An executor bond guarantees proper administration & accounting for the winding up of an estate.
What is an executor bond?
An Executor Bond is a bond of security or a suretyship. It guarantees that the executor will provide proper administration and accounting for all funds and property during the winding up of the deceased’s estate.
Why do you need an executor bond?
During the winding up of the Estate it is the Executor’s role to protect the deceased’s assets, settle their debts, collect monies due, identify heirs and distribute their wealth in accordance with the deceased’s will.
Any errors made during this process are the responsibility of the Executor. For this reason the Executor is required by law to provide a surety to guarantee their proper administration and accounting for all funds and property of the Estate.
Frequently Asked Questions
How do the claims work?
The only party that may call up a Bond of Security is the Master of the High Court. As with all suretyships, should the Executor default then the Surety will be called up & the Insurer will make good any loss arising from the default.
How much does an Executor Bond cost?
Both the rate & the wording of the bond are set by the Master of the High Court. Currently the annual rate on Executor Bonds is 0,5% (excl. VAT) on the asset value of the estate.
Can premiums be paid monthly?
No, the Master of the High Court has set this as an annual rate. All premiums for Executor Bonds are paid annually. The bond renews annually at the same rate or a reduced rate, depending on whether assets have been sold.
How can I avoid a claim?
Claims can easily be avoided through:
- Diligent, honest & fair administration of the Estate.
- Delivering best practices in your industry.
- Keeping abreast of regulations and legislation.
What are the requirements for getting cover?
- An approved application for a facility/joint facility
- Death certificate
- Master’s Form J262 (Undertaking)
- Copy of your ID
- Copy of deceased’s ID
- Inventory of deceased’s assets
- Form J190 (Acceptance of Trust as Executor)
- Current Fidelity Fund Certificate & proof of active professional Indemnity Insurance, or details of the professional who will be assisting you with an undertaking to notify the insurer should their mandate be terminated.
Why Choose Us
With our comprehensive offering, we provide appropriate and affordable Surety Bonds for professionals in their respective fields.
As a professional, you need an insurance partner who understands your business risks. Our experienced risk professionals offer expert advice, friendly service and bonds at competitive rates.
How to Get Covered
Complete the short questionnaire and provide us with any relevant details regarding the bond you require.
One of our expert risk professionals will call you to discuss the cover available for you and provide you with any advice you might need.
We'll provide you with a simple, hasslefree quotation for your consideration.
Send us you quote acceptance form and we'll get your bond issued within 24 hours.
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