administration bond

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A guarantee by a third party, often an insurance company, to make good any loss arising if a person to whom letters of administration have been granted fails to deal properly with the estate. The court usually requires an administration bond as a condition of granting letters of administration only when the beneficiaries are considered to need special protection, e.g. when the administrator lives abroad or where there has been a dispute as to who should administer the estate.

Subjects: Law.

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