Who needs to have a Fiduciary Surety Bond?
Fiduciary Surety bonds, also known as Probate Bond, are a blanket term for a type of court bond that is required of individuals who has been appointed to act on the behalf of others. This type of 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.
What is a Fiduciary Surety Bond?
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, all monies paid out by the surety must be reimbursed by the principal, including any attorney’s fees incurred by the surety in the defense of the claim.
What are the different types of Fiduciary Surety Bonds?
Depending on what the fiduciary’s responsibilities are, the following types may apply:
All fall under the fiduciary or probate category.
Are there different bond amounts for Fiduciary Surety Bonds?
Yes. Amounts for Fiduciary Bonds vary depending on the value of the assets that the principal has responsibility for and the amount of coverage required by the court. Please contact us with specific questions regarding bond amounts, and our knowledgeable underwriting staff will assist you.
How much does a Fiduciary Surety Bond cost?
Pricing for Fiduciary Surety Bonds varies, and your premium will be based on the following factors:
- Amount of the bond
- Term length of the bond
- Personal credit of the appointed individual
Individuals with good credit can expect to pay.5%-5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $100,000 Fiduciary Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Fiduciary Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Fiduciary Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase a Fiduciary Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.