Fiduciary Bond | Probate Bond

Fiduciary bonds may be required of anyone who has been appointed to take care of another person or entity's property or estate, assets, finances, or even affairs. Usually the recipients of a fiduciary’s services are minors, or disabled, deceased or incompetent persons. Heirs and beneficiaries also fall within this category.

Probate, or estate, bonds might be required of guardians, administrators, executors, trustees, custodians, and others. These bonds are typically requested by probate courts appointing fiduciaries, rather than by individuals.

Probate bonds and estate bonds are alternative names for fiduciary bonds.

There are also more specific types of probate bonds such as Veteran Affairs fiduciary surety bonds required when a fiduciary is appointed to take care of the assets of a veteran who cannot do so themselves. Other commonly used estate bonds are guardianship bonds, as well as executor bonds, which refer to specific types of fiduciaries being appointed.

Occasionally there may be minor differences between these bonds according to state legislation, because they address different types of fiduciaries, but in practice, they are usually used interchangeably and are not seen as separate types of bonds.

The cost of a fiduciary bond is a percentage of the whole amount of the bond. The amount of the bond, in turn, is directly linked to the value of the estate or assets that the fiduciary has to take care of.

When determining your rate or premium, sureties will take your personal credit score into account. If you have a high score, you can expect your bond to cost between 1%-3% of the total amount of your bond. In the case of probate bonds, the percentage of the premium often falls as the amount of the bond increases. It is common to see rates below 1% for higher bond amounts.

Getting a probate bond with bad credit is possible, although only in certain instances and with individuals whose credit issues are minor. Applicants who have a very low credit score typically do not get approved.

If you have further queries or need help with your application, you can reach us at (877) 514-5146.

If a fiduciary is found to be in breach of regulations and of their responsibilities, the probate bond offers legal recourse to obligees and relevant harmed parties. They can file a claim against the bond and receive compensation up to the full penal sum of the bond. The fiduciary must then compensate the surety for its backing by covering all costs on proven claims, as per the bond indemnity language.