Applying for Administration of an Estate

[sdesai110689]

My question involves estate proceedings in the state of: New Jersey

A quick background:
- My Dad had no will
- He has some money in his bank accounts
- He has a property; Fair-market value of $145,000 with a mortgage of $170,000. Tax-assessed value of $195,000

That being said, my questions are..

1. What exactly is a surety bond? Will I get the money I spend on the surety bond back after the estate is settled or is it gone for good? I was told by the county clerk that I would have to get a surety bond for a certain percentage of the value of the estate. That leads to my next question..

2. How do you get the estimate value of the estate when applying for administration? Is that value all of his assets minus all of his liabilities? Or is it just all of his assets?

[Mr. Knowitall]

A surety bond is a performance bond, in this case to protect the estate from financial impropriety by its fiduciary (you). It's a form of insurance provided by a bonding agent. When you purchase the bond you can inquire about whether any amount will be refunded if no claim is made during the period the bond is in effect. You would normally be reimbursed for your allowable expenses, including the cost of the bond, when the final distribution of the estate is approved and the assets distributed.

The bond requirement is based upon the value of the estate's assets - the full value of the real and personal property in the estate.

[sdesai110689]

There is only my sister and I are the only beneficiaries of the estate. She is going to renounce her rights to me for administration of the estate and help me with all cost, as she lives out of the state. How common is it for the agency to refund the bond amount if no claim is made? If they don't, we are essentially paying thousands of dollars to settle an estate that will come right back to us, right?