What is a Release & Refunding Bond in Probate

 What is a Release & Refunding Bond in Probate

 

         Under New Jersey law it is the duty of the fiduciary [Executor or Administrator] to make arrangements to pay bills and other estate expenses and carry out instructions under the Will. NJSA 3B:23-24 provides the fiduciary shall take a Release and Refunding Bond from each beneficiary.

 

         The Attorney will prepare Release and Refunding Bonds and accountant or executor prepare an informal estate accounting. If a beni has any questions regarding the accounting, please call the executor directly since they have the bank records. The law office does not have bank records.

          Every beneficiary will need to sign their Release and Refunding Bond. If any beneficiary does not sign their release and refunding bond, then the estate funds cannot be distributed to anyone until approved by the Superior Court. An Accounting and Court complaint for approval must be filed under Rule 4:87-1. This would take many months. 

      We request all beneficiaries to immediately make arrangements to sign the Release and Refunding Bond in front of a notary, and return it to the office so all beneficiaries can receive their funds. Please also note under Federal Law and New Jersey law each beneficiary must certify they do not owe child support.   NJ Law makes child support a lien and to be paid by the estate by the Executor. The notary must sign on last page at end to be valid.

 

         The Release & Refunding Bond must be filed with the County Surrogate and a fee paid.