Does Bankruptcy Disqualify me from being Bonded
12/07/2007 - Bonds - State: MI #13513
My father recently passed away. While he did leave a will, the executor named has also passed away. I have asked to be named executor for the estate. The law firm (in Ohio - I live in Michigan - my dad lived in Ohio) has informed me that because I filed for bankruptcy (over 21 years ago due to a divorce where I got the 4 children, the bills (because my x-husband could not be found and had to choose between providing for the kids or paying the bills)they would not submit my application for bonding. They stated that I was not bondable. This does not make sense to me. I have worked at the same location for over two decades, bought a home four years ago, and have a decent credit rating. Should I argue this point with the firm?
You might check with the bonding company on requirements, but it is possible that a bankruptcy would disqualify an executor. The following is an OH statute:
(1) Unless otherwise provided by law, every fiduciary, prior to the issuance of his letters as provided by section 2109.02 of the Revised Code, shall file in the probate court in which the letters are to be issued a bond with a penal sum in such amount as may be fixed by the court, but in no event less than double the probable value of the personal estate and of the annual real estate rentals which will come into such person’s hands as a fiduciary. The bond of a fiduciary shall be in a form approved by the court and signed by two or more personal sureties or by one or more corporate sureties approved by the court. It shall be conditioned that the fiduciary faithfully and honestly will discharge the duties devolving upon him as fiduciary, and shall be conditioned further as may be provided by law.
(2) Except as otherwise provided in this division, if the instrument creating the trust dispenses with the giving of a bond, the court shall appoint a fiduciary without bond, unless the court is of the opinion that the interest of the trust demands it. If the court is of that opinion, it may require bond to be given in any amount it fixes. If a parent nominates a guardian for his child in a will and provides in the will that the guardian may serve without giving bond, the court may appoint the guardian without bond or require the guardian to give bond in accordance with division (A)(1) of this section.
(3) A guardian of the person only does not have to give bond unless, for good cause shown, the court considers a bond to be necessary. When a bond is required of a guardian of the person only, it shall be determined and filed in accordance with division (A)(1) of this section. This division does not apply to a guardian of the person only nominated in a parent’s will if the will provides that the guardian may serve without giving bond.
(4) When the probable value of the personal estate and of the annual real estate rentals that will come into the guardian’s hands as a fiduciary is less than ten thousand dollars, the court may waive or reduce a bond required by division (A)(1) of this section.
(B) When an executive director who is responsible for the administration of children services in the county is appointed as trustee of the estate of a ward pursuant to section 5153.18 of the Revised Code and has furnished bond under section 5153.13 of the Revised Code, or when an agency under contract with the department of mental retardation and developmental disabilities for the provision of protective service under sections 5123.55 to 5123.59 of the Revised Code is appointed as trustee of the estate of a ward under such sections and any employees of the agency having custody or control of funds or property of such a ward have furnished bond under section 5123.59 of the Revised Code, the court may dispense with the giving of a bond.
(C) When letters are granted without bond, at any later period on its own motion or upon the application of any party interested, the court may require bond to be given in such amount as may be fixed by the court. On failure to give such bond, the defaulting fiduciary shall be removed.
No instrument authorizing a fiduciary whom it names to serve without bond shall be construed to relieve a successor fiduciary from the necessity of giving bond, unless the instrument clearly evidences such intention.
The court by which a fiduciary is appointed may reduce the amount of the bond of such fiduciary at any time for good cause shown.
When two or more persons are appointed as joint fiduciaries, the court may take a separate bond from each or a joint bond from all.
Effective Date: 09-10-1991
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12/07/2007 - Category: Bonds - State: MI #13513
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