Bond of Caution

Why is a Bond of Caution Important?

A Bond of Caution is a special form of insurance offered to practitioners in Scotland who are dealing with intestacies and protects beneficiaries (and creditors) against any losses caused by maladministration by the executor dative. The bond may need to have be obtained before the Sheriff Clerk will grant Confirmation.

Confirmation is a legal document issued by the court which provides the executors with the authority to deal with the deceased’s assets and enables estate property and funds to be released. Prospective executors will be required to prepare the estate inventory, detailing all assets held by the deceased at the date of death.

Finders International are long-standing, trusted agents of Aviva, and can help obtain Bonds of Caution on your behalf. We will be required to verify the family tree to ensure all heirs are accounted for prior to submission to the insurers for their consideration.

Bonds should be obtained when the intestacy is valued over £36,000 gross and the estate isn’t exhausted by legal or prior rights (as set out by Scots law); or when dealing with small estates valued at sub-£36,000 where a sheriff clerk’s office has not prepared the inventory.

A Bond of Caution does not offer protection to executor datives or mitigate their liability to ensure correct distribution of the estate. Executors, therefore, may wish to seek executor cover once the family tree has been verified and confirmed. This can be offered as a combined product for comprehensive cover.

Missing beneficiary insurance should still be sought when there is a specific missing heir to an estate and when all reasonable lines of enquiry have been exhausted.

Why is a Bond of Caution important in Scotland?

A Bond of Caution is a special form of insurance offered to practitioners in Scotland who are dealing with intestacies and protects beneficiaries (and creditors) against any losses caused by maladministration by the executor dative. The bond may need to be obtained before the Sheriff Clerk will grant Confirmation.

What is Confirmation, and why is it necessary for executors?

Confirmation is a legal document issued by the court which provides the executor with the authority to deal with the deceased’s assets and enables estate property and funds to be released. Prospective executors will be required to prepare the estate inventory, detailing all assets held by the deceased at the date of death.