Administration Bonds

June 1, 2012 Hull & Hull LLP Executors and Trustees Tags: , , , 0 Comments

Applying for an administration bond can be a trying experience. Guarantee or bonding companies require detailed information to process the application, and delays may result from follow-up inquiries. Below is some information that may assist.

Amount – double the amount of the assets as attested to in the application for probate.   Various circumstances have been considered sufficient to justify a reduction in the amount of the bond. However, where infant beneficiaries are involved the usual bond is normally required.

When Needed – where an application for a certificate of appointment without a will is made; where the deceased died with a will, but did not name an executor; where the named executor does not reside in Ontario; where the applicant is a succeeding estate trustee without a will.

When Not Needed – when, on an intestacy, the surviving spouse applies for a certificate of appointment, the value of the estate does not exceed the preferential share and an affidavit is filed setting out the debts of the estate;when a trust corporation is appointed as estate trustee; when you get a court order dispensing with the bond requirement. 

Who Can be a Surety -specifically prohibited are registrars and solicitors, as well as minors.    If the surety is an individual he or she must be resident in Ontario.

Requirements –there are no specific legal requirements. Full disclosure of estate assets and liabilities, as well as personal liabilities, are generally considered to be a minimum requirement. 

Lifespan – the bond generally remains in the custody of the Court until cancelled (e.g. upon the passing of their final accounts or where an executor produces evidence to the satisfaction of the judge that the debts of the deceased have been paid and the residue distributed.

Thanks for reading and have a great weekend!

Natalia Angelini – Click here for more information on Natalia Angelini

p.s. for a more fulsome discussion on this topic, I refer you to my paper The Tricky Business of Administration Bonds

Leave a reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE TO OUR BLOG

Enter your email address to subscribe to this blog and receive notifications of new posts by email.
 

CONNECT WITH US

CATEGORIES

ARCHIVES

TWITTER WIDGET