Reforming the state’s antiquated probate laws could have a major impact on the region’s legal community, not to mention the thousands of residents who deal with estate, conservator or guardianship matters within the probate court system each year. But the initial proposal put the reforms at odds with the surety bond industry, which currently plays an important — and lucrative — role in the probate process.
Many thought it would be over after the 300-page reform bill — known as the Uniform Probate Code — was approved by the House in July. But the measure stalled in Senate, partly due to concerns expressed by the surety industry.
The reform measure as approved by the House would have created an “opt in” model for surety bonds in uncontested probate cases. As a result, a judge or a party to an estate probate matter would have to request that a surety bond be posted. Surety bonds are a type of insurance policy meant to cover parties if the executor of a will absconds with the estate’s assets. They are typically priced based on the size of the estate, say $10 per $1,000 in estate assets. The cost is usually absorbed by the estate.
The surety bond industry wasn’t pleased with the possibility of losing business through the opt-in reform and paid the Boston firm Johnson Haley LLP $10,000 to speak upon their behalf at the Capitol. The industry lobbied to have surety bonds required as the default, unless all the parties in the case agree to forgo it.
Bill Peterson, vice president and public affairs officer of Chicago-based CNA Surety: "his industry is supportive of the Uniform Probate Code, just not specific proposal as it relates to surety bonds."
Full Article and Source:
Lawyers Pine For Probate Improvement - Measure runs afoul of bond industry
Many thought it would be over after the 300-page reform bill — known as the Uniform Probate Code — was approved by the House in July. But the measure stalled in Senate, partly due to concerns expressed by the surety industry.
The reform measure as approved by the House would have created an “opt in” model for surety bonds in uncontested probate cases. As a result, a judge or a party to an estate probate matter would have to request that a surety bond be posted. Surety bonds are a type of insurance policy meant to cover parties if the executor of a will absconds with the estate’s assets. They are typically priced based on the size of the estate, say $10 per $1,000 in estate assets. The cost is usually absorbed by the estate.
The surety bond industry wasn’t pleased with the possibility of losing business through the opt-in reform and paid the Boston firm Johnson Haley LLP $10,000 to speak upon their behalf at the Capitol. The industry lobbied to have surety bonds required as the default, unless all the parties in the case agree to forgo it.
Bill Peterson, vice president and public affairs officer of Chicago-based CNA Surety: "his industry is supportive of the Uniform Probate Code, just not specific proposal as it relates to surety bonds."
Full Article and Source:
Lawyers Pine For Probate Improvement - Measure runs afoul of bond industry
4 comments:
An important and lucrative role?
Nothing's important in probate court unless it's lucrative, unfortunately.
It's all about money - vulnerable and helpless people are pushed aside for the almighty dollar and those who pursue it.
Such a sad state of affairs....
It's always about the money.
Very dangerous: Lawyers are involved in the wording and the process of writing laws that govern themselves in probate mattters.
You're right Sue. It's just a shame that people of conscience don't run the world instead of people of greed.
This is why we must never falter in our quest for reform. Without advocates and people who care about others' plights, the greedy would rule supreme.
Larcenous lawyers MUST be bonded!
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