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Why Estate Bonds?

Why Estate Bonds?

Death is a natural part of life. Many people plan their estate and final wishes before they pass away. But sometimes, someone passes away unexpectedly without prior planning. Sometimes, estate planning has already taken place but an estate bond may still be required by the courts. Sometimes, an estate asset is accidentally left out of the estate planning process. When this occurs, it is subject to additional probate. And sometimes, a living family member is unable to manage their owns finances and affairs. In this situation, the individual requires a loved one, or trusted individual, to assist them in a legal capacity. These are some of the many situations why an estate bond would be required. Dustin SanVido addresses these situations in his expert blog article.

What is an Estate Bond?

An Estate Bond is also known as a Fiduciary Bond or Probate Bond. An Estate Bond is a guarantee the individual undertaking this endeavour will deliver on their obligations to the courts and to the deceased’s affairs.

When do I Need an Estate Administration Bond?

When someone passes away intestate, meaning, without a will or the will is missing, then the courts require an Estate Administration Bond. An estate administration bond is placed and held by the courts. It guarantees the nominated individual administers the deceased’s legal and financial affairs, under the rule of law. This can include the satisfaction of all known creditors, the payment of any outstanding taxes, and the collection and disbursement of all residues to the remaining beneficiaries of the family. Once again, these as set forth by the laws of the governing body from which the deceased resided.

The Administration Bond protects the estate in the event an administrator mishandles the estate while guaranteeing those intended to receive money or property can claim the full value of their inheritance.

Why do I need an Executor or Foreign Executor Bond?

In some cases, an individual has passed away testate. Testate means they planned their will and estate in advance but the courts still require an Executor Bond. A Foreign Executor Bond is required if the executor is in another province or country, or the named executor(s) have predeceased the will.

The Executor Bond helps protect the beneficiaries against any probable misrepresentation, fraud, theft, negligence, or errors performed by the executor of the estate.

What is a Waiver of Probate Bond?

Waiver of Probate is required if the deceased misplaced or forgot to include a financial asset in the will. stock certificate, a debenture, or a similar investment instrument are the most common. The financial institution, (the party for which the instrument was issued by and serviced) requires either the instrument to move through probate, or be released upon submission of a special bond. This special bond waives the right of probate to be applied to that instrument.

The Waiver of Probate Bond enables the financial institution to re-issue instruments to the name of the estate executor. This means the estate can be liquidated and distributed amongst the beneficiaries.

What is the Purpose of a Guardianship Bond?

Guardianship Bonds are required if a loved one is legally incapable of managing and looking after their personal finances and affairs. In this situation, a trusted individual may be required by the courts. The courts would require a PGT (Public Guardian Trustee) to be appointed the guardian of the incapable’s finances. This usually occurs when they are no longer physically or mentally able to take care of matters on their own and require assistance. Certain circumstances oblige courts to select a “Nominee” to deal with the funds of a person who cannot deal with his or her own finances. For example, a minor youngster, an elderly individual, or an incapacitated individual or when there is no living power of attorney.

The Guardianship Bond is used to legally protect the person needing assistance from possible neglect or theft by a person helping them with their finances.

About Dustin SanVido

As a true specialized estate professional, Dustin SanVido works with clients across Canada and internationally. He also facilitates fiduciary bonding needs for individuals and law professionals in the private sector. Utilizing a network of close market partnerships, Dustin’s team is often able to find clients the best and most affordable bonding. This also applies to businesses and clients that think outside the traditional surety box.

Dustin’s expertise lies in navigating the surety world of estate instruments. He has extensive knowledge and experience working with his Lawyer affiliates and Executor/Administrator/Guardianship clients. His knowledge of surety bond products in the Estate (Fiduciary) class is second to none. Dustin should be the first person contacted when the need for an estate bond arises.

Dustin holds a Registered Insurance Broker of Ontario (RIBO) and Canadian Accredited Insurance Broker (CAIB) license and designation, respectively. He is in the final steps to achieve his Associateship in Canadian Surety Bonding (ACSB) professional designation through the Surety Association of Canada (SAC).

Dustin is currently pursuing his accreditation as a Certified Executor Advisor via the Canadian Institute of Certified Executor Advisors. This will allow Dustin to further his expertise and specificity in a unique class of instruments.

Contact Dustin SanVido

Estate Bond expert Dustin SanVido stands outside the Province of Ontario Courthouse in Toronto

Commercial Lines Specialist
Estate Bonds
Expert Blogger
D: 647-557-3594
T: 1 – 877 – 213 – 4545

About Ai Insurance Organization Inc.

Ai Insurance Organization Inc. has over 20 years of national experience and expertise. We have the breadth of claims inventory to anticipate client needs. We also have the capacity to write project-specific placements for firms of all sizes. Ai Insurance Organization Inc. is a leading Canadian commercial insurance organization. We are licensed across Canada to assist clients in securing the best possible price and coverage. Learn more about us by visiting This article is part of our Expert Blog Series. To read more of our Blogs, please click here.

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