Refunding bond
A beneficiary's written promise to give part of their share back if the estate turns out to need it.
What it means
Before paying a share, the personal representative takes a bond from the beneficiary and files it. If a debt, a tax or a claim appears afterwards, the beneficiary refunds their part of it.
In New Jersey this is not optional and not a courtesy: the statute says the representative shall take one on paying a share, and the bond is filed with the surrogate.
It is usually signed alongside a release, in which the beneficiary acknowledges they have been paid.
Why it matters
It is why a New Jersey estate can close with no court hearing and no accounting, and why a family looking for a closing decree may find none.
Being asked to sign one is ordinary rather than a maneuver, and refusing to sign does not by itself force an accounting.
When you are likely to meet it
- When the executor sends a refunding bond and release before paying you.
- When a surrogate's file contains bonds rather than a decree.
How this varies by state
Whether it is required, and where it is filed, is set by state law.