Bond for the Waiver of the Production of Letters Probate or Letters of Administration is required when a deceased person's estate requests a transfer of liquid assets (Certificates of Stock Ownership common, preferred, federal bonds, provincial bonds or municipal bonds as well as Mutual Fund Accounts, Investment Accounts and Bank Accounts) registered to and / or belonging to a deceased person without the production of Letters of Probate or Letters of Administration. In most situations it is more economical to pay the bond premium than to pay the Probate Fees.
In all cases, this request for posting of a Waiver of Probate bond is required by the financial institution (Issuing Stock Company, Transfer Agent, Mutual Fund Dealer, Investment Dealer, Banking Institution). Since the Last Will and Testament has not been Probated or Letters of Administration have not been granted, the ultimate beneficiary(ies) / heir(s) is required to provide supporting documentation to verify they are entitled to the estate asset(s) held by the financial institution requesting the bond.
Travelers Guarantee Company of Canada will require filing of our Affidavit & Indemnity Agreement duly executed by the applicant/principal (ultimate beneficiary(ies) / heir(s) entitled to share in the estate).
Bond Protects Against Claims
The Waiver of Probate Bond guarantees that the applicant/principal states that no other person, associate, firm or corporation other than the parties set forth under a Affidavit & Indemnity Agreement have any right, title, claim, equity or interest in or to the said security (or securities) or proceed thereof as a result of this transfer. Therefore, the applicant / principal, bound in agreement with the surety, will protect the financial institution against losses that may arise from any parties making a claim as a result of this transfer.
Cost for Bond
Typically, the cost is 2% of the current market value of the liquid assets to be transferred.
