Question

When Phyllis passed away, she left an inheritance for her three children, including ten ounces of gold for each of them. To execute her will, her lawyer hires another attorney, Williams, to oversee the careful distribution of the gold. The court requires a bond to assure Williams will conduct himself honestly. Which type of bond has the court required?

A) Surety bond
B) Savings bond
C) Corporate bond
D) Municipal bond

Answer 1

The court has required Williams to obtain a surety bond to assure his honest conduct in distributing Phyllis's inheritance to her three children.

Step-by-step explanation:

The type of bond that the court has required Williams to obtain to ensure the careful distribution of Phyllis's inheritance is a surety bond. Surety bonds involve three parties: the principal (Williams), the obligee (the beneficiaries of the will), and the surety (the company that provides the bond), guaranteeing that the principal will fulfill their obligations.

This differs from other types of bonds, such as savings bonds, corporate bonds, or municipal bonds, which are investment vehicles for lending money with the expectation of earning interest and eventually getting back the principal amount.