Do I Have to Post a Bond to Serve as Administrator of an Intestate Estate in Alabama, and Can That Requirement Be Waived?

Short answer: In Alabama, the probate court generally requires an administrator appointed for an intestate estate to give a fiduciary bond to protect the estate’s creditors and beneficiaries. Under certain limited circumstances the court may allow a waiver or reduction of the bond, but waivers are not automatic and usually require either a statutory exception, unanimous written consent of interested parties and court approval, or a court finding that a bond is unnecessary.

Detailed answer — how Alabama law treats administrator bonds

When someone dies without a valid will (intestate), the probate court appoints an administrator to gather assets, pay debts and taxes, and distribute the estate to heirs. To protect the estate while the administrator manages assets, probate courts typically require the administrator to post a fiduciary bond (also called an administrator’s bond or probate bond).

Alabama’s statutes governing wills, administration, and probate are contained in the Code of Alabama, Title 43. Those statutes establish the probate court’s authority to require a bond and to set its amount and conditions. See the Code of Alabama, Title 43 (Wills, Administration and Probate):
https://www.legislature.state.al.us/codeofalabama/1975/43/.

Key practical rules you should expect in Alabama:

The court will usually require an administrator to give a bond before issuing letters of administration. The bond protects the estate against loss caused by mismanagement, theft or mistakes.
The amount of the bond is set by the probate judge based on the value of the estate’s assets and expected receipts. The court may require a bond equal to the value of personal property and anticipated income from the estate.
Bonds are typically provided through a surety company (a probate bond company) that issues the bond for a premium. In some cases the court may allow a personal surety (one or more individuals who pledge to be liable) if they meet the court’s requirements.

When can the bond be waived or reduced?

There are limited ways the requirement can be avoided or lessened:

Will-based waiver (not applicable in intestacy): If a valid will names an executor and the will expressly waives the bond, the court generally honors that waiver. (That applies to executors under a will, not to administrators in intestate proceedings.)
Unanimous written consent of heirs or interested parties: In some cases where all persons entitled to distribution of the estate sign a written request or waiver and submit it to the probate court, the judge may approve a reduced bond or dispense with it. Because an intestate estate by definition lacks a will, the court will look to interested persons (heirs, creditors) and may require proof that their rights won’t be harmed by waiving the bond.
Small-estate or limited-administration procedures: If the estate qualifies for simplified probate or small-estate procedures under Alabama law, the court may not require the same bond or any bond at all. Whether an estate qualifies depends on the size/type of assets and the availability of simplified procedures in the county. (Check local probate rules.)
Judge’s discretion: A probate judge has discretion to set, reduce, or waive a bond after considering the estate’s assets, the administrator’s relationship to the decedent, the financial strength of any proposed surety, and whether interested parties object. The court will always balance the need to protect the estate against the burdens of bonding an administrator.

What happens if an administrator does not post the bond?

If the appointed administrator fails to post the required bond within the time set by the court, the court can refuse to issue letters of administration, withdraw the appointment, or remove the administrator and appoint someone else. The bond is a condition of holding fiduciary powers; without it, the administrator usually cannot legally collect estate property or act on behalf of the estate.

Practical steps to seek a waiver or reduce the cost

Talk with the probate clerk early: Ask the clerk what the county practice is for administrator bonds, typical bond amounts, and whether the county has a small-estate form or limited-administration option.
Get heirs to sign a written waiver or consent: If all heirs and interested creditors are willing to sign a written waiver consenting to appointment without bond (or consenting to a reduced bond), present that to the probate judge. Courts prefer written, notarized consents.
Provide information about estate assets and liabilities: A transparent inventory and proposed plan can persuade a judge to reduce or waive a bond if the estate is essentially a house with mortgage, minimal personal property, or otherwise secure.
Consider a surety bond company: If a bond is required, shop with reputable surety companies that provide probate bonds. The cost is a percentage (premium) of the bond amount and is paid from the estate (or personally by the administrator if required).
Ask about alternatives: In some cases the court may accept a secured bond (backed by property) or a family member willing to act as a personal surety with adequate assets.

Common questions and answers

Q: Can my mother’s surviving spouse automatically avoid posting a bond?

A: No automatic exemption exists merely because someone is a surviving spouse. The judge may consider family relationship when deciding whether to reduce or waive a bond, but a formal waiver by all heirs or a statutory exception is usually required.

Q: If I sign a personal guarantee, do I still need a surety company bond?

A: The court may accept a personal surety in lieu of a corporate surety if the individual surety meets the court’s requirements. Many probate judges prefer corporate surety bonds because they transfer the risk to the bonding company.

Q: Who pays for the bond premium?

A: The premium for a probate bond is typically paid from estate funds. If estate funds are insufficient, an administrator may be asked to pay personally or find another arrangement approved by the court.

Helpful Hints

Start at the county probate office: Procedures and local judge preferences vary. The probate clerk can tell you what paperwork and timelines to expect.
Gather heirs’ written consents if possible: A signed, notarized waiver from all heirs reduces friction and increases the chance of a bond reduction or waiver.
Prepare an inventory estimate: Knowing the values of real and personal property helps the judge set a reasonable bond amount or see that a bond may not be necessary.
Ask whether the estate qualifies for simplified administration: Small-estate rules can eliminate the need for a formal administration and therefore the bond requirement in some situations.
Shop for bond quotes: Obtain multiple surety quotes; premiums vary and a lower premium saves the estate money.
Keep documentation: File all waivers, consents and communications with the court so the record shows interested parties had notice and consented.
Consult a probate attorney if there is disagreement: If heirs or creditors object to a waiver or if the estate is complex, a lawyer can advise and represent you in court.

Where to look in Alabama law: The probate rules and administrator bond authority are part of the Code of Alabama, Title 43 (Wills, Administration and Probate). For the text of the statutes and local code sections, see the Code of Alabama, Title 43 online:
https://www.legislature.state.al.us/codeofalabama/1975/43/. For county-specific practice, contact the local probate court.

Disclaimer: This article is for general information only and does not constitute legal advice. I am not a lawyer. For advice about a particular estate or to request help preparing documents or petitions, consult a licensed Alabama probate attorney or the probate court clerk in the county where the decedent lived.