What Is a Probate Bond and Who Pays for It?

When you file to open probate, the court asks whether the person serving as executor or administrator, called the personal representative, should post a bond. For many families, this is the first time they have heard the word.

I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. I help families sell homes through probate, and the bond is one of the early steps that can shape the timeline. This is general information, not legal advice. A probate attorney can explain how it applies to your family's case.

The Judicial Council's Waiver of Bond form, DE-142, explains it plainly: a bond is a form of insurance to replace assets that may be mismanaged or stolen by the executor or administrator. The cost of the bond is paid from the assets of the estate.

The form also warns that if no bond is ordered and the estate suffers a loss because the personal representative does not properly perform the role, part or all of that loss may not be recoverable. That is why the court takes the question seriously.

According to form DE-142:

• If the will waives bond, a bond may not be required, as long as the court approves.
• If the will does not waive bond, or there is no will, the law ordinarily requires a bond.
• If all persons eligible to receive a share of the estate waive bond, and the court approves, the personal representative will not have to give one.

The Orange County Superior Court's formal probate self-help packet notes that each person waiving bond signs their own DE-142, and that a local Declaration in Support of Bond Waiver, form L-0758, is completed when a waiver is requested. The court still decides.

A guardian ad litem or other legal representative must sign for a minor or an incapacitated heir, according to the form.

The estate does. Form DE-142 says the cost of the bond is paid from estate assets. The Orange County court's packet adds that the personal representative may reimburse themselves for the premium on the bond.

The bond is usually purchased from a surety company, and the premium depends on the bond amount. Your attorney can help you get quotes.

California Probate Code section 8482 gives the court discretion to set the amount, within a maximum. That maximum is generally based on:

• The estimated value of the personal property
• The probable annual gross income of the estate
• The estimated value of the real property, if the personal representative has authority to sell it without court supervision

This is where the house can come in.

If the personal representative will sell the home under independent administration, the value of the home may be part of the bond calculation. Section 8482 also allows the court to require an additional bond before confirming a sale, since the sale turns the home into cash.

That means the bond question is worth settling early, before the house is listed. Talk with your attorney about the bond and the court's timeline, then plan the sale around it. Our guides on how long probate takes, court confirmation and who pays the bills on a house in probate can help you plan.

If your family is handling a loved one's home in probate, I'd welcome a private planning conversation about the house, the timeline and what comes next. Call or text me at 714.366.8575 | DRE: 01397168, or contact me.