5 Types of Insurance You Might Encounter During an Estate Administration
Many of us choose to purchase various types of insurance to protect us if something happens to our property. These insurance policies serve as a valuable safeguard to compensate us in the event that something goes wrong. This concept is no different when it comes to the administration of an estate. Trustees and personal representatives are in charge of protecting the assets of the estate; therefore, it is imperative that they utilize insurance policies where necessary.
5 Types of Insurance Used During an Estate Administration
The types of insurance policies that might be used by a trustee or a personal representative during an estate administration may include the following:
- Did the decedent own real estate in San Diego? If so, property insurance should be purchased to protect this valuable asset from property damage. Even if the decedent had property insurance on the property, the insurance company should be notified of his or her passing to ensure that coverage does not lapse.
- Did the decedent own a vehicle? If so, it is important to update the automobile insurance policy to ensure that it is current and held in the proper name.
- Did the decedent have a living trust? If so, in some cases it may be suitable for a trustee to give a bond with sureties. This insurance protects the beneficiaries of the trust in the event of trustee theft or negligence.
- The personal representative of an estate may need to obtain a fiduciary bond with sureties. This is to protect the beneficiaries or heirs of an estate.
- Did the decedent own valuable artwork, jewelry, antiques, or other items of personal property? If so, it is important to ensure that insurance is in place to protect these assets.
Fortunately, trustees and personal representatives can seek guidance from a capable attorney when it comes to determining what types of insurance policies are suitable during an administration. To learn more about this process, we encourage you to view our free guide, The Insider’s Guide to California Probate and Trust Administration.