Short answer

Under Montana law, the court will generally require a bond from a person appointed as administrator of an intestate estate to protect estate creditors and heirs. The court has statutory authority to require or set the amount of the bond and, in many cases, to waive or reduce the bond when certain conditions are met. See Montana’s probate statutes for full text: Mont. Code Ann. Title 72 (Probate and Trust Law).

Detailed answer

What is a probate bond?

A probate bond (sometimes called a surety bond or fiduciary bond) is a form of insurance the court requires an administrator to post to guarantee faithful performance of duties. If an administrator misappropriates estate assets, fails to pay creditors, or otherwise breaches duties, the bond provides a source of recovery for the estate and interested parties.

Why Montana courts typically require a bond

The probate court’s basic job is to protect estate property while it is being collected, marshaled, and distributed. Requiring a bond is one way the court adds a financial safeguard for creditors and heirs against mismanagement. The court’s authority and procedures for appointing administrators and addressing fiduciary obligations are set out in the Montana Probate statutes (Title 72). For the exact statutory text and procedures, consult Mont. Code Ann. Title 72.

When will the court set the bond amount?

The court normally sets bond based on the size and complexity of the estate and the foreseeable exposure to loss. Factors the court may consider include known debts, liquidity of assets, whether assets will be held for a long time, the relationship of the administrator to the decedent, and whether there are disputes among heirs or creditors. The bond amount may be greater if the estate holds cash, securities, or other high-liquidity assets that could be at greater risk.

Can the bond requirement be waived or reduced?

Yes. Montana law and court practice allow the court discretion to waive or reduce the bond in appropriate circumstances. Common situations where a court may waive or reduce bond include:

• The proposed administrator is the surviving spouse or sole heir and there is little risk of diversion of estate assets.
• All interested parties (heirs and creditors) agree in writing to waive the bond requirement.
• The estate is small and contains few liquid assets, or the estate’s assets are already secured in a manner that reduces risk.
• The proposed administrator posts alternate security acceptable to the court (for example, a secured instrument or escrow arrangement) instead of a commercial surety bond.

To request waiver or reduction, the proposed administrator (often with the help of an attorney) files a motion or statement with the probate court explaining the basis for waiver and attaching any written consents from heirs or creditors. The court will evaluate the request and may hold a hearing. If the court is not satisfied that the estate and beneficiaries are adequately protected, it can require a bond despite agreements among parties.

What if someone objects to a waiver?

Any interested person (creditor, heir, or other interested party) can object. The court will consider objections and may require bond or impose conditions. If you are an objecting party, provide the court with specific reasons why waiver would pose a risk (e.g., history of mismanagement, contested claims, or large unsecured debts).

How to get the bond

When a bond is required, it is usually obtained from a surety company through an insurance or bonding agent. The premium depends on the bond amount and the proposed administrator’s creditworthiness. The surety issues the bond, files proof of bond with the court, and then the administrator proceeds with probate duties. In some cases, the court allows alternatives such as depositing cash with the court or posting other security.

Practical steps for a proposed administrator in Montana

1. Review the decedent’s assets and debts to estimate exposure and likely bond amount.
2. Talk to heirs and creditors early to see whether they will agree to waive or reduce bond.
3. Contact the local probate court clerk to confirm procedural requirements for bond filings and any local rules.
4. If bond is required, contact a bonding agent or insurance broker to get quotes and arrange issuance.
5. If seeking waiver or reduction, file the required motion or affidavit with the court, attach consents, and be prepared to explain why waiver is appropriate.

Where to read the statute

Montana’s probate rules and statutes are in Mont. Code Ann. Title 72. For the court’s statutory framework and specific provisions about appointment of personal representatives, bonds, and related procedures, see: Mont. Code Ann. Title 72.

Disclaimer: This article provides general information about Montana probate practice and is not legal advice. It does not create an attorney-client relationship. For advice about a particular estate or to file documents in court, consult a licensed Montana attorney.

Helpful Hints

• Ask the probate clerk for local forms and fee schedules — procedures can vary by county.
• Get a written waiver from all heirs and creditors if you hope to avoid a bond; courts give that weight but can still require a bond if they think it necessary.
• If you must buy a surety bond, shop multiple bonding agents — premiums and underwriting vary.
• Consider alternative security (cash deposit or court-approved security) if you cannot obtain a commercial bond.
• If estate assets are illiquid (real estate, business interests), explain to the court how you will safeguard them — that may lower bond needs.
• When in doubt, consult a probate attorney early — an attorney can file the waiver motion properly and advise on bond amount and alternatives.