Administration Bond: When Sureties Are Required for Letters of Administration
The Probate Registry can require an administrator to give a bond backed by sureties before a grant issues — protecting creditors and beneficiaries if the administrator defaults. Executors named in a will are never required to give a bond.
Administration Bond: Key Rules at a Glance
Applies only to letters of administration
Not to probate grants — executors named in a will are not required to give a bond.
Governed by rule 36 NCPR 1987
The Probate Registrar has a discretion to require a bond and to specify the number of sureties.
Most often required where
Administrator is non-UK resident; estate involves a minority or life interest; creditors request protection.
Can be dispensed with
Rule 36(4): Registrar can dispense with bond entirely if all entitled beneficiaries consent.
Trust corporations exempt
Rule 36(3): a trust corporation acting as administrator does not need to give a bond.
Frequently Asked Questions
What is an administration bond and when is it required?
An administration bond is a formal undertaking entered into by the administrator (the person who takes out letters of administration) and one or more sureties guaranteeing that the administrator will faithfully administer the estate — collect in all assets, pay all debts and expenses, and account to the beneficiaries. If the administrator fails to do so and the estate suffers a loss, the surety can be required to make it good. Under rule 36 Non-Contentious Probate Rules 1987, the Probate Registry has power to require an administration bond to be given before a grant of letters of administration is issued. This power is discretionary — it is not exercised in every case. Factors that increase the likelihood of the Registry requiring a bond include: the administrator is not resident in the United Kingdom; the estate includes a minority or life interest; there is reason to doubt the administrator's reliability; or a creditor has asked the Registry to impose a bond to protect creditors' interests.
What is a surety for an administration bond?
A surety is a person or institution that guarantees to pay out if the administrator defaults — essentially co-signing the bond. The surety must have sufficient assets to make good any loss to the estate. An individual surety is typically required to demonstrate financial means (e.g. owning property of equal or greater value to the estate). In practice, individual sureties are hard to find and the cost of obtaining a professional surety bond from an insurance company is significant. Rule 36 NCPR 1987 gives the Registrar discretion to require one or two sureties or to waive the surety requirement altogether. Where a bond is required, the administrator must either find individuals willing to act as surety or pay for a professional surety (fidelity bond) from an insurance or specialist surety company.
Can the Probate Registry dispense with the requirement for a bond?
Yes. Rule 36(4) Non-Contentious Probate Rules 1987 gives the Probate Registrar power to dispense with the requirement for a bond or for sureties. In practice, the Registrar frequently exercises this power where the administration is straightforward, the administrator is a trusted family member, and the beneficiaries consent. The Court can also dispense with the requirement if all persons beneficially entitled to the estate join in the application and consent. A key practical situation where a bond is not required is where a trust corporation is appointed as administrator — trust corporations (regulated banks, solicitor practices, or professional trustee companies authorised to act as trustee or personal representative) are not required to give a bond under rule 36(3) because their regulatory oversight provides an equivalent protection.
Is a bond required where the grant is to an executor rather than an administrator?
No. The administration bond requirement under rule 36 NCPR 1987 applies only to grants of letters of administration — that is, grants made on intestacy or where there is no executor able and willing to act. Where probate is granted to an executor named in the will, no bond is required. The distinction reflects the fact that executors are appointed by the testator (who has personally chosen and trusted them), whereas administrators are appointed by the court from the list of persons entitled under the intestacy rules. The greater court scrutiny for administrators reflects the potential risk that an unknown person of unknown means will be responsible for a deceased person's estate.
What happens if an administrator defaults and there is a bond?
If the administrator misappropriates estate assets, fails to pay creditors or beneficiaries, or otherwise causes loss to the estate, and there is a valid administration bond with sureties, the beneficiaries or creditors can seek to enforce the bond against the sureties. The claim is for the amount of the loss caused by the administrator's breach, up to the value of the bond. In practice, pursuing sureties is expensive and litigious. The better protection for beneficiaries is to apply to the court for the removal of the defaulting administrator under section 116 Senior Courts Act 1981 (where there is good reason to do so) and the appointment of a replacement administrator — such as a trust corporation — who can then recover assets from the defaulting administrator by tracing or direct claim.
Avoid Intestacy — Name Your Executor in a Will
An executor named in a will never needs to give an administration bond. Dying without a will means your family may face the bond requirement on top of the intestacy rules. WillSafe from £19.97.