Minnesota Probate Bonds for Personal Representatives and Conservators

When a Minnesota probate bond is required, and who can demand one

This page explains the statutes; the court and a probate attorney have the final word on your case. In Minnesota, decedents' estates are handled by the district court. In an informal appointment, no bond is required of a personal representative, except when a special administrator is appointed, when the will expressly requires a bond, or when bond is required after a demand under the statute. In a formal appointment, no bond is required if the will relieves the representative of bond, or if all interested persons with an apparent interest over $1,000 — other than creditors — make a written request that no bond be required, unless the court determines that bond is needed to protect interested persons. The court may also, by its order, dispense with the bond requirement at the time of a formal appointment. The statute we reviewed does not state a blanket rule for formal appointments outside these situations, so if you are unsure whether a bond applies to your appointment, ask the court or a probate attorney.

Any person who appears to have an interest in the estate worth more than $1,000, or any creditor with a claim over $1,000, may make a written demand that the representative give bond. The court may then require or excuse the bond. Someone who first waived bond can still demand it later. After notice, and until the bond is filed or the requirement is excused, the representative must not use the powers of office except as needed to preserve the estate. If the representative does not give suitable bond within 30 days after receiving notice, that is cause for removal and appointment of a successor.

How the bond amount is set

Minnesota's statute does not give a dollar formula for a personal representative's bond. The law we reviewed sets no multiplier of estate value and no fixed basis for the starting figure; it says the representative files the bond or gives other suitable security "in an amount not less than the bond." Because the statute does not state how that starting amount is set, ask the court or a probate attorney what amount will apply in your case. The court may permit the amount to be reduced by the value of estate assets deposited with a domestic financial institution, in a way that prevents their unauthorized disposition. On its own motion, or on a petition from the representative or another interested person, the court may excuse the bond, increase or reduce the amount, release sureties, or allow a different bond to be substituted.

Changing, releasing, or claiming on the bond

On its own motion or on petition, the court can increase or reduce the amount, release sureties, or permit substitution of another bond. A successor representative, any other representative of the same decedent, or any interested person may start a court proceeding against the surety for breach of the bond. The bond is not used up by the first recovery; it may be proceeded against from time to time until the whole penalty is exhausted. If a sole or last surviving representative is removed, becomes disabled, or dies, the court may — after notice and a hearing — order that representative's surety to file a verified final account and a petition for complete settlement and, if proper, for distribution and closing of the estate. If the court finds the representative mismanaged the estate, misappropriated funds or committed other misconduct the surety is liable for, the court settles the account and enters judgment against the representative and the surety as appropriate. No proceeding may be brought against the surety on a matter where a proceeding against the representative is already barred by adjudication or by limitation. Ending the appointment does not discharge the representative from liability for acts or omissions that happened before it ended.

Steps

1. Confirm whether a bond applies. Check whether the appointment is informal or formal, whether the will requires or relieves bond, and whether all interested persons over $1,000 (other than creditors) have waived it.
2. Watch for a demand. An interested person with an interest over $1,000, or a creditor with a claim over $1,000, can demand bond in writing, after which the court decides to require or excuse it.
3. Obtain the bond from a surety. If a bond is required, a corporate surety can issue it. What you pay is a small share of the bond amount, set by the surety from your credit and the estate's details.
4. Qualify before letters. File any required bond with the appointing court, along with your oath of office (or, for a corporate representative, a statement of acceptance of the duties).
5. If a demand is made, act within 30 days. Once you have notice of a bond demand, use your powers only to preserve the estate until the bond is filed or excused; failing to give suitable bond within 30 days after notice is cause for removal.
6. Adjust the bond if needed. On motion or petition, the court can increase or reduce the amount, release sureties, or allow substitution.
7. Close the estate. Ending the appointment does not discharge liability for acts or omissions before it ended; the court can release sureties on its own motion or on petition.

Sources

• Minnesota Statutes 524.3-601 (qualification before letters)
• Minnesota Statutes 524.3-603 (when bond is required)
• Minnesota Statutes 524.3-604 (amount, surety, reduction, changes)
• Minnesota Statutes 524.3-605 (demand, freeze on powers, 30-day removal)
• Minnesota Statutes 524.3-606 (bond terms, claims against the surety)
• Minnesota Statutes 524.3-608 (termination and liability)
• Minnesota Statutes 524.5-415 (conservator bond; bank or trust company)
• Minnesota Statutes 524.5-416 (conservator bond threshold; blocked assets)
• Minnesota Statutes 524.1-201 (district court; definitions)

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