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Refunding Bond and Release

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By statute (N.J.S.A. 3B:23-24) an Executor or Administrator is required on paying a beneficiary his/her share of the estate, to take a Refunding Bond and Release from the beneficiary and to file the bond in the Surrogate’s Court. The statute requires that the Refunding Bond and Release be in the amount or value of the beneficiary’s share of the estate. The Refunding Bond and Release must be signed by the beneficiary before a Notary Public or attorney. If the beneficiary is a minor or incapacitated person, the Refunding Bond and Release must be signed by the guardian of the property.
The Refunding Bond and Release has a dual purpose:

Refunding – To refund to the Executor or Administrator out of his/her share of the estate his ratable part of any unpaid debts, owed by the testator or intestate, if there are no other assets to pay them.

Release - To discharge the Executor or Administrator of an estate of his/her duties upon distribution to the beneficiary of his/her share of the estate.

In an Administration that required a Surety Bond, the Administrator must request a Certificate of Release from the Surrogate at the time he/she files the Refunding Bond and Release. A Surety Bond will not be cancelled by the insurance agent unless the Certificate of Release is presented to the agent.

It is necessary to file the completed Refunding Bond and Release from each beneficiary of the estate with the Surrogate’s Court. The statutory fee for filing is $ 10.00 per bond and $ 5.00 for the Certificate of Release.

The Refunding Bond and Release can be found on this Web Site. Your attorney also will provide you with a Refunding Bond and Release upon request or prepare the Refunding Bond and Release for you.

  

IMPORTANT INFORMATION/INSTRUCTIONS FOR REFUNDING BOND AND RELEASE

Following this instruction sheet is the Refunding Bond and Release.  You may:

  • Type or neatly print the information required.
  • Photocopy and re-use the blank form, print out additional forms from our website, or receive additional forms by email, fax or mail by contacting the Surrogate’s Court ay (609) 989-6331.

No sooner than nine months after the date of death, each beneficiary or heir of the estate, including the Administrator/Executor, will need to fill out and sign, in front of a witness as well as a notary public or a New Jersey attorney, the Refunding Bond and Release.  Please note that the Refunding Bond and Release should be signed prior to any distribution or checks being released to a beneficiary.

If the Beneficiary/Heir is a minor, trust or is incapacitated:

  • If the beneficiary or heir is a minor, the Refunding Bond and Release must be signed by the guardian of minor’s property who has been appointed by the Surrogate’s Court.
  • If the beneficiary is a trust, the refunding Bond and Release must be signed by the trustee.
  • If the beneficiary or heir is an incapacitated person, the Refunding Bond and Release must be signed by the guardian of the person and property of the incapacitated person who has been appointed by the Superior Court.

Filing Instructions: (See sample form following these instructions) 

  • Indicate at the top of the form which state and county this form is being filed in.
  • The first line:  List the name of the beneficiary (the person receiving the asset)( term the OBLIGOR).  The asset could be a piece of property (personal or real), cash, stocks, automobile.
  • The second line:  Give the address of the beneficiary.
  • The third line:  List the name of the Administrator/Executor (term the OBLIGEE) with his/her address.
  • The fifth line:  The total value of cash and property received by the beneficiary from the estate which could include cash, bank accounts, stock, property (personal and real), automobiles.  However, it does not include assets that do not pass through the estate, such as joint accounts or assets with designated beneficiaries other than the estate.
  • In the section beginning with THE CONDITION OF THE ABOVE OBLIGATION should include what assets the beneficiary, with description, has received includes cash, bank accounts, stock, property (personal and real), automobiles.  However, it does not include assets that do not pass through the estate, such as joint accounts or assets with designated beneficiaries other than the estate.
  • The beneficiary must sign before a witness and a notary public who will give the expiration date of their commission by the state and when required by law place their stamp and/or seal.
  • File the original signed, witnessed and notarized Refunding Bond and Release to the Mercer County Surrogate’s Court with a check in the amount of $10.00 per bond form made payable to Mercer County Surrogate.  
  • If there was a Surety Bond required at the time of application you will need to request a Certificate of Release from the Surrogate Court’s to give to the insurer so that the Surety Bond may be properly cancelled.  There is a      $ 5.00 fee for this Certificate.  Please make the check payable to the Mercer County Surrogate.
  • Should you need a “filed copy” of the Refunding Bond and Release you must enclose it with the filing of the original Refunding Bond and Release along with a self-addressed envelope.

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