A Conservator may be appointed when a person is not able to take care of his/her own financial affairs. The Conservator is a court-appointed fiduciary that handles anything related to finances or assets. For example, the Conservator may handle someone else’s investments, bank accounts, or real estate and is often required to post a Conservatorship Surety Bond.
The three parties of this bond include the obligee, the principal, and the surety company. The obligee is the court that is requiring the principal to be bonded. The Conservator (principal) must be bonded in order to legally perform their court-appointed obligations. The surety company is the party that underwrites and ensures the bond.
What is the Conservatorship Surety Bond and what does it do?
The Conservatorship Surety Bond is an agreement between the three parties that the principal will act accordingly with the requirements of the bond. If the Conservator acts fraudulently or fails to abide by the bond requirements, then the surety company will cover the claim filed against the bond.
This bond is similar to a guardianship bond; however a Conservator handles monetary matters whereas a Guardian handles everyday care. The bond is a type of insurance which protects the Conservatee, or the person being cared for.
Obligee and Bonding Requirements
As stated before, the court requires a Conservator to be bonded. The bonding requirements state that the Conservator will not commit any fraudulent acts with his/her legal power during service.
The principal should be informed on all requirements before applying for a bond. If the principal acts against the bond and a claim is filed, then the surety company will pay for all paid claims, which the principal must then pay back to the surety.
Bond Amount and Bond Cost
The cost for the Conservatorship Surety Bond is also referred to as the bond premium. The bond premium is the one cost that the surety company sets. All other fees that are related to the bond are set by the obligee. The bond premium is only a small percentage of the bond amount.
The bond amount is set by the obligee, not the surety company. Usually, the judge will set the bond amount based on the financial and estate worth of the Conservatee. The bond amount is the amount of coverage the surety company will pay out to the party harmed if a claim is filed against the bond.
How to apply for a Conservatorship Surety Bond
At surety1.com we make it easy to apply for your Conservatorship Surety Bond. Simply complete our easy to use, online application. Usually within 1 business day one of our surety bond professional agents will contact you with a firm quote or request additional information required by the surety to underwrite the risk.
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Check out our Fiduciary Bond Guide