What Is an Executor Bond — and When Does the Court Require One?

Most people have never heard of an executor bond until a court tells them they need one — and then have no idea where to get it. Here's what it is, when it applies, and exactly how to get one.

What an executor bond actually is

An executor bond (also called an estate, fiduciary, or surety bond) is an insurance-style guarantee that you'll carry out your duties honestly. If you were to mismanage or misappropriate the estate, the bond company would compensate the beneficiaries or creditors — then come after you. In short, it protects everyone but you, and you typically pay for it from the estate.

Why courts require it

The court's job is to protect beneficiaries and creditors who can't watch over your shoulder. A bond is its safety net — most relevant when there's no will, when the executor lives out of province or state, or when beneficiaries are minors or can't consent.

When the bond is waived

You can often avoid a bond when:

• The will explicitly waives the bond requirement (well-drafted wills usually do)
• All adult beneficiaries agree to waive it, in writing
• The estate is small or the court otherwise excuses it

If you're an executor named in a will, check the will first — the waiver is often already there.

What it costs

A bond isn't a one-time fee; it's a premium, usually a small percentage of the bond amount (the bond amount is set by the court, typically near the value of the estate's personal property). Premiums commonly run roughly 0.5%–1% per year of the bond amount for applicants with reasonable credit — so a $500,000 bond might cost a few thousand dollars a year. Credit history affects the rate because the surety is underwriting your reliability.

How to actually get one — step by step

1. Get the required bond amount from the court — it's stated in the appointment paperwork.
2. Contact a surety bond broker (not a regular insurance agent — you want one who writes court/fiduciary bonds). Foxglove's directory lists brokers who handle executor bonds, a niche that's otherwise hard to find.
3. Provide what the underwriter needs: the court documents, the bond amount, basic financials, and consent to a credit check.
4. Receive the bond, file it with the court, and keep proof.

A broker can often turn this around in a few business days, so it rarely needs to hold up your appointment if you start early.

Jurisdictions where it commonly comes up

Bonds appear most often in estates without a will, with out-of-jurisdiction executors, or in places like California and British Columbia where courts require them absent a waiver. Your jurisdiction guide will flag whether to expect one.

Foxglove is a guide, not a law firm or insurer. General information, not legal or financial advice; bond rules and rates vary. We can help you find a surety bond broker who handles executor bonds.