Since 1993, Scott Bond Services has been the market-leading provider of decedent debt bonds.

Our experience is a major asset as these obligations are often misunderstood within the surety bond underwriting community. We offer competitive pricing along with the same high level of service that thousands of bond clients have come to expect from Scott.

What is a Decedent Debt Bond?

Decedent debt bonds are often needed when heirs to an estate sell the estate’s real property before certain statutory time periods have elapsed. The timing of the sale can subject the title to various risks that could arise after the title search has been completed including unpaid estate or inheritance taxes, claims by creditors of the estate, and uncertainty surrounding probate of the will.

Because of these risks, the title insurer may require the funds in question be held in escrow until certain statutory time periods have elapsed or that a decedent debt bond be provided. The bond would protect the title insurer should a covered risk impair the marketability of the title.

Does the bond protect heirs/sellers from the risks referenced above?

No. The risks in question ultimately remain the responsibility of the heirs/sellers. The bond guarantees to the title company that the heirs/sellers will meet any potential obligations relative to these risks.

What is the advantage of the bond vs. the escrow option?

The advantage of the bond is that the heirs/sellers receive the proceeds from the sale much more promptly.

What size Decedent Debt Bond will I need?

Typically, the bond must be equal to the amount of proceeds being distributed to the sellers/heirs.

How much does a Decedent Debt Bonds cost?

Premiums are usually 1% of the bond amount.

How do I apply for a Decedent Debt Bond?

  • Option 1 – You may complete the “Get a Quote” form above & one of our bond specialists will contact you.
  • Option 2 – You may call Joanna Carson at 434-832-2293. She will be happy to walk you through the process & answer any questions.
  • Option 3 – You may download & complete an application below. You will need Adobe Acrobat. Once completed, please submit to Joanna Carson at jcarson@scottins.com.