How to Avoid the Requirement of Posting an Administrator’s Bond in NJ
Nov 7, 2022 | Written by: Share|
New Jersey law requires that a person applying to be appointed to serve as the personal representative (executor or administrator) of an estate post an Administrator’s Bond to collaterally secure that person’s proper administration of the estate. In other words, such person must provide financial assurances to the court that he or she will properly administer the assets of the estate, pay the required debts of the estate, and then distribute the net estate assets to the proper beneficiaries.
Such person must apply to a bonding company to obtain an Administrator’s Bond. Financial disclosure must be made, and a balance sheet of assets and debts must be provided. The typical Administrator’s Bond premium is in the $2,000.00 range.
The foregoing process can be avoided simply by executing a will containing a provision that waives the requirement for the Executor to post an Administrator’s Bond. This is typically done if the person signing the will is designating a spouse or close family member to administer his or her estate. In many instances, the cost for having the estate plan completed is less than what the cost of the Administrator’s Bond premium will be.
At Gebhardt & Kiefer, we have a dedicated group of experienced lawyers and paraprofessionals who are available to address your questions and concerns regarding probate matters, trust and estate administration issues, as well as estate and gift tax planning strategies. Please contact us to schedule a consultation.