Arizona Probate Bond (Personal Representative and Conservator)

When a bond is required, and who decides

A probate bond is required of a personal representative unless one of the exceptions in A.R.S. § 14-3603 applies. In Arizona, the superior court handles probate. The requirement comes from § 14-3603 or from a court order; the registrar, an official of the court, receives the bond and determines that it is duly executed.

Even when a bond is not otherwise required, the court may order one on the petition of any interested person who shows, on reasonable proof, that their interest is in danger of being lost because of the administration of the estate. An heir or devisee who waived bond earlier may still bring that petition. The court and a probate attorney have the final word on your situation.

How the amount is set

There is no flat Arizona probate bond amount. If a bond is required and the will, the court's order or your application does not set the amount, the person qualifying files a statement under oath with the registrar giving their best estimate of the value of the personal estate, the real estate less encumbrances, and the income expected from that property during the next year. You then file a bond with the registrar — or give other suitable security instead — in an amount not less than that estimate. The bond may be reduced by the amount of any real estate, less encumbrances, if the letters issued to the personal representative restrict sales of real property to court confirmation. When the court orders a bond under the interested-person route above, it sets the amount it directs to protect the petitioner, or the petitioner and others.

A conservator bond follows a different rule. The court shall require a conservator to furnish a bond conditioned on the faithful discharge of all duties, with sureties as it specifies. Unless the court directs otherwise, the amount is the aggregate capital value of the estate property in the conservator's control, plus one year's estimated income, minus the value of securities deposited under arrangements requiring a court order to remove them and the value of any land the fiduciary lacks power to sell or convey without court authorization. For good cause the court may reduce or eliminate the bond to the extent of regular fixed expenses paid for the benefit of the protected person. A bond is not required of certain institutional conservators, including a national banking association, a holder of a state banking permit, a savings and loan association authorized to conduct trust business, a qualified title insurance company, a certified trust company, or the public fiduciary.

Filing the bond, and changing or releasing it

If a bond is required, the personal representative qualifies before receiving letters by filing any required bond and a statement of acceptance of the duties of the office with the appointing court. The bond names the state as obligee for the benefit of the persons interested in the estate and is conditioned on the faithful discharge by the fiduciary of all duties according to law.

On the petition of the personal representative or another interested person, the court may excuse a bond requirement, increase or reduce the amount, release sureties, or permit substitution of another bond with the same or different sureties. A surety who wants to be released from responsibility for future acts may apply to the court for a release. If the personal representative neglects or refuses to give new and sufficient security after a citation, on the return of the citation or within the reasonable time the judge allows, the court shall revoke the letters, unless the surety that applied consents to more time.

Steps

1. Check whether a bond is required. Start with A.R.S. § 14-3603: a bond is required unless an exception applies, such as a waiver in the will or by all the heirs or devisees.
2. File your sworn estimate if needed. If a bond is required and the will, order or your application does not set the amount, file a statement under oath with the registrar giving your best estimate of the personal estate, the real estate less encumbrances, and next year's income.
3. Post the bond before letters issue. Qualify by filing any required bond and a statement of acceptance with the appointing court; where your estimate sets the amount, the bond must be at least that estimate.
4. Secure it or deposit assets. Use a corporate surety or secured individual sureties, or ask the registrar to permit a reduction for estate assets deposited with the clerk or a domestic financial institution in a way that prevents their unauthorized disposition.
5. File a bond if summary procedure fails. If the summary-procedure allegation fails after the inventory, promptly file a bond unless another exception applies.
6. Adjust, substitute, or release. On petition, the court may increase, reduce, release sureties, or allow substitution; if a surety seeks release and you do not give new security on the return of the citation or within the reasonable time the judge allows, the court shall revoke the letters, unless the surety that applied consents to more time.
7. Know that liability continues. Ending the appointment does not discharge liability for acts before termination.

Sources

• A.R.S. § 14-3603 (bond required; exceptions)
• A.R.S. § 14-3604 (amount, security, reduction, release)
• A.R.S. § 14-3601 (qualification before letters)
• A.R.S. § 14-3606 (bond terms, liability, claims)
• A.R.S. § 14-3608 (termination and continuing liability)
• A.R.S. § 14-3203 (qualification to serve)
• A.R.S. § 14-5411 (conservator bond)
• A.R.S. § 14-1201 (definitions: court, registrar)

Related guides: fiduciary bonds, get a quote, probate bond cost by state, probate bonds, administrator bonds, conservatorship bonds, executor bonds, guardianship bonds, Arizona surety bonds, probate bond cost estimator.