Do Executors Need a Surety Bond? What Courts Expect
Confusion about surety bonds often hits a newly named executor at the worst possible time. Many people walk into the clerk’s office with a death certificate and leave with a stack of unfamiliar forms.
At Commonwealth Life and Legacy Counsel, our team guides Central Virginia families through that first maze of probate tasks every week. The discussion below explains when a bond is required, how judges set the amount, and what steps you can take to stay on schedule.
What is a Surety Bond?
A surety bond is a financial guarantee that protects heirs and creditors if the personal representative mishandles money or property. Think of it as insurance for the court, not for the executor. The bond company promises to reimburse the estate for losses, then looks to the executor for repayment if a claim is paid.
This safety net matters because the executor has control over bank accounts, investments, and personal items that belonged to the person who died. If those items disappear or bills go unpaid, the bond stands ready to cover the shortfall. For that reason, judges often treat the bond as an essential guardrail during probate.
When Does a Virginia Executor Need a Surety Bond?
Virginia Code § 64.2-504 directs clerks to require a bond unless an exception applies. The clerk follows the statute, local guidelines, and any instructions found in the will. Below are the main scenarios you are likely to face.
The Role of the Will
A carefully drafted will often waives the bond by stating that the executor “shall serve without surety.” Courts honor that language unless red flags appear, such as major disputes among heirs or evidence of financial trouble in the executor’s past. When the waiver is accepted, the representative can qualify with no bond and begin work right away.
Intestacy (No Will)
If there is no will, the personal representative is called an administrator, and a bond is usually mandatory before Letters of Administration are issued. Judges have leeway to drop the requirement for small estates when every heir signs a written waiver that the clerk files with the court. That said, the clerk may still insist on a bond if the estate owns rental properties, a business, or other assets that carry extra risk.
Factors Considered by Virginia Courts
Clerks look at several practical points when deciding whether to insist on a bond or to set a high figure. Common considerations include:
- Value and complexity of the estate, especially liquid assets that can be moved quickly
- Risk of mismanagement, judged by the executor’s credit history or prior conduct
- Relationship between the executor and the beneficiaries, including any pending lawsuits
- Residency of the executor; out-of-state personal representatives face closer scrutiny
When the items above suggest possible conflict or loss, the bond amount climbs. When family harmony, low asset values, and a strong waiver appear together, the bond can be reduced or removed.
Types of Bonds and Costs in Virginia
Virginia law recognizes both cash bonds and surety bonds. Each path meets the court’s goal of protecting the estate, yet they work quite differently.
Cash Bond
The executor places personal funds with the court, usually at least twice the value of personal property. Large deposits lock up money that might be needed for funeral bills or house repairs, making the cash route hard for most individuals. If the job is completed faithfully, the cash is returned once probate closes.
Surety Bond
A surety bond comes through a bonding company. By statute, the bond must equal at least the full value of the personal estate, and in some cases, it must also cover real estate or rental income if the will authorizes the executor to handle those assets. In practice, clerks sometimes apply multipliers that increase the bond above that minimum, which makes the required amount lower than a cash bond but still large enough to protect beneficiaries.
The executor pays a small premium, often between one and fifteen percent of the bond amount, and that fee is not returned at closing. Even with the fee, using a surety company usually costs far less up front than placing personal cash on deposit.
Determining the Bond Amount
Before heading to the clerk’s office, gather rough figures for:
- Total of checking, savings, brokerage, and other liquid accounts
- Fair market value of vehicles, household goods, and other personal items
- Income the estate expects within the next twelve months, such as rent or dividends
The clerk adds these numbers, applies the multiplier required by statute, and writes the final bond amount into the court order.
Bond Options at a Glance
| Feature | Cash Bond | Surety Bond |
| Typical Multiple of Personal Estate | 2× | 1.5× |
| Up-Front Payment | Full amount deposited with court | Premium of 1-15 % paid to surety |
| Refund at Closing | Yes, entire deposit | No, premium is a fee |
| Financial Strain on Executor | High | Modest |
The Process of Obtaining a Surety Bond
Once the clerk signs paperwork that lists the bond amount, the personal representative follows these steps:
- Contact a bonding company or insurance agent that handles probate bonds.
- Complete a brief application sharing credit information and estate details.
- Wait for underwriting, which can take minutes for small estates or a day for larger ones.
- Pay the premium and receive the bond form.
- File the executed bond with the clerk, then collect your Letters.
Keep a copy of the bond with your estate records, as the surety may ask for updates while probate is open.
Consequences of Not Obtaining a Required Bond
Ignoring a bond order is risky. The clerk will not release Letters, leaving bills unpaid and assets frozen. If an executor starts handling property without the bond, the court can remove that person and appoint someone else, sometimes with extra costs charged back to the first representative. Personal liability for any loss is also possible, along with fines ordered by the judge.
Need Assistance with Estate Administration in Virginia?
Probate tasks rarely arrive at a convenient moment, yet the deadlines are firm. Commonwealth Life and Legacy Counsel helps families in Charlottesville, Fluvanna, Powhatan, and surrounding counties move forward with confidence. Call us at 434-589-2958 for the Troy office or 804-598-1348 in Powhatan, email info@winget-hernandez.com, or visit our Contact Us page to start the conversation. A short phone call today can spare weeks of delay once the court clock begins to tick.