Does an executor have to post a bond?

In Maryland, an executor does not have to post a bond in order to be named on a will. However, the executor may be required to obtain a surety bond before the estate is distributed. A surety bond is an insurance policy that provides compensation to the estate’s beneficiaries in the event that the executor breaches their fiduciary duty and fails to pay any debts or taxes. The executor pays a premium for the bond, and the surety company, such as an insurance company, pays out the expenses incurred by the executor. The Maryland Probate Court may require an executor to obtain a surety bond if there is reason to believe that the executor will mishandle the estate. Reasons could include the executor being inexperienced in probate law, or if the estate is particularly valuable or complex. In addition, the court may require an executor to obtain a bond if there are multiple executors, to ensure each executor is held individually responsible. The court may set the amount of the surety bond based on the size of the estate. Generally, if the estate is worth less than $50,000, the bond must be the full value of the estate. However, if the estate is worth more than $50,000, the bond must be at least two times the value of the estate. The court may also require the executor to obtain a larger bond if they deem it necessary.

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