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<p class="MsoNormal">Bond rates will go down the larger the bond is. Here is Spino Bonding’s published rates for example.
<a href="https://www.webondu.com/bond-rates">https://www.webondu.com/bond-rates</a><o:p></o:p></p>
<p class="MsoNormal">But keep in mind that these are annual premiums. At that size of an estate, the administration is going to take several years to get the Estate Tax Return prepared, submitted, and wait for approval or questions from DOR. So in that sense,
the bond fee could end up being higher if they have to renew multiple times.<o:p></o:p></p>
<p class="MsoNormal">If they are going to burn through $20,000+ on bonding, maybe it would be easier to have a trust company handle the whole administration instead? Posting a bond seems like an unnecessary expense.<o:p></o:p></p>
<p class="MsoNormal">Best, <o:p></o:p></p>
<p class="MsoNormal">Nick<o:p></o:p></p>
<p class="MsoNormal"><b><span style="color:#2B6AA4">Nicholas Pleasants<o:p></o:p></span></b></p>
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<p class="MsoNormal"><span style="color:black">Pleasants Law Firm, P.S.<br>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:12.0pt;color:black">From:
</span></b><span style="font-size:12.0pt;color:black">wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Ronda Larson Kramer <ronda@larsonlawpllc.com><br>
<b>Date: </b>Sunday, February 27, 2022 at 8:57 PM<br>
<b>To: </b>wsbapt@lists.wsbarppt.com <wsbapt@lists.wsbarppt.com><br>
<b>Subject: </b>[WSBAPT] Logistics of PR bonds in estate planning<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:14.0pt">Hi Listmates,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt">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?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt">I also want to educate clients of the potential burden they are imposing on their PR. What my research found is that t<span style="color:black;background:white">ypically, 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?</span></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:black;background:white"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:black;background:white">0.5% of $2.5 million is $12,500. So conceivably, their PR would have to pay $12K to be the fiduciary.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Thanks.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:#595959">Ronda Larson Kramer</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#AEAAAA">J.D., LL.M. Taxation</span></b><b><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#AEAAAA">,</span></b><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#AEAAAA">
Owner </span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#AEAAAA"> </span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:18.0pt;font-family:"Bahnschrift SemiBold",sans-serif;color:#595959">L</span></b><b><span style="font-size:14.0pt;font-family:"Bahnschrift SemiBold",sans-serif;color:#595959">ARSON</span></b><b><span style="font-size:18.0pt;font-family:"Bahnschrift SemiBold",sans-serif;color:#595959">
L</span></b><b><span style="font-size:14.0pt;font-family:"Bahnschrift SemiBold",sans-serif;color:#595959">AW</span></b><b><span style="font-size:18.0pt;font-family:"Bahnschrift SemiBold",sans-serif;color:#595959">, PLLC</span></b><o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#AEAAAA">Elder Law</span></b><b><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#AEAAAA">,
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#767171">P.O. Box 7337</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#767171">O</span><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:#767171">l</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#767171">ympia
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><a href="mailto:ronda@larsonlawpllc.com">ronda@<span style="font-size:12.0pt">l</span>arsonlawpllc.com</a></span><o:p></o:p></p>
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