[WSBAPT] Logistics of PR bonds in estate planning

[Ronda Larson Kramer]

Hi Listmates,

Clients with an estate over $5 million want their wills to require an executor bond (the PR is a WA resident but successor PR is not). I assume it's fine to simply say in the will "My PR shall post bond." Or does the will need to give some information as to how much of the estate they want covered by the bond?

I also want to educate clients of the potential burden they are imposing on their PR. What my research found is that typically, the cost for an Executor Bond is approximately 0.5% of the bond amount.  There is a sliding scale for bonds that are in excess of $500,000. How much will the bond end up being? Does the court decide how much the bond will be at probate? Is a bond supposed to cover the whole estate? Or is it up to clients to say in the will how much of their estate they want the bond to cover?

0.5% of $2.5 million is $12,500. So conceivably, their PR would have to pay $12K to be the fiduciary.

Thanks.

Ronda Larson Kramer
J.D., LL.M. Taxation, Owner

LARSON LAW, PLLC
Elder Law, Estate Planning
P.O. Box 7337
Olympia WA 98507
Ph: 360-768-0775
ronda at larsonlawpllc.com<mailto:ronda at larsonlawpllc.com>
www.larsonlawpllc.com<http://www.larsonlawpllc.com/>

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