Legal Question in Wills and Trusts in New York

Re: Executor or Trustee

Many times a surrogate court judge will require that an executor/administrator who is charge of money obtain an insurance policy to make certain that the money goes where it should go. If not so stated in the will, courts may require the insurance policy which costs money to be paid by the estate

If you have any other questions, please feel to contact me.

Re: Executor or Trustee

Traditionally the Surrogate requires that the person appointed to handle the estate post a surety bond to insure the proper handling of the estate. By Will that bond requirement can be eliminated, which saves the annual premium cost which depends upon the size of the estate, and can run thousands of dollars a year. Since usually a family member, close friend or professional (attorney or accountant) is appointed, the cost of the bond is just a waste of money. While, if the person appointed acts improperly, the bond would cover any losses to heirs, legal remedies are still available. This is a traditional clause in a Will and I regulalrly include in every Will I prepare, unless directed differently by the Will maker.

Re: Executor or Trustee

This provision waives the requirement of a Bond to be filed by the Executor with the surrogate. Bonds are purchased from an insurance company (with estate money!) to assure the faithful performance of the duties of the executor. In other words, the bond requires the insurance company to pay money to the beneficiaries if the excutor steals from the estate.

If you have a trusted executor, the bond is a needless estate expense. For example, a Bond in one case (for a Trustee) in the amount of $500,000 cost more than $18,000. This could be better used by the beneficiaries.

I hope this helps!

Ron Cappuccio

http://www.SaveYourEstate.com