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Legal Terms - Administrative bond
A third-party guarantee, typically provided by an insurance company, to compensate for any damage incurred if the individual who has been awarded letters of administration fails to handle the estate appropriately. The court typically mandates an administration bond as a prerequisite for granting letters of administration, but only in cases where the beneficiaries are deemed to require exceptional safeguarding. This may occur when the administrator resides in a foreign country or when there has been a disagreement on the appropriate individual to handle the estate.
A third-party guarantee, typically provided by an insurance company, to compensate for any damage incurred if the individual who has been awarded letters of administration fails to handle the estate appropriately. The court typically mandates an administration bond as a prerequisite for granting letters of administration, but only in cases where the beneficiaries are deemed to require exceptional safeguarding. This may occur when the administrator resides in a foreign country or when there has been a disagreement on the appropriate individual to handle the estate.
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