What type of bond protects an estate's assets from misuse?

An executor bond is designed specifically to protect the assets of an estate from misuse. When a person is appointed as an executor of an estate, they are entrusted with managing the deceased person's assets and ensuring that debts and taxes are paid, and that the remaining assets are distributed appropriately according to the will or state law. The bond acts as a form of insurance that provides financial restitution to the estate or its beneficiaries in the event that the executor mismanages funds, acts fraudulently, or fails to fulfill their duties responsibly. This ensures a level of accountability, safeguarding the estate’s assets throughout the probate process.

Other types of bonds, such as court bonds, burglary bonds, and payment bonds, serve different purposes. Court bonds are generally required in legal proceedings to ensure compliance with court orders or to cover potential losses incurred by court decisions. Burglary bonds relate to insuring property against theft and are not specific to estate administration. Payment bonds guarantee payment to a contractor or subcontractor in construction projects, which does not encompass the administration of estates.