HEIR'S BOND

Did you know… if an heir who was unjustly deprived of their share in an estate emerges, it won’t be the insurance company (IC) covering the cost—it will ultimately fall on the heirs who secured the heir’s bond.

While the IC may initially “advance” the rightful claim, they will later seek reimbursement from the heirs who signed the indemnity agreement.

Here’s an example of a clause commonly found in an IC’s indemnity agreement (heir’s bond):

"...to pay, reimburse, and make good to the SURETY [the INSURANCE COMPANY]... all sums of money which it shall pay or become liable to pay by virtue of said bond..."

Essentially, a suretyship acts as a credit arrangement between the heirs applying for the bond and the IC. This is why applicants are required to declare their assets—such as stocks, real estate, and bank accounts—when filling out the Heir’s Bond application.

Good to know!