Probate bonds are required by the court when one is being assigned the role as a fiduciary of the estate of someone deceased or incapacitated.
Fiduciary / Probate
Both these bonds are broad terms that refer to an individual that is appointed to care for someone else in need. The surety bond ensures an individual will fulfill the court’s requirements such as managing an estate, finances, and other court-appointed tasks. Individuals that are appointed by the court to manage another person’s assets or to take care of someone in need are required to get a probate/fiduciary bond. The court requires a surety bond to be filed in order to ensure the guardian will handle their duties legally while abiding by the court’s standards.
Guardianship and Custodian
Guardianship surety bonds are a type of Probate/Fiduciary bond, and are also commonly referred to as custodian bonds. Individuals appointed by the court to care for others and to manage their assets are usually required to file a guardianship or custodian bond first. The bond guarantees the guardian will accomplish their duties legally and honestly while meeting the court’s expectations. Ensuring the guardian will take care of another person in need and will lawfully manage the person’s property or financial accounts is stated by the bond. The bond states that the guardian will act in accordance to the court’s guidelines.
An executor surety bond guarantees the estates of the deceased will be managed according to their will. The executor will be determined based on who is stated as such in the will of the deceased. In order for an executor to be appointed, the court that is responsible for the estate may require an executor bond to be filed first. Executor bonds need to be required by the court and is also field by the court. Factors that play into the bond premium are the estate’s value, the coverage amount, and the executor’s credit.
Since 2011, VA Fiduciary bonds give friends and family of veterans the legal ability to act as their fiduciaries. The U.S. Department of Veteran Affairs allow the people who are close to the veterans the power to control the veteran’s finances, benefits, and estate. Some examples of duties as a fiduciary are paying the veterans’ bills on time or making sure the benefits paid to the veteran are collected and distributed legally. Large fees that are usually charged by the fiduciaries who work for the court cannot charge fees in this case. The premium for this type of bond depends on the applicant’s credit and the value of what the applicant will be managing.