Definition of Administration bond:
An administrator is appointed to handle the estates of individuals who died without a valid will or who had a will but not an executor. An administrator is also appointed by a probate court to oversee the deceased’s estate if the principal executor dies, has been removed from the role, or has declined to serve.
An individual who is handling an estate for a third party will secure a bond to help offset expenses acquired during the processing of the estate.
An administration bond is a bond that is posted on behalf of an administrator of an estate to provide assurance that they will conduct their duties according to the provisions of the will and/or the legal requirements of the jurisdiction. The bond covers any financial losses to the estate due to dishonest or improper acts by the administrator.
Meaning of Administration bond & Administration bond Definition