Surety

noun

/ˈʃʊərəti/

In a Nutshell

A person or entity that guarantees to pay another person's debt or fulfill their obligation if they fail to do so.

PLAIN ENGLISH

A surety is someone who promises to pay up or perform if you don't. In estate matters, courts sometimes require executors to get a surety bond—basically insurance that guarantees they won't steal or mismanage the estate.

⏱ When you'll encounter this term

  • Court requires executor to post bond before appointment
  • High-risk estate administration situations
  • Executor living overseas or having poor credit
  • Beneficiaries requesting protection against executor
EXAMPLE

"The court appointed my cousin as executor of Dad's $500,000 estate, but required him to get a surety bond for $500,000. If he steals or loses money, the surety company pays us back and then goes after my cousin to recover the loss."

⚖️ Compare: Surety Bond vs Waiver of Bond

Surety Bond

Insurance protection. Third party guarantees performance. Costs annual premium. Required when court concerned about risk.

Waiver of Bond

No insurance. Will waives bond requirement. No premium cost. Allowed when beneficiaries trust executor.

💡 Did you know?

Most wills include a clause waiving the bond requirement for executors to save the estate money. However, courts can still require a bond if they believe there's significant risk—particularly if beneficiaries object or the executor has credibility issues.