Sureties and administration bond only applies to deceased who leave estate without a will or with a will but there is no appointment of executor and/or administrator.
In the case of administration (whether with or without Will annexed), the Administrator shall give security by bond for the due administration of the Estate.
Where the gross value of the Estate exceeds [Insert Amount], the Court shall require two (2) sureties, by bond in the prescribed form, in the amount at which the Estate within the jurisdiction is sworn.
However the Court may for any sufficient reason(s), increase or decrease the number of sureties or dispense with them and may reduce the amount of the bond, after deducting debts secured by mortgage or charge.
No surety shall be required on an application for a Grant of Administration:
(a) by a trust corporation, whether alone or jointly with an individual;
(b) by a servant of the Government acting in his official capacity; or(c) where the deceased left no Estate.
Order 71 Rule 34 of the Rules of Court 2012
In practice, an application to dispense with sureties is generally allowed by way of writ/OS and supporting affidavit. In exercising its discretion, the Court shall consider the standing of the parties, the nature of the property, the amount of the debts and the extent of the Administrator’s personal interest in the distributive share of the Estate.
On the other hand, a trust corporation which has obtained administration shall not be required to give security.
Probate and Administration Act 1959 (PAA 1959)
S35 PAA 1959 states that where the Administrator is entitled to the whole of the Estate after payment of the debts, sureties in the bond may ordinarily be dispensed with by the Registrar. The prescribed form of an Administration Bond is Form 171 of the Rules of Court 2012 and the signature of the Administrator and any surety (not being in either case, a corporation) must be attested by a Commissioner for Oaths.
S36 PAA 1959 governs that when Letters of Administration are granted to a creditor, he may be required to enter into a bond to pay the deceased’s debts rateably without preferring his own debt.
Note: For more informations on the Probate and Administration Act 1959, you may click on the link below:
http://www.commonlii.org/my/legis/consol_act/paaa19591972334/
