Oregon Administrator and Executor Bonds

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.

APPLY FOR EXECUTOR BOND

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. Have any questions? Give us a call at (855) 470-0877 and we will be happy to help.

Bond Amount and Cost of the Executor and Administrator Bond

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. 

Jet charges a minimum of $85 per year for the Oregon Conservator bond, with the price depending on the size of the bond. Our online bond process takes only minutes to complete providing you with an approved rate for immediate purchase. 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. Call us at (855) 470-0877 to find out how much your probate bond will cost.

Who Is Excluded from the Administrator or Executor Bond Requirement?

The administrator/executor is not required to secure a surety bond, pursuant to Oregon Statute ORS 113.105, in the following cases:

• The will specifies that no bond is required
• The personal representative is the sole inheritor
• The personal representative requests the requirement to be waived by the probate judge and provides descriptions of creditors of the estate
• A financial institution holds property in the estate, which can only be withdrawn by court order, and supplies the personal representative with written confirmation to supply to the court
• The personal representative is the Director of Oregon Health Authority, the Department of Veterans' Affairs, the State Treasurer, or an authorized person in accordance with ORS 113.085 or 113.086

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. 

How Does the Bond Get Filed With the Clerk of Court?

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.

How to Avoid Executor and Administrator Bond Claims

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:

• Delay in the collection of estate assets 
• Failure to submit money or property of the estate
• Not paying owed taxes
• Embezzlement
• Self-dealing
• Co-personal representative (as defined in ORS 114.415) acting wrongfully
• Any negligent action leading to estate losses

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.

Why Does the Personal Representative Need the Bond?