Bonds of Security / Court Bonds

A security bond is used when Master of the High Court requires security where he appoints a person to be a custodian / responsible person for someone else’s assets.

The bond of security protects the estate from any negligent act from the appointed person.

It is a demand bond, so if the security is called up by the Master of the High Court it must be paid immediately.

      • Liquidation bonds: A Liquidator is appointed on insolvent estates, the liquidator will track down all the assets belonging to the estate, sell them and pay the creditors.
      • Executor Bonds: An Executor is appointed on a deceased estate, the purpose of the appointment is to distribute the assets of the deceased to the beneficiaries in terms of a will (if it exists).
          Who requires Executors bonds?

          • Attorneys – if they have reached their limit with the AIIF (R20 000 000 cumulative, a bond exceeding R5 000 000)
          • Accountants
          • Administrators of deceased estates
  1. Curator Bonds: Curator Bonds matter relating to incapacitated persons’ estates. Also in The Prevention of Organised Crime Act – where someone has unlawfully gained in terms of the Act; application can be brought to freeze the assets and for the recovery of the assets.
  2. Asset Insurance: PWV North services all your asset insurance needs, you can now place all matters relating to estates with PWV North, we are only a phone call away.
  3. Trustee Bonds
    • Road Accident Fund Trust

    Road Accident Fund Trust beneficiaries receive a pay out from the RAF, due to the fact that they have been involved in an accident and have possible limited employment opportunities or are minors. These funds are to be protected and a trustee is appointed to do this. To protect the trust against the negligence of the trustee the master requires a bond of security for the amount that was paid to the trust.

    • Medical Malpractice Trusts

    A Medical Practitioner who has failed to foresee the possibility of harm being suffered by his patient in circumstances where another reasonable practitioner in the same position would have foreseen the possibility of harm occurring and would have taken the necessary steps to avoid or prevent it, is guilty of Medical Negligence. Where money is paid out into a trust, the trustee will be required to provide a bond of security before appointment.

Legal Documents
Close
Legal Documents
Close

Loading...