Why Ohio Probate Courts Require Bonds

What Is an Ohio Probate Bond?

An Ohio probate bond, sometimes called a fiduciary bond, is a financial guarantee required by the probate court before it allows someone to manage estate assets. The bond exists to protect beneficiaries and creditors if the executor or administrator mishandles money, fails to follow court orders, or acts dishonestly.

From the court’s perspective, a bond is a form of protection. From a family’s perspective, it can feel like an unnecessary hurdle that delays access to money, property, and closure. Understanding what a probate bond is, when it’s required, and how to deal with it early can save months of frustration.

This is not insurance for the executor. If the bond company pays out on a claim, it will usually seek reimbursement from the fiduciary personally.

In many cases, the probate court will not issue letters testamentary or letters of administration until the bond is filed and approved. Without those letters, the fiduciary has no legal authority to act.

If your case is stalled because the court requires a bond. Here’s how to fix it!

Why So Many Probate Cases Get Stuck at the Bond Stage

Families are often surprised when they learn that probate can’t move forward without a bond. From their point of view, the executor has already been “chosen.” From the court’s point of view, the executor hasn’t earned that authority yet.

Until the bond requirement is satisfied or legally waived, the court typically will not allow the fiduciary to access bank accounts, sell property, pay debts, or distribute assets. That’s why cases can sit idle for weeks or months with nothing happening.

When people say, “The probate court isn’t doing anything,” the real issue is usually that the bond hasn’t been filed.

When an Ohio Probate Bond Is Required

Ohio probate courts generally start from the position that a bond is required unless a specific legal exception applies. Whether the estate has a will or not, the court evaluates who is appointed as a fiduciary and who stands to inherit. Bonds are most often required when the court sees a higher risk of mismanagement, conflict, or financial exposure. Even if a bond is initially waived, the court may require one later if concerns arise during probate.

When a bond is required, its amount is based on the value of assets under the fiduciary’s control rather than the estate’s net worth. Ohio law typically requires the bond to be set at no less than twice the value of certain probate assets, which can quickly increase the amount.

A probate bond is most commonly required, and bond amounts are most impacted when:

• There is no will governing the estate
• the estate has multiple heirs or beneficiaries
• beneficiaries include minors or legally incapacitated individuals
• there are family disputes or concerns about asset handling
• the estate includes significant cash, investment accounts, or liquid assets
• the estate involves rental or other income-producing property, or additional assets are discovered after the inventory is filed

Who Pays the Probate Bond in Ohio?

This is one of the most common and contentious questions in probate cases.

In most situations, the executor or administrator pays the bond premium upfront. The bonding company requires payment before issuing the bond, and the court generally wants proof that the bond is in place before issuing letters.

Whether the fiduciary can later be reimbursed from estate funds depends on the circumstances, the court, and sometimes local probate rules. Some courts treat bond premiums as a legitimate expense in estate administration. Others scrutinize reimbursement more closely.

What matters most from a practical standpoint is this: if no one pays the premium, the bond doesn’t issue, and the case doesn’t move.

How to Unstick a Probate Case Delayed by Bond

The first step is to confirm whether a bond is actually required and whether a statutory exemption applies. This often requires a close look at the will, the family relationships, and who is entitled to inherit.

Next, the bond amount needs to be calculated correctly. Underestimating asset values is a common mistake that leads to rejected bonds or later demands for additional coverage.

Once the amount is clear, the fiduciary should apply for the bond immediately. Bond underwriting can take time, especially if credit or financial issues are involved. Waiting until the last minute almost guarantees delays.

Finally, the bond must be filed with the probate court and formally approved before letters are issued. Once that happens, the case usually moves quickly again.

Ways to Reduce Delays

Ohio courts have discretion to reduce bond amounts for good cause. While this is not automatic, it can be an important option in larger estates or cases where the bond would be financially burdensome.

In some situations, the court may allow estate funds to be placed in a restricted custodial account instead of requiring a traditional bond. These accounts limit access to the funds and provide the court with added oversight, which can reduce or eliminate the need for bonding.

Both options require court approval and careful planning. They are much easier to pursue early in the case than after delays have already piled up.

What Happens If a Bond Is Required and Never Filed

If a bond is required but not provided, the court may refuse to issue letters altogether. If letters have already been issued and a bond is later ordered, failure to comply can result in the removal of the fiduciary.

For executors and administrators, this can mean losing control of the case and potentially facing personal liability if estate assets were mishandled before removal. For beneficiaries, it can mean even longer delays and increased costs.

Probate bonds exist to protect estates, but they are also one of the most common sources of delay in Ohio probate cases.  If your probate case is stalled because the court requires a bond, or if you’re concerned about how a fiduciary is handling estate assets, getting legal guidance sooner rather than later can make a significant difference.

Heban, Murphree & Lewandowski, LLC focuses heavily on Ohio probate and estate litigation matters. Call (419) 662-3100 or contact us online to schedule a consultation.