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Financial Forensic Report 4.5.2021


THE WHEN AND WHAT OF PROBATE BONDS

If the term “probate bond” sounds a little intimidating, don’t worry. Once you’re comfortable with what probate is and what a bond is, the idea of a probate bond will fall into place. Fortunately, we’re here to help you navigate the confusion, as among the variety of improprieties Financial Forensic Services researches, probate disputes are common. Allow us to shed a little light on the subject of probate bonds …

First of all, probate is the process of administering a deceased individual’s estate through court proceedings. If the deceased had a will, the probate court will grant probate to an executor, whose job is to carry out the last will and testament of the individual who passed away. One of the executor’s main duties is to distribute the property and assets of the deceased’s estate.

If there’s no will, the court will appoint an administrator instead of an executor. The administrator oversees distribution of property and assets. Instead of doing so in accordance with the wishes of the person who has passed away, however, the administrator will do so in accordance with the laws in that area’s jurisdiction because the wishes of the deceased are unknown.

So, that’s a little bit about what probate is and how it works. Now, let’s take a look at what a bond is. A surety bond is essentially a fiduciary promise in which one party agrees to meet an obligation but is on the hook financially if he or she fails to meet the obligation.

In the case of probate, say you’re an executor of a will. The judge might require you to get a probate bond, which means there will be money to compensate heirs and creditors if you are negligent or fraudulent in your dealings with the estate such as taking some of the money to pay for your own expenses. For an estate that’s worth $1 million, it might require $5,000 to acquire a bond for $1 million in coverage. If something goes wrong, the bond company is responsible for paying out the full value of the estate to heirs and creditors.

Needless to say, it’s a pretty risky situation for any company to put up the money for a probate bond, which is why they’re as stringent about it as any other lender would be about loaning money to a private party. Probate judges won’t always require a probate bond, but it can be a challenge when they do. This is due to the money required to obtain the bond in the first place, but you can’t access the estate as executor or administrator until the bond is issued.

Even after you’ve obtained a bond, you may feel pressure to wrap things up quickly so that you don’t have to pay new premiums on the bond when it comes up for renewal after the first year. Another challenge is the time it takes to actually obtain the bond, even if you qualify. While that process is underway, the estate is just sitting there.

Fortunately, most wills that are drafted by an attorney can include clauses that waive the requirement of a probate bond. As long as the will names the executor, and that executor is the one submitting the will to probate, there won’t be a bond requirement. In any other case, it depends on the judge, the heirs, and whether there is any unsecured debt that the creditors are eyeing. 

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LOVE

Love is the one treasure that multiplies by division: it is the one gift that grows bigger the more you take from it. It is the one business in which it pays to be an absolute spendthrift; give it away, throw it away, splash it over, empty your pockets, shake the basket, turn the glasses upside down, and tomorrow you will have more than ever!

The Scriptures tell us that the very essence of God is love…always reaching out to touch the needs of people. But love fulfilled must be received. Loving and caring for one another is part of His plan. 

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REAL COURT CASE NAMES

United States  v.  Vampire Nation

United States v.  2,507 Live Canary Winged Parakeets

Fortner  v.  ATF Agents Dog 1, Cat 2, and Horse 3

The Smelly Bee  v.  Dees

United States  v.  Fifty-Three Eclectus Parrots

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Testimonial

“Joe spends the time to understand the problem from the client’s perspective and from the legal perspective. He is intelligent, tenacious, willing to work as hard as it takes, thorough, well-informed, and just awfully good at what he does.”

Thomas E. Root, 
Attorney

2014-11-11T18:20:05+00:00

Thomas E. Root, 
Attorney

“Joe spends the time to understand the problem from the client’s perspective and from the legal perspective. He is intelligent, tenacious, willing to work as hard as it takes, thorough, well-informed, and just awfully good at what he does.”

“Joe Dickerson is the industry standard. You can measure the rest by what he does, and I say that without equivocation. Joe has incredible insight into the dark world of fraud. He understands the devious ways in which people perpetrate white-collar crime.”

Jan Schlichtman
, Attorney at Law

2014-11-11T18:20:55+00:00

Jan Schlichtman
, Attorney at Law

“Joe Dickerson is the industry standard. You can measure the rest by what he does, and I say that without equivocation. Joe has incredible insight into the dark world of fraud. He understands the devious ways in which people perpetrate white-collar crime.”

“They went overboard in providing excellent service. I was very pleased with what they provided for me as their end product. Financial Forensic Services really understands how a case needs to be put together in order to be presented to a jury. Their PowerPoint presentation tied everything together. It was thorough, it was concise, and it got the job done.”

Jim Thomas
, Prosecuting Attorney

2014-11-11T18:21:32+00:00

Jim Thomas
, Prosecuting Attorney

“They went overboard in providing excellent service. I was very pleased with what they provided for me as their end product. Financial Forensic Services really understands how a case needs to be put together in order to be presented to a jury. Their PowerPoint presentation tied everything together. It was thorough, it was concise, and it got the job done.”

“Joe is the most competent investigator I’ve ever found. He has rare ability to find hidden assets. Others claim it, Joe has it. He understands the Rules of Evidence, he knows how to talk to people to develop a fact pattern, and he has a sixth sense for fraud. Joe has unquestioned integrity and delivers value for his services.”

Andrew Quiat
, Attorney

2014-11-11T18:12:51+00:00

Andrew Quiat
, Attorney

“Joe is the most competent investigator I’ve ever found. He has rare ability to find hidden assets. Others claim it, Joe has it. He understands the Rules of Evidence, he knows how to talk to people to develop a fact pattern, and he has a sixth sense for fraud. Joe has unquestioned integrity and delivers value for his services.”

“As an environmental law firm, we use Joe Dickerson to locate prior business owners and do corporate genealogies. He is persistent, that’s the key to a good investigator, and he has a knack for understanding how people move money and do business. That tells him what rocks to look under. Joe is vastly superior to other investigators in two ways: he lets you know what’s going on and he’s honest with you, because he tells you if there’s really anything there worth pursuing. He is unusually thorough and creative finding people. Joe has earned his fee every time.” “If the information is to be found, then I believe that they will find it. Their service enabled me to do a much better job for my client.”

Tim Gabelhouse
, Attorney at Law

2014-11-11T18:20:41+00:00

Tim Gabelhouse
, Attorney at Law

“As an environmental law firm, we use Joe Dickerson to locate prior business owners and do corporate genealogies. He is persistent, that’s the key to a good investigator, and he has a knack for understanding how people move money and do business. That tells him what rocks to look under. Joe is vastly superior to other investigators in two ways: he lets you know what’s going on and he’s honest with you, because he tells you if there’s really anything there worth pursuing. He is unusually thorough and creative finding people. Joe has earned his fee every time.” “If the information is to be found, then I believe that they will find it. Their service enabled me to do a much better job for my client.”

“Financial Forensic Services did an excellent job in the way they executed my case. They were very straightforward. They stated what they could do for us and they did it. And, from a personal standpoint, they are excellent. Both my wife and I felt very comfortable working with them.”

Michael Whalen, 
Businessman

2014-11-11T18:21:13+00:00

Michael Whalen, 
Businessman

“Financial Forensic Services did an excellent job in the way they executed my case. They were very straightforward. They stated what they could do for us and they did it. And, from a personal standpoint, they are excellent. Both my wife and I felt very comfortable working with them.”

” I was prepared to dismiss a federal case involving millions of dollars against a local individual who claimed to have no substantial assets. After your staff hit the records and delved into the transactions behind the transactions, you discovered the individual to actually be worth a few million dollars. We continued the case to conclusion. We were also very happy with the financial background examinations you conducted of the former directors of two failed national banks. The heart of any civil case is whether there is a pot at the end of the lawsuit. You were our lucky leprechaun in finding such pots.”

R. Michael Sentel
, Former Section Chief Legal Division, FDIC

2014-11-11T18:13:08+00:00

R. Michael Sentel
, Former Section Chief Legal Division, FDIC

” I was prepared to dismiss a federal case involving millions of dollars against a local individual who claimed to have no substantial assets. After your staff hit the records and delved into the transactions behind the transactions, you discovered the individual to actually be worth a few million dollars. We continued the case to conclusion. We were also very happy with the financial background examinations you conducted of the former directors of two failed national banks. The heart of any civil case is whether there is a pot at the end of the lawsuit. You were our lucky leprechaun in finding such pots.”

“When I was general counsel for First Interstate Bank, I used Joe Dickerson for locating assets, investigating behavior and asset discovery. He did excellent work and always got the information I needed without compromising the bank in any way. He’s more thorough and kept in better touch with me than other investigators. I’d give him a grade of 96 or 97 out of 100.”

Frank Brainerd, Retired
Banker/Attorney

2014-11-11T18:20:20+00:00

Frank Brainerd, Retired
Banker/Attorney

“When I was general counsel for First Interstate Bank, I used Joe Dickerson for locating assets, investigating behavior and asset discovery. He did excellent work and always got the information I needed without compromising the bank in any way. He’s more thorough and kept in better touch with me than other investigators. I’d give him a grade of 96 or 97 out of 100.”