Beneficiary Bond | 5-minute read
Heir RefundingBond | Inherited Assets | Bond and Release
What is a Refunding Bond and Release?
Click HERE for the original article by By Paul W. Norris
A refunding bond and release is a legal requirement a beneficiary is presented with before receiving a distribution. This is to ensure that should the estate encounter liabilities above estate assets, following distributions, the beneficiary agrees to return distributed monies necessary to cover said liabilities.
Accordingly, the request for bond and release may or may not accompany a current accounting of the estate. If it does, the request may require the beneficiary’s approval of an estate administration, including financials, to date. If it does not, the beneficiary may request an accounting.
Summary:
Per the article from Mr. Norris, The “main reason that the executor requires a beneficiary to sign a refunding bond and release is to enter into an agreement with the beneficiary whereby the beneficiary agrees to return a portion of their bequest to the estate should unanticipated tax liabilities or other liabilities arise and there are insufficient estate assets to pay the expense.”
Frequently Asked Questions
- What is the purpose of a Refunding Bond and Release?
- Should I consult with my own attorney before signing?
- Can I require a full accounting of the estate prior to signing a Refunding Bond and Release?
- Do I Have to Sign a Refunding Bond and Release to Get My Inheritance?
“It is suggested that if you have any concerns about signing the refunding bond release, or that the estate is being administered properly, that you seek appropriate representation to assist you through the process.”
– Paul W. Norris, Attorney, Stark & Stark, Attorneys at Law
See Original Article: The Refunding Bond and Release
Acknowledgment
Paul W. Norris is an Attorney and Shareholder at Stark & Stark, Attorneys at Law based in Hamilton, New Jersey. Mr. Norris holds certification as a Civil Trial Attorney, as acknowledged by the Supreme Court of New Jersey. He is an integral member of the firm’s Litigation practice group. His areas of expertise encompass Probate Litigation, Construction Litigation, Commercial Litigation, as well as representation in Criminal and Municipal Court matters. With a robust focus on Probate Litigation, Mr. Norris defends and initiates Will contests for beneficiaries and potential beneficiaries of estates. His practice also includes related litigation involving guardianship proceedings, executor removals, and issues surrounding the misuse of powers of attorney. He actively prosecutes and defends such actions and is appointed as a Mediator by the Court.Mr. Norris holds a J.D., from the Seton Hall University School of Law and a B.A. in Spanish and Criminal Justice from Indiana University.Stark & Stark is a full-service law firm in New Jersey, New York, and Pennsylvania. Founded in 1933, the firm currently represents clients throughout the United States across over 30 practice areas.