When do you need a fiduciary bond?

Fiduciary bonds are typically required when a fiduciary is appointed to manage the affairs of another person or entity. This includes personal representatives of estates, trustees of trusts, guardians of minors or incapacitated adults, and conservators of incapacitated adults. How does a fiduciary bond work?

Can a court require a fiduciary bond?

A court may require a fiduciary bond for any person or party that has fiduciary duty or responsibility to another. In general, a fiduciary is someone who owes a duty of loyalty to protect the interest of another.

What is a fiduciary bond?

A fiduciary bond involves three parties: the fiduciary, the court and the surety (the bond company). When the Court imposes a fiduciary bond requirement, then the fiduciary must purchase and post a fiduciary bond. Once the bond is posted, the bond company is obligated to pay the court a set amount if the fiduciary breaches their role in any way.