Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.
Probate law doesn’t allow families to begin distributing a loved one’s assets immediately after their death. Before asset distribution can begin, they must go through probate, which involves inventorying assets, resolving debts, and meeting other court requirements.
Studies have shown probate can cause stress for families. Many beneficiaries spend months and sometimes even years awaiting the outcomes of the process.
Probate bonds can provide families the financial protection they need throughout estate administration. Here are the steps you should take to secure one for your family.
Step 1: Make Sure You Understand What Probate Bonds Are
Probate bonds, or fiduciary bonds, are a type of surety bond used to protect families from the potential wrongdoings of executors. Executors are in charge of overseeing probate and the execution of people’s wills.
In many cases, a deceased person will specifically request that a particular family member serve as the executor of their estate. However, in others, a deceased person may die before appointing an executor for their will, or they may not leave behind a will. In this case, a court will appoint an executor.
Either way, executors are often in charge of looking after assets worth large sums of money. If they choose to steal from the estate they’ve been asked to watch over, it can hurt a family immensely.
Probate bonds offer financial protection to families by reimbursing beneficiaries if and when executors commit illegal acts. Families aren’t always required to buy these bonds, but they are sometimes necessary. Families might also want to invest in these bonds to provide peace of mind.
Step 2: Find a Company That Provides Probate Bonds
If your family likes the idea of securing a probate bond, search for a company that can provide one. Since over three million Americans die annually, a big market for probate bonds has emerged.
Look around for a reputable company that makes it easy to apply for these bonds. Find one that offers them at affordable prices as well.
Step 3: Apply for a Probate Bond
To secure probate bonds, families must complete applications through the proper companies. When doing this, your family will likely need to provide important information, such as:
- Probate court documents
- A loved one’s financial documents
- The beneficiaries listed in a loved one’s will
- A copy of a loved one’s will
Applying for a probate bond shouldn’t take long, but you will need to double-check to be sure you don’t forget to include any vital information. Otherwise, your application for a probate bond could be denied.
Step 4: Pay for a Probate Bond
Companies that offer probate bonds will have a lot at stake when they issue them to families. If executors mismanage the assets in the estates they oversee, these companies may have to pay out thousands of dollars to beneficiaries.
For this reason, investing in these bonds comes with a relatively large cost. Generally speaking, the average cost of a probate bond is around 0.5% of the value of an estate.
If, for example, you wish to purchase a probate bond for a loved one’s estate that is worth around $250,000, you can expect to pay about $1,250. It’s a small price to pay for the coverage that probate bonds provide, but it’s still an added expense that families don’t always anticipate.
Step 5: Take Out a Probate Cash Advance, If Necessary
Is your family worried about paying for a probate bond?
If so, know that there is an option for families who would like to access an inheritance to pay for probate loans. They can take out probate cash advances through a lender like Rockpoint Probate Funding.
To do this, simply take the following steps:
- Find the application for a probate cash advance on the Rockpoint Probate Funding website.
- Fill out the application by providing basic information about your family and loved one.
- Wait for Rockpoint Probate Funding to review your application and make an executive decision about whether to approve or deny it.
- If approved, receive a probate cash advance in as little as just a day or two.
- Use a probate cash advance to buy a probate bond.
Step 6: Receive a Probate Bond
Whether you need to apply for a probate cash advance to pay for a probate bond or not, you will receive the bond shortly after paying for it.
From there, this probate bond will usually remain valid for one to two years. It will expire once a loved one’s estate is settled.
Step 7: Collect Some of the Premium for a Probate Bond Back in Certain Cases
More often than not, families won’t receive portions of their premiums for probate bonds back after settling the estates of their loved ones. However, a company may return a percentage of your premium for a probate bond if your loved one’s estate is settled quickly.
Don’t depend on receiving a portion of your premium back. That being said, it could come as a welcome surprise when the probate process concludes. Come up with a plan for fairly distributing it back to your various family members.
Having a Difficult Time Paying for a Probate Bond? Rockpoint Probate Funding Can Help
Not all families can afford to pay for probate bonds. If your family falls into this category, Rockpoint Probate Funding can help you secure a probate bond. Contact us at (888) 263-8588 today to discover more about our probate cash advances and whether they may be right for you.
