Fiduciary Surety Bonds, also known as probate bonds, are a blanket term for a type of court bond that is required for individuals who has been appointed to act on the behalf of others. This type of surety bond is usually required by a probate court when appointing an administrator, fiduciary or trustee to handle the affairs, estate or assets of a deceased, disabled or incompetent person or a minor. Fiduciary Surety Bonds guarantee that the principal (appointed individual) will comply with the court’s requirements and instructions, as well as any state or local statutes regulating fiduciaries. They also guarantee the principal will perform their duties in an honest and faithful manner.
If the principal causes any financial loss or damages due to dishonest practices such as fraud or embezzlement, a claim can be filed against the bond. If the claim is validated, the surety will pay out up to the penal sum of the bond to resolve the claim. Once a claim has been resolved, any monies paid out by the surety must be reimbursed by the principal, including attorney’s fees.
Depending on what the fiduciary’s responsibilities are, these bonds can also be called executor bonds, guardianship bonds, administrator bonds and trustee bonds. All of them fall under the fiduciary or probate category. Bond amounts vary depending on the value of the assets that the principal has responsibility for, the amount of coverage required by the court and the financial credentials of the principal.
Pacific Surety offers industry low rates on all fiduciary bonds and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.