How the Bond Protects Beneficiaries
A personal representative's bond is not a private agreement between two parties. It names the State of Arizona as the obligee, acting for everyone interested in the estate.
This means any heir, devisee, or creditor who suffers a loss can make a claim against the bond.
Bonds shall name the state as obligee for the benefit of the persons interested in the estate and shall be conditioned upon the faithful discharge by the fiduciary of all duties according to law.
A.R.S. § 14-3606(A)(1)Sureties on the bond are jointly and severally liable with the representative and with each other. In practical terms, an interested person can pursue any one surety for the full loss.
The surety's address must appear on the bond. By signing, the surety consents to the jurisdiction of the court that issued letters.
Multiple Claims and Limitations
The bond does not become void after the first successful claim. It stays enforceable and can be pursued again until the total penalty is exhausted.
This protects multiple beneficiaries who may each suffer separate losses from different acts of mismanagement.
The bond of the personal representative is not void after the first recovery but may be proceeded against from time to time until the whole penalty is exhausted.
A.R.S. § 14-3606(A)(5)There is one important limitation. No one can bring an action against a surety when the underlying claim against the representative is already barred by a court ruling or the statute of limitations.
The surety's exposure tracks the primary obligor's liability. This rule applies equally to trust estates where a fiduciary bond has been posted.