Other Than Life (OTL) Practice Exam

Which bond is required for the executor of wills to ensure compliance with fiduciary duties?

1. Performance bond

2. Bid bond

3. Fiduciary bond

4. Fidelity bond

The correct answer is: Fiduciary bond

The requirement for an executor of wills to obtain a bond is specifically related to the need to ensure that they faithfully execute their fiduciary duties in managing and distributing the estate. A fiduciary bond, also known as a probate bond, serves as a safeguard for the beneficiaries of the estate, ensuring that the executor will act in accordance with the law and fulfill their obligations ethically and honestly. The fiduciary bond protects the estate from losses that may be incurred due to the executor’s potential mismanagement, fraud, or negligence. By obtaining this bond, the executor provides assurance to the beneficiaries and the court that they will carry out their responsibilities diligently, thereby maintaining the integrity of the estate administration process.