Upon the death of a person with an estate, an executor or administrator (personal representative) is granted the authority to act on behalf of the deceased for the financial security of their estate. The personal representative will be required by the clerk of the probate court, and in accordance with Oregon Revised Statutes (ORS) Chapter 113, to furnish an Executor or Administrator Probate Surety Bond.
Both the Executor Bond or Administrator Bond are types of Probate Bonds that provide financial security for all heirs in the event the personal representative makes a significant error, either purposely or accidentally, in settling the estate.
As Probate and Court Bond experts, Jet’s process is seamless from start to finish. Unlike agents and brokers who have to submit lengthy applications to various insurance companies for approval, Jet’s online bond application allows for a quick bond purchase.
To determine the Executor or Administrator Bond amount, the court looks into the value of the estate’s assets, taxes, debts, and the projected income during administration of the estate. The total bonding amount must be sufficient to cover all estate’s beneficiaries.
The cost of the bond is calculated as a small percentage of the bond amount, also known as the bond limit. With Jet the prices can start as low as $100 for low limit bonds and will vary as bond limit and risk increases.
With larger bond amounts, generally over $250,000, a credit check of the personal representative must be completed and a copy of the will may be required. Jet’s online bond process takes only minutes to complete providing you with an approved rate for immediate purchase.
The administrator/executor is not required to secure a surety bond, pursuant to Oregon Statute ORS 113.105, in the following cases:
The court may still request that the personal representative hold a bond in any of the above cases if the court has reason to believe a bond is necessary for the welfare of the estate’s inheritors.
The county probate court where the estate is domiciled determines how the bond form must be filed and can vary among the jurisdictions. Some allow Jet to file the bond directly, meaning the process is completely online! Other courts require the executor or administrator to mail in the original bond form which Jet will sign and send to your preferred address. Some agents charge shipping fees for this, but Jet ships free of charge.
Personal representatives fulfill a crucial role for heirs by acting as a fiduciary for the estate. Being a fiduciary is the highest legal duty of one party to another and means that the fiduciary must act ethically and in the best interest of the other party. In general, to avoid claims on the bond, a personal administrator must uphold this duty. Failure to do so could result in quarrels and complaints against the personal representative, and ultimately a claim against the bond. In addition to acting as fiduciary, keeping records of all paperwork is important to document your activity should an heir dispute any of your actions.
Oregon Revised Statute 116.063 lists some specific liabilities of the personal representative in dealing with the estate, in addition to a catch-all that goes back to the discussion on fiduciary duty. A bond claim can occur for losses due to:
The court can file surety bond claims, along with the successors, creditors, and heirs of the estate. Claims are dealt with in the probate court that the estate is filed in. The administrator/executor and the party making the claim will have the opportunity to present supporting documents. The probate court judge will decide if action should be brought against the bond.
Oregon circuit courts require the Executor and Administrator Bond for the protection of a deceased person’s estate and beneficiaries. The administrator/executor duties include dealing with the financial assets of the estate, ensuring heirs are made aware of and receive their share in the estate, and contacting debtors of the estate for money owed. The surety bond provides a course of action for those damaged by the personal representative’s failure to fulfill duties. The damaged party can file a claim on the bond for financial restitution, which will be paid if the claim is proved valid.
The personal representative is entitled to be compensated for their services and reimbursed for any fees incurred, pursuant to ORS 116.173. The administrator/executor would receive payment from the estate.
Jet’s application is simple and takes just minutes to complete. Click the button below and provide the requested information about the estate and Jet will take care of the rest!
The bond must be kept active until the court can justify that all beneficiaries have received their inheritance from the estate. Upon settlement of the estate, including evidence of sufficient asset distribution, Jet receives a release of liability from the court. The bond will then be terminated therefore relieving you of your responsibility as administrator or executor.
For bonds purchased on an annual term the bond will need to be renewed if the estate is not settled before the end of the term. Jet will notify the personal representatives with adequate time to provide payment and extend the term of the bond, allowing for the necessary time to administer to the estate.
If for any reason Jet does not receive renewal payment the personal representative’s attorney will be notified. Sometimes the attorney is able to pay for the bond for which the personal representative will be responsible to pay back. If there is no attorney involved, or if the attorney cannot provide payment, the court will be informed. The court will set a hearing to hold the personal representative liable for the bond payment. Failure to pay for the surety bond at this point will often result in removal of the personal representative. If removal occurs, a new administrator will be appointed who will be responsible for making the premium payment on the bond.
The first year of the bond premium for administrators and executors is fully earned meaning that if a one-year bond is purchased and cancelled early, there is no refund available. However, at Jet we offer multi-year bond terms and if the bond needs to be cancelled early within that second or third year Jet calculates a prorated refund. Once the court releases Jet of liability, Jet will refund the appropriate amount to the administrator or executor.
Each probate court in Oregon will individually make the determination if a surety bond is required for the estate. Unless of course the will demands, then the bond is needed. Below is a list of the contact information for each County Court for your reference.
|Baker||541-523-6303||1995 3rd St, Suite 200
Baker City, OR 97814
|Benton||541-243-7844||PO Box 1870
Corvallis, OR 97339-1870
|807 Main Street, Room 104
Oregon City, OR 97045
|Clatsop||503-325-8555||PO Box 835
Astoria, OR 97103
|Columbia||503-397-2327||230 Strand Street
Saint Helens, OR 97051
|Coos||541-447-6541||300 NE 3rd Street, Room 21 Prineville, OR 97754|
|Crook||541-247-4511||250 N Baxter Street Coquille, OR 97423|
Ext. 2080 or 2070
|1100 NW Bond Street
Bend, OR 97703
Ext. 2080 or 2070
|1100 NW Bond Street
Bend, OR 97703
|1036 SE Douglas Avenue
Roseburg, OR 97470
|PO Box 622
Condon, OR 97823
|Grant||541-575-1438||PO Box 159
Canyon City, OR 97820
|Harney||541-573-5207||450 N. Buena Vista #16
Burns, OR 97720
|Hood River||541-386-3535||309 State Street
Hood River, OR 97031
|Jackson||541-776-7171||100 S. Oakdale Avenue
Medford, OR 97501
|Jefferson||541-475-3317||129 SW E Street, Suite 101
Madras, OR 97741
|500 NW 6th Street
Grants Pass, OR 97526
|Klamath||541-883-5503||316 Main Street
Klamath Falls, OR 97601
|Lake||541-947-6051||513 Center Street Lakeview, OR 97630|
|125 East 8th Avenue
Eugene, OR 97401
|Lincoln||541-265-4236||PO Box 100
Newport, OR 97365
|Linn||541-967-3845||PO Box 1749
Albany, OR 97321
|251 B. Street W, Box 3
Vale, OR 97918
|CountyClerk@malheurco.org or email@example.com|
|Marion||503-588-5141||P.O. Box 12869
Salem, OR 97309
|Morrow||541-676-5264||PO Box 609
Heppner, OR 97836
|1021 SW Fourth Avenue
Portland, OR 97204
|Polk||503-623-3154||850 Main Street
Dallas, OR 97338
|PO Box 402
Moro, OR 97039
|Tillamook||503-842-2596||201 Laurel Avenue
Tillamook, OR 97141
Ext. 3231 Hermiston:
|216 SE Fourth Street
Pendleton, OR 97801
|Union||541-962-9500||1105 K Avenue
La Grande, OR 97850
|Wallowa||541-426-4991||101 S River Street, Room 204
Enterprise, OR 97828
|PO Box 1400
The Dalles, OR 97058
Option #3, 3, 5
|150 N 1st Avenue MS37
Hillsboro, OR 97124
|Wheeler||541-763-2541||PO Box 308
Fossil, OR 97830
|Yamhill||503-434-7530||535 NE 5th Street
McMinnville, OR 97128