A Texas administrator bond is often required of a dependent administrator of a probate matter. While not as commonly appointed as an independent executor, a dependent administrator is allowed frequently when there is any controversy between the heirs of an estate or when the estate has a great deal of debt and the executor wants some structure from the court regarding the order of debt payments. The administrator is “dependent” upon the Court for oversight and approval of all of his actions, hence the name of this type of fiduciary. The Texas personal representative bond, also called a Texas executor bond must be manuscripted to include the conditions required by law, payable to the county judge or probate judge of the county in which the probate proceedings are pending and to his successors in office. Such bond must bear the written approval of either of such judges.
The Texas administrator bond penalty must be fixed by the judge, in an amount deemed sufficient to protect the estate and its creditors. In any case where a surety bond is required the court must fix the bond amount after determining: (a) The amount of cash on hand and where deposited, and the amount of cash estimated to be needed for administrative purposes, including operation of a business, factory, farm or ranch owned by the estate, and expenses of administration for one (1) year. In setting the Texas executor bond the judge must also consider the revenue anticipated to be received in the succeeding twelve (12) months from dividends, interest, rentals, or use of real or personal property belonging to the estate and the aggregate amount of any installments or periodical payments to be collected. Lastly, the Texas administrator bond penalty must also reflect the estimated value of certificates of stock, bonds, notes, or securities of the estate, the name of the depository, the face value of any life insurance or other policies payable to the person on whose estate administration is sought, or to such estate, and such other personal property as is owned by the estate. Section 194 of the Texas Probate Code is the appropriate statute to understand when determining the Texas personal representative bond form, amount and the qualifications of corporate sureties.
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