A fiduciary can be a trustee, executor, financial advisor, or anyone who wields control over the personal assets of another party. Fiduciary and probate surety bonds are used by fiduciaries to provide financial protection for their clients, who might be heirs, beneficiaries, or creditors. A fiduciary can be court-ordered to post a surety bond or post one voluntarily to show loyalty to the concerned parties.
The ProSure Group issues surety bonds for fiduciaries in all 50 states. Submit a request online for a free, no-obligation price quote. Or call us to speak with one of our surety experts who will guide you through the application process.
Depending on the nature of the fiduciary relationship, a fiduciary may need to post one of several types of fiduciary bonds: probate bond, executor bond, administrator bond, conservatorship bond, and guardianship bond, among others.
Probate bonds are among of the more common versions of fiduciary bonds. Some states’ laws require an estate executor to post a surety bond during probate action: if the testator’s will neglects to waive the bond requirement, a court may order the estate’s fiduciary to post a bond. These courts also have the authority to override waivers and impose bond requirements on fiduciaries when just cause is given.
Fiduciary bonds may be required by a state’s laws. Or a fiduciary may be asked by the beneficiaries or creditors associated with an estate to post a probate surety bond. This latter example often happens when a client accuses a fiduciary of being a financial risk or of having questionable loyalty to the estate. If the allegations are then proven in a court, the judge may order the fiduciary to post a surety bond comparable to the estate’s value.
Corporate fiduciaries (trust companies, banking institutions, etc.) are generally exempt from laws mandating surety bonds; the justification is that corporate fiduciaries own enough assets to cover the values of the estates they manage. Similarly, those with fiduciary responsibilities for real estate, which are immovable assets, may also be exempt from bond requirements. To verify the rules in your state, speak with one of our surety experts.
Even though corporate fiduciary surety bonds are not always legally required, they have constant value: by giving financial protection to clients, bonds inspire confidence and feelings of loyalty from them.
The premium for a fiduciary or probate bond varies based on the state’s laws and the financial standing of the fiduciary. An applicant with stellar credit and financials may be eligible to pay just 1 percent of the total bond amount — a $500,000 bond could cost as little as $5,000.
In most cases, the amount of a fiduciary bond is equal to (or slightly higher than) the value of the estate. If more assets are discovered, or current ones are sold off, the bond could increase or decrease in parallel with the estate’s value. Meanwhile, most fiduciary surety bonds are renewed every one to several years. If your credit or financials change in the interim, we can adjust the premium during the next renewal.
As the fiduciary, you bear the responsibility for posting whatever surety bonds are necessary based on your clients’ requests or state’s laws. With that said, The ProSure Group can help you every step of the way. We have a simple application process that is similar to applying for a bank loan. Once we confirm that you meet our underwriting criteria, we will issue you a bond at the lowest market rate for which you qualify. Even if you have less than stellar credit, we have rate options to get nearly all applicants approved for the bonds they need.
The ProSure Group issues surety bonds for fiduciaries across the country. For questions about which bond is right for you, contact one of our surety experts. With minimal time and expense, we will help get you the proper fiduciary bond at the lowest market rate to satisfy your legal or ethical obligations and please your clients. Contact us for a free price quote or to get started on our fast, hassle-free application.
Fill Out The Form Below and
Receive your FREE Quote Today
| Bond Name | Bond Type | Subtype |
|---|