3. Post an estate administration bond
Question and answer
How do I apply to be an estate trustee for someone who died without naming one?When you apply to be an , you may have to arrange for an administration bond.
A bond is an amount of money that a person or company promises to pay if you do not handle the property in the estate correctly. If that happens, the bond money is paid to the estate's and creditors. A bond protects them from any mistakes you make.
The amount of the bond is usually double the value of the estate.
Get a surety
To arrange for a bond, you have to find an insurance company or a person who's willing to pay the bond if needed. They are called your surety.
The insurance company must be licensed to provide surety and fidelity insurance in Ontario.
If your surety is a person, they're called your personal surety. They must be an adult living in Ontario who has enough to pay the amount of the bond. They cannot be a lawyer or court registrar.
For estates valued at $100,000 or less, you need one personal surety. For larger estates, you need 2 personal sureties.
A judge decides if your surety and the amount of the bond are suitable.
Depending on who your surety is, include one of these forms with your application for estate trustee:
- 74L Bond – insurance or guarantee company
- 74M bond – personal sureties which your surety swears or promises before a commissioner for affidavits.
No bond
You can ask a judge for permission not to post a bond. But the process is complicated.
An estates lawyer can tell you if you need a bond. And can help you ask for a court order that says you do not need one.
Estate trustee insurance
Estate trustees have personal liability. This means that if you make a mistake dealing with the estate, you can be sued by a beneficiary or creditor.
You might be able to get estate trustee insurance.
So, a bond protects creditors and beneficiaries, but estate trustee insurance can protect you if you make an honest mistake or get sued.
An estates lawyer can help you get insurance.