Trust & Estate Bonds
A Fiduciary is someone who, under the jurisdiction and supervision of a Court, administers property held in trust. The Fiduciary is generally required by law to provide a Surety Bond. This guarantees faithful performance and compliance with Court Orders. A Surety Bond does not serve as coverage for the Fiduciary, but rather as protection for the heirs, incompetent, creditors, etc.
The most common Fiduciary Bonds are:
- Trustee of Estates
- Conservator or Committee of Incompetent
- Receiver of Rents
Fiduciary bonds are of indefinite duration; and depending on the nature of the bond, it is cancelable upon either or all of the following:
- Court Order
- Distribution of Assets
- Filing of a Final Accounting
- Payment of Debts
- Sworn Affidavits by all interested parties
Acceptance is determined by the experience and integrity of the Fiduciary, their personal and financial background, their relationship to the heir, incompetent or creditors, the type of assets involved, and the professional assistance available.