Short answer

Under Oregon law, a court can require a bond from a personal representative, but a bond can sometimes be waived if the people with legal interest in the estate agree or if the court orders no bond. Whether a bond is required depends on the type of appointment, the wishes of interested persons (heirs or beneficiaries), and the court’s evaluation of the estate’s circumstances.

Detailed answer — how bonds work in Oregon probate

What is a bond and why is it required?

A fiduciary bond (often called an executor’s or administrator’s bond) is a type of insurance that protects estate creditors and heirs against losses caused by misconduct or mistakes by the personal representative. The probate court generally wants some protection when someone is put in charge of collecting assets, paying debts, and distributing the estate.

Who sets the bond requirement?

The court sets bond requirements when it appoints a personal representative. The precise statutory framework for probate appointments and administration is found in the Oregon Revised Statutes (see the probate and administration chapters):

• Oregon Revised Statutes, Chapter on Estates of Deceased Persons (ORS Chapter 111)
• Oregon Revised Statutes, Chapter on Administration of Estates (ORS Chapter 113)

Can interested persons waive the bond?

Yes — in many cases interested persons (for an intestate estate, that generally means the heirs) can agree to waive the bond requirement. A waiver should be made in the manner the court requires (usually written and filed with the probate petition). If all required parties who have an interest in the estate sign a proper waiver and the court accepts it, the court may dispense with the bond.

Important points:

• The waiver typically must be unanimous among the persons whose rights the bond is meant to protect. If even one interested party objects, the court may require a bond.
• The court has discretion. Even with a waiver, the judge can still require a bond if the court believes the waiver is not in the estate’s best interest (for example, if there are unresolved creditor claims or disputes among heirs).
• When there is a will that expressly waives bond for the nominated personal representative, courts often enforce that waiver; with intestacy (no will), waivers normally come from the heirs rather than a document in the decedent’s name.

When will the court refuse a waiver and require a bond?

Court may require a bond if:

• There are disputes among heirs or suspected misconduct;
• The estate has significant assets, business interests, or complex liabilities;
• Creditors’ claims or potential claims exist that make protection of the estate prudent;
• An interested person asks the court to require a bond for added protection.

How is the bond amount determined and who pays?

The court sets the bond amount based on factors such as the estimated value of the estate and foreseeable liabilities. The personal representative normally obtains the bond and pays any premium (unless the court orders otherwise). Bonds are usually obtained from a surety company; in some cases the court may permit a cash deposit in lieu of a surety bond.

Practical example (hypothetical)

Suppose a person dies without a will in Oregon, leaving three adult children who are the estate’s intestate heirs. One child petitions the court to be appointed administrator. If the other two children sign and file a written waiver of bond agreeing that the appointed sibling need not be bonded, the court will usually accept those waivers and appoint the sibling without requiring a bond — unless the judge sees a reason to require protection (large estate value, creditor concerns, or a dispute).

Risks of waiving a bond

When heirs waive a bond, they remove an extra layer of protection against mismanagement. If the personal representative later mishandles estate assets, heirs can sue the personal representative personally, but recovering losses can be harder and slower than having a surety claim the bond. Consider this trade-off carefully, especially for estates with substantial assets or potential creditor claims.

Alternatives to a full bond

• Limited bond for a portion of the estate value
• Court-ordered conditions or closer court supervision
• Appointment of a professional fiduciary or bank as personal representative (often bonded by the institution)
• Cash deposit in the court registry in lieu of a surety bond (if court permits)

Where to look in the statutes and court rules

For statutory language and procedural rules, consult the relevant chapters of the Oregon Revised Statutes and local probate court rules. See the legislature’s collection for probate:

• ORS Chapter 111 (Estates of deceased persons)
• ORS Chapter 113 (Administration of estates)

Helpful Hints

• Get written waivers: If heirs want to waive bond, get a written waiver signed by everyone who must consent and file it with the probate petition.
• Don’t assume waiver is automatic: The court can still require a bond in the public interest or to protect creditors.
• Consider estate size and creditor exposure: For large or contested estates, a bond provides practical protection; heirs should weigh this against the cost of the bond premium.
• Ask about alternatives: If bond cost is a concern, ask the court about limited bonds, cash deposits, or corporate fiduciaries.
• Check local court procedures: Probate practices vary by county; contact the county probate clerk’s office or check local rules for required forms and filing steps.
• Document everything: Keep records of waivers, communications, and financial transactions in case questions arise later.
• When in doubt, consult a lawyer: An attorney can explain local practice, the likely bond amount, and whether a waiver is advisable for your situation.