collection of assets, payment of claims, and proper disbursement of assets, which means the administrator or executor must be in close contact with all debtors, creditors, and heirs of the estate. The bond provides a course of action, supplied by the surety company, for anyone damaged financially by the personal representative’s actions. The harmed person(s) may file a claim against the surety bond for reimbursement.
Personal representatives, in accordance with General Statutes Chapter 28A-23-3, are entitled to a commission of no more than 5% of the receipts including the value of personal property received and expenditures made.
Acquiring the bond needed to be a personal representative in North Carolina is simple with Jet. After submitting the required information, Jet delivers a rate following a quick review. Everything can be completed online, including the payment. Click the button below to get started!
PURCHASE EXECUTOR/ADMINISTRATOR BOND
Some of the factors Jet considers when underwriting a personal representative bond:
Bonds are to remain active and on file with the clerk of superior court for the duration of the probate process. Once the estate is settled and final accounts have been filed and approved by the court, the clerk will release Jet of liability. The bond is then terminated by Jet, relieving the administrator or executor of future obligations.
Estates that are not settled within one year will require bond coverage to be extended if only purchased for a one-year term. In this case, Jet will notify the personal representative with plenty of time to provide payment for the extension of the bond term.
Failure to provide payment for the bond will result in Jet contacting the personal representative’s attorney. The attorney may provide payment for the personal representative, then holding the administrator or executor responsible for reimbursement. When no attorney is involved, or the attorney does not pay the bond premium, the court will schedule a hearing to require the personal representative to remit payment. Nonpayment ultimately results in the revocation of letters of administration and the personal representative’s authority will cease. The personal representative will then need to surrender all of the estate’s assets to their successor or the clerk of superior court. The clerk of court may appoint a new personal representative.
Bond premium is fully earned in the first year for the Executor and Administrator Bond, which means that no refund is available if the bond is cancelled within the first year. However, if a multi-year bond is purchased and cancelled early within the second or third year, Jet calculates the remaining time on the bond to be refunded to the personal representative. The court must release Jet (the Surety) of liability before the bond can be cancelled and a refund can be given to the administrator or executor.
The bond must be on file with the probate court for the entirety of the personal representative’s duties being completed.
Unless filing of final accounts has been extended by the clerk of superior court, administrators and executors are responsible for settling the estate in the event that occurs last out of the following:
Once all claims against the estate have been paid, the assets properly distributed, and the final account for settlement has been filed, the court will complete a review and order the discharge of the personal representative from future duties and liabilities of the estate.
The heirs, and the clerk of superior court, rely heavily on the administrator or executor to fulfill the crucial role of fiduciary for the estate. Simply put, to avoid a claim on the bond, the personal representative must complete their obligations according to the law, the will (if applicable), and with the best interest of the beneficiaries in mind. Complaints regarding failure to uphold duties may arise from the heirs if they feel administration is not being handled properly. Being diligent about keeping receipts and records of all transactions as the personal representative is essential.
According to General Statute 28A-8-6, any breach of the bond is grounds for the harmed individual(s) to file a civil suit which can end in a bond claim. Some of these breaches include:
Anyone financially harmed by the personal representative can file a civil suit; this includes the beneficiaries, collectors, debtors, and the clerk of superior court. The probate court will schedule a hearing and request supporting documentation from all parties and decide whether or not disciplinary action should be taken against the bond. The court has jurisdiction to revoke the letters of administration any time during this process.
After a civil suit has been filed and the court requires a payout from the bond necessary, Jet will review the court’s investigation and any additional documentation provided by the personal representative.
Jet’s review is an additional step in the investigation to ensure nothing was missed, but any valid claims will be paid to the claimant(s) within 30 days of receiving the court’s notice. Because claims are a result of personal representative misconduct or negligence, the administrator or executor is responsible for paying the claim back in the full amount.
Unless the will demands a bond is needed, each county probate court in North Carolina will make the determination if an Administrator or Executor Bond is necessary. The chart below lists contact information for each clerk of superior court.
County Courthouse | Phone Number | Mailing Address |
---|---|---|
Alamance | (336) 570-5200 | Alamance County Historical Courthouse 1 Court Square Graham, NC 27253 |
Alexander | (828) 635-3113 | Alexander County Courthouse PO Box 100 Taylorsville, NC 28681 |
Alleghany | (336) 372-3900 | Alleghany County Courthouse PO Box 61 Sparta, NC 28675 |
Ashe | (336) 219-1400 | Ashe County Courthouse 150 Government Circle, Suite 3100 Jefferson, NC 28640 |
Avery | (828) 737-6700 | Avery County Courthouse PO Box 115 Newland, NC 28657 |
Beaufort | (252) 940-4000 | Beaufort County Courthouse PO Box 1403 Washington, NC 27889 |
Bertie | (252) 794-6800 | Bertie County Courthouse PO Box 370 Windsor, NC 27983 |
Bladen | (910) 872-7200 | Bladen County Courthouse PO Box 2619 Elizabethtown, NC 28337 |
Brunswick | (910) 253-3900 | Brunswick County Courthouse 310 Government Center Drive NE, Unit 1 Bolivia, NC 28422 |
Buncombe | (828) 259-3400 | Buncombe County Courthouse 60 Court Plaza Asheville, NC 28801 |
Burke | (828) 433-3200 | Burke County Courthouse PO Box 796 Morganton, NC 28655 |
Cabarrus | (704) 262-5500 | Cabarrus County Courthouse PO Box 70 Concord, NC 28026 |
Caldwell | (828) 759-3503 | Caldwell County Courthouse PO Box 1376 Lenoir, NC 28645 |
Camden | (252) 336-4000 | Camden County Courthouse PO Box 219 Camden, NC 27921 |
Carteret | (252) 504-4400 | Carteret County Courthouse 300 Courthouse Square Beaufort, NC 28516 |
Caswell | (336) 459-4000 | Caswell County Courthouse PO Drawer 790 Yanceyville, NC 27379 |
Catawba | (828) 695-6100 | Catawba County Justice Center 100 Government Drive, Department A Newton, NC 28658 |
Chatham | (919) 545-3500 | Chatham County Courthouse PO Box 369 Pittsboro, NC 27312 |
Cherokee | (828) 835-7740 | Cherokee County Courthouse 75 Peachtree St Murphy, NC 28906 |
Chowan | (252) 368-5000 | Chowan County Courthouse PO Box 588 Edenton, NC 27932 |
Clay | (828) 389-2300 | Clay County Government Center 261 Courthouse Dr., Suite 1 Hayesville, NC 28904 |
Cleveland | (704) 476-7800 | Cleveland County Courthouse 100 Justice Place Shelby, NC 28150 |
Columbus | (910) 641-4400 | Columbus County Courthouse PO Box 1587 Whiteville, NC 28472 |
Craven | (252) 639-3000 | Craven County Courthouse PO Box 1187 New Bern, NC 28563 |
Cumberland | (910) 475-3000 | Judge E. Maurice Braswell Cumberland County Courthouse PO Box 363 Fayetteville, NC 28301 |
Currituck | (252) 232-6200 | Currituck County Courthouse PO Box 175 Currituck, NC 27929 |
Dare | (252) 475-5200 | Dare County Justice Center PO Box 1849 Manteo, NC 27954 |
Davidson | (336) 242-6701 | Davidson County Courthouse PO Box 1064 Lexington, NC 27293 |
Davie | (336) 936-3000 | Davie County Courthouse 140 South Main St Mocksville, NC 27028 |
Duplin | (910) 275-7000 | Duplin County Courthouse PO Box 189 Kenansville, NC 28349 |
Durham | (919) 808-3000 | Durham County Courthouse 510 South Dillard St Durham, NC 27701 |
Edgecombe | (252) 824-3200 | Edgecombe County Courthouse PO Drawer 9 Tarboro, NC 27886 |
Forsyth | (336) 779-6300 | Forsyth County Courthouse PO Box 20099 Winston Salem, NC 27120 |
Franklin | (919) 497-4200 | Franklin County Courthouse 102 S Main St. Louisburg, NC 27549 |
Gaston | (704) 852-3100 | Gaston County Courthouse 325 Dr. Martin Luther King Jr. Way, Suite 1004 Gastonia, NC 28052 |
Gates | (252) 357-1365 | Gates County Courthouse PO Box 31 Gatesville, NC 27938 |
Graham | (828) 474-7000 | Graham County Courthouse PO Box 1179 Robbinsville, NC 28771 |
Granville | (919) 690-4800 | Granville County Courthouse 101 Main St. Oxford, NC 27565 |
Greene | (252) 747-6200 | Greene County Courthouse PO Box 675 Snow Hill, NC 28580 |
Guilford | (336) 412-7300 | Guilford County Courthouse PO Box 3008 Greensboro, NC 27402 |
Halifax | (252) 593-3000 | Halifax County Courthouse PO Box 66 Halifax, NC 27839 |
Harnett | (910) 814-4600 | Harnett County Courthouse 301 W. Cornelius Harnett Blvd., Suite 100 Lillington, NC 27546 |
Haywood | (828) 454-6501 | Haywood County Courthouse 285 N Main St., Suite 1500 Waynesville, NC 28786 |
Henderson | (828) 694-4100 | Henderson County Courthouse 200 N Grove St., Suite 163 Hendersonville, NC 28792 |
Hertford | (252) 358-7100 | Hertford County Courthouse PO Box 86 Winton, NC 27986 |
Hoke | (910) 878-4100 | Hoke County Courthouse PO Drawer 1569 Raeford, NC 28376 |
Hyde | (252) 926-4700 | Hyde County Courthouse PO Box 337 Swan Quarter, NC 27885 |
Iredell | (704) 832-6600 | Iredell County Hall of Justice 226 Stockton St Statesville, NC 28677 |
Jackson | (828) 631-6400 | Jackson County Courthouse 401 Grindstaff Cove Rd Sylva, NC 28779 |
Johnston | (919) 209-5400 | Johnston County Courthouse PO Box 297 Smithfield, NC 27577 |
Jones | (252) 448-6220 | Jones County Courthouse PO Box 280 Trenton, NC 28585 |
Lee | (919) 718-6300 | Lee County Courthouse PO Box 4209 Sanford, NC 27331 |
Lenoir | (252) 520-5300 | Lenoir County Courthouse PO Box 68 Kinston, NC 28501 |
Lincoln | (704) 742-7800 | Lincoln County Courthouse PO Box 8 Lincolnton, NC 28093 |
McDowell | (828) 655-4100 | McDowell County Courthouse 21 S Main St Marion, NC 28752 |
Macon | (828) 349-7200 | Macon County Courthouse PO Box 288 Franklin, NC 28744 |
Madison | (828) 649-2200 | Madison County Courthouse PO Box 217 Marshall, NC 28753 |
Martin | (252) 809-5100 | Martin County Governmental Center PO Box 807 Williamston, NC 27892 |
Mecklenburg | (704) 686-0400 | Mecklenburg County Courthouse PO Box 37971 Charlotte, NC 28237-7971 |
Mitchell | (828) 688-5100 | Mitchell County Courthouse 328 Longview Dr Bakersville, NC 28705 |
Montgomery | (910) 571-3700 | Montgomery County Courthouse PO Box 527 Troy, NC 27371 |
Moore | (910) 722-5000 | Moore County Courts Facility Building PO Box 936 Carthage, NC 28327 |
Nash | (252) 220-3000 | Nash County Courthouse PO Box 759 Nashville, NC 27856 |
New Hanover | (910) 772-6600 | New Hanover County Courthouse PO Box 2023 Wilmington, NC 28402 |
Northampton | (252) 574-3100 | Northampton County Courthouse PO Box 217 Jackson, NC 27845 |
Onslow | (910) 478-3600 | Onslow County Courthouse 625 Court St Jacksonville, NC 28540 |
Orange | (919) 644-4500 | Orange County Courthouse 106 E Margaret Lane Hillsborough, NC 27278 |
Pamlico | (252) 745-6600 | Pamlico County Courthouse PO Box 38 Bayboro, NC 28515 |
Pasquotank | (252) 331-4600 | Pasquotank County Courthouse PO Box 449 Elizabeth City, NC 27907 |
Pender | (910) 663-3900 | Pender County Courthouse PO Box 310 Burgaw, NC 28425 |
Perquimans | (252) 404-5000 | Perquimans County Courthouse PO Box 33 Hertford, NC 27944 |
Person | (336) 503-5200 | Person County Courthouse 105 S Main St Roxboro, NC 27573 |
Pitt | (252) 695-7100 | Pitt County Courthouse PO Box 6067 Greenville, NC 27835 |
Polk | (828) 894-4900 | Polk County Courthouse PO Box 38 Columbus, NC 28722 |
Randolph | (336) 328-3000 | Randolph County Courthouse 176 East Salisbury St., Suite 201 Asheboro, NC 27203 |
Richmond | (910) 419-7400 | Richmond County Judicial Center 105 W Franklin St Rockingham, NC 28379 |
Robeson | (910) 671-3000 | Robeson County Courthouse PO Box 1084 Lumberton, NC 28359 |
Rockingham | (336) 634-6000 | Rockingham County Judicial Center PO Box 127 Wentworth, NC 27375 |
Rowan | (704) 797-3001 | Rowan County Courthouse 210 N Main St Salisbury, NC 28144 |
Rutherford | (828) 288-6100 | Rutherford County Courthouse 229 N. Main St., Suite 203 Rutherfordton, NC 28139 |
Sampson | (910) 596-6600 | Sampson County Courthouse 101 E. Main St Clinton, NC 28328 |
Scotland | (910) 266-4400 | Scotland County Courthouse PO Box 769 Laurinburg, NC 28353 |
Stanly | (704) 986-7000 | Stanly County Courthouse PO Box 668 Albemarle, NC 28002 |
Stokes | (336) 593-4400 | Stokes County Courthouse PO Box 250 Danbury, NC 27016 |
Surry | (336) 386-3700 | Surry County Courthouse PO Box 345 Dobson, NC 27017 |
Swain | (828) 488-7400 | Swain County Courthouse PO Box 1397 Bryson City, NC 28713 |
Transylvania | (828) 885-3000 | Transylvania County Courthouse 7 East Main St Brevard, NC 28712 |
Tyrrell | (252) 766-6510 | Tyrrell County Courthouse PO Box 406 Columbia, NC 27925 |
Union | (704) 698-3100 | Union County Judicial Center PO Box 5038 Monroe, NC 28112 |
Vance | (252) 430-5100 | Vance County Courthouse 156 Church St., Suite 101 Henderson, NC 27536 |
Wake | (919) 792-4000 | Wake County Courthouse PO Box 351 Raleigh, NC 27602 |
Warren | (252) 257-6300 | Warren County Courthouse PO Box 709 Warrenton, NC 27589 |
Washington | (252) 791-4000 | Washington County Courthouse PO Box 901 Plymouth, NC 27962 |
Watauga | (828) 268-6600 | Watauga County Courthouse 842 W King St., Suite 13 Boone, NC 28607 |
Wayne | (919) 722-6100 | Wayne County Courthouse 224 E. Walnut St., Room 230 Goldsboro, NC 2753 |
Wilkes | (336) 651-4400 | Wilkes County Courthouse 500 Courthouse Dr Wilkesboro, NC 28697 |
Wilson | (252) 206-3000 | Wilson County Courthouse PO Box 1608 Wilson, NC 27894 |
Yadkin | (336) 679-3600 | Yadkin County Courthouse PO Box 95 Yadkinville, NC 27055 |
Yancey | (828) 678-5700 | Yancey County Courthouse 110 Towne Square, Room 5 Burnsville, NC 28714 |