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Ai Insurance Organization

Administration Bond

Required when no will exists or will not be located. The bond covers dedicated execution of the obligation of the trustee named in a will – testamentary trustee or spreads enduring execution of obligation by a delegated trustee in bankruptcy matters.

In short, the purpose of an Administration Bond is to protect the creditors and lawful heirs of the estate.

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What is a Administration Bond?

An (Estate) administration bond is commonly issued when an administrator is appointed to handle the estate of somebody who died without a valid will (intestate). The bond protects the estate in the event an administrator mishandles the estate while guaranteeing those intended to receive money or property will be able to claim the full value of their inheritance.

The bond does not serve as protection for the administrator.

An administrator may also be appointed by the probate court if the named executor declines to take on the responsibility. The administrator will need to pay creditors, monthly bills, and discharge any taxes owed by the deceased while it is determined how the rest of the estate will be handled.

Administrator and executor bonds are often confused. The major difference between these two bonds is that the executor bond is issued where a valid will is present.

Administration bond may be requested for the following reasons:

Eligibility Criteria

Administration with will annexed

Required when executor named in the will or those appointed are deceased or refuse to act as administrator(s) of the estate.

Administration de bonis non

Required when the named executor in the will dies, resigns, or is removed before completing the estate.

Administration pendent lite

Bond is required when the will is being contested.

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Frequently Asked Questions

You need one of these bonds if you are the administrator named to care for the estate of a deceased individual.

The cost of the bond will depend on the total value of the estate and the financial/credit profile of a nominee (principal).

An applicant will have to pay an annual premium. This premium is usually a set percentage of the total bond amount.

As an administrator, you will need to be working with an estate attorney. The bond issuer will ask for their information on the application.

You will need to provide your employment and income history. If the bond issuer finds you to be financially unsound, they may request your lawyer to sign or have a co-signer be included on the application.

You will need to provide the initial payment for the bond at the time of approval.

If you have an administrator bond issued in a different city or province, it will not carry over for the new bond.

If you live in a different province from where the deceased lived, you will need to apply for a foreign administrator bond.

If you are currently working on a different estate, you will need to provide that information when applying for the new bond.

A claim can be filed against the bond and against the administrator if they fail to follow the clear wishes of the estate or mishandle the funds that result in a loss of value of the estate. 


By taking out the bond, the administrator is making a promise to execute their duties as administrator faithfully and responsibly.

You can apply for the bond via a bonding company (Surety) with the assistance of a broker at Ai Insurance Organization.

Ai Insurance Organization is recognized in all provinces across Canada to issue Administration Bonds.

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Estate Bond Program for Lawyers

If you are an estate lawyer and would like to refer your clients, learn more about our program below:

Ai provides value not only to our clients but to our trusted partners in private, public, and legal practices. We are committed to offering our customers and their representation the highest possible standards of service the bonding industry has to offer.

We believe in organically growing our network of business affiliates to assist and provide financial surety to lawyers across Canada and abroad.

Contact us by filling out the form below if your client requires an estate bond, if you have any questions about the estate bonding process, or if you would like to become a centre of influence for your clients.