Executors and Administrators: Serious Legal Obligations

When preparing to take on the duties of executor or administrator on behalf of a deceased loved one, it’s wise to be mindful that this is not an informal responsibility or favor. Serving as an executor or administrator comes with serious legal obligations, detailed by state probate laws and protocols. Missteps have consequences. Read on for an overview of the legal obligations involved in settling a deceased person’s estate. 

Entrusted By Probate Court

When someone dies, everything they own—all assets—are referred to as their estate. Typically, for example, a deceased person’s estate might include a home and all of its contents, a car, and bank and investment accounts. Only probate courts (referred to as surrogate’s courts in some states) have the power to entrust someone with managing the assets of an estate. If the deceased created a will, upon validation of it, the court will typically appoint the executor designated in it. Absent a will, the court designates an administrator. Note that some states alternatively use the term “personal representative” as an umbrella term for the person designated to close out the affairs of the estate. 

Regardless of the terminology differences across states, the duty of resolving the debts of the deceased before distributing assets, either in accordance with the will or the laws of intestacy, is a legally binding obligation, as the National Estate Planning Authority explains:

• • The scope of authority for both roles is bounded by the probate court’s letters testamentary (issued to an executor) or letters of administration (issued to an administrator). These documents are the operative instruments that grant legal authority to act on behalf of the estate — to collect assets, pay debts, file tax returns, and distribute property to beneficiaries under applicable law. Without court-issued letters, neither an executor nor an administrator has enforceable authority over estate assets held by third parties such as financial institutions.
  • Both roles fall squarely within the broader category of fiduciary duty in estate planning, meaning the representative must act solely in the interest of the estate and its beneficiaries, not in their own interest.

Attorneys at Walkers further explain that the fiduciary obligations of administrators and executors require them to “exercise care and skill in administering the estate,” and “take steps to preserve the assets of the estate.” At Whiteford Law in Virginia, attorneys observe that “common missteps executors and administrators make include failing to secure and inventory assets, allowing property to fall into disrepair, imprudent investments, ignoring insurance or tax obligations, or commingling estate funds with personal funds.” Additional oversights that can trip up executors and administrators include communication and reporting failures, as well as neglecting to properly address claims made against the estate:

• • • Reporting on even simple estates can be a challenging process. Executors and administrators may face claims for breach of fiduciary duty if they refuse to provide reasonable information, ignore beneficiary inquiries, or fail to deliver required accountings.
    • The executor/administrator is charged to pay the debts of the estate and to pursue claims of the estate. Debts may include funeral expenses, final medical bills, credit card bills, or other debts of the decedent….Unreasonable delays in administering the estate, missing key deadlines, or allowing claims and penalties to accrue through inaction may constitute a breach of the executor/administrator’s fiduciary duty.
    • Paying barred or unverified claims, overpaying expenses, or distributing assets before satisfying taxes and higher-priority debts can expose the estate and the fiduciary.
    • Executors/administrators that violate their fiduciary duty may be subject to harsh consequences for doing so…Courts may remove a fiduciary and appoint a successor.

Executor and Administrator Bonds Explained

Given the seriousness of their responsibilities, probate and surrogate courts frequently require executors and administrators to obtain a fiduciary bond. Depending on the state and jurisdiction, fiduciary bonds are referred to specifically as executor, administrator, probate, surrogate or estate bonds. The purpose of executor, administrator and other fiduciary bonds is to provide a financial guarantee that the person serving as executor or administrator will carry out their duties in accordance with the law. An executor or administrator bond is a three party legal contract involving:

• • • • The Principal: The court-appointed executor or administrator, whose fiduciary actions and duties are guaranteed by the bond.
      • The Obligee: The probate court requiring the bond on behalf of the estate and beneficiaries. 
      • The Surety: The financial or insurance company that issues the bond and provides the financial guarantee.

An executor or administrator bond acts as a financial safeguard against fiduciary misconduct, negligence, or fraud. Here’s how it works: 

• • • 1. The Guarantee: The Surety vets the Principal and pledges to the court (Obligee) that if the Principal fails their fiduciary duties and causes financial harm to the estate, the Surety will compensate the estate/beneficiaries up to the bond’s face value.
      2. Indemnification: If a claim is paid out due to the Principal’s breach of duty, the Surety retains the legal right to seek full reimbursement from the Principal for all losses and legal expenses incurred.

The amount of an executor or probate bond is set by the court, based on the total value of the estate involved, state specific probate protocols, and additional circumstances a court may note. 

As a direct, national bond writer, Colonial Surety Company makes it quick and easy to obtain fiduciary bonds of all kinds, including executor bonds, and administrator bonds, without any tagged on fees.  A user-friendly online service allows you to quote and obtain a bond that is instantly available to download and e-file in court. Executors and administrators in every state can efficiently obtain their required bonds right here:

Executor, Administrator, or Estate Bonds Here

Fiduciary and Court Bond Services for Attorneys

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• • • • Instant Bond Downloads: Select the bond you need, send it directly to your client for completion and payment, or go ahead and do it on their behalf. Instantly download or print the bond for prompt e-filing in court.
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At Colonial Surety Company, we are national and direct bond writers, so our premiums are low, and there are never any tagged on fees. Our experienced team is here to help ensure you meet even the most detailed bonding requirements.

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