What is a probate bond?

A probate bond is a type of surety bond used in the probate process in South Carolina. The purpose of the bond is to protect the fiduciary, beneficiaries, and creditors of the estate from fraud, waste, or mismanagement by the fiduciary. This bond is required in order to receive Letters of Administration or Letters of Executorship from a court of probate. When the probate bond is in place, the surety company providing the bond guarantees that if any of the above events occur, they will compensate any offended parties. When a probate bond is issued, the surety company will check the background of the fiduciary and their financial standings to ensure that they are a responsible party. If approved, the surety company will pay out on a claim if the above-stated events occur, and it is up to the fiduciary to repay the surety company for the claim. Probate bonds in South Carolina are usually required for a period of two years prior to the estate being closed, and must be renewed annually if the probate process takes longer than two years. Depending on the amount of the estate, the cost of the bond can range from $100 to $25,000. The cost of the bond is normally paid by the estate and will not be returned unless the terms of the bond are broken.

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