Recent Surety Bond requirements under the Uniform Trust Act

Category: Uncategorized
Published: Mar 20, 2009
The Uniform Trust Code (UTC) was created by the National Conference of Commissioners on Uniform State Laws in order to create a uniform code for common law principles pertaining to trusts for all fifty states (i.e. for commericial transactions, as well as family estate planning). To better understand how a Uniform Trust works, I will briefly define the three parties involved with the creation and administrative duties. The person who created the trust is the “grantor” (or “settler”). The person who agrees to manage and oversee the trust and all of its assets is known as the “trustee”. Lastly, the person that is slated to receive the benefits of a trust is referred to as the “beneficiary”.

Thus far, 20 states have adopted the UTC in some form, and have begun to executed its laws. In 2008, the UTC was introduced in a number of states as well. Under these recent bills, trustees are only required to obtain a surety bond to guarantee the performance of their duties when the court deems such a bond necessary to protect the beneficiaries interests. A surety bond may also be needed if outlined in the terms of the trust, and court has not done away with the requirement.

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Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.