A fiduciary bond, also known as probate bonds or an estate bond, is a type of court bond which is requested by probate courts when appointing a fiduciary to a particular case. Fiduciaries are usually appointed to manage or administer estates, or any other assets of disabled, deceased or incompetent persons.
Fiduciaries are often also referred to as administrators, guardians, trustees and executors. Therefore, probate bonds is sometimes named after the respective function that a fiduciary has. For example, a trustee has a trustee bond. In essence, all of these serve the same purpose.
Probate bonds protect the persons whose estates or assets the fiduciary has been appointed to manage. If the fiduciary engages in dishonest practices, and is found guilty, the surety bond company backing the bond is there to rectify any such claims, up to the total amount of the bond.
All fiduciaries need to have a probate attorney assisting and over seeing the fiduciary. This is a requirement of the surety company.
Listed below are the 3 absolutes in surety:
- Most be a US Citizen
- Cannot be in current bankruptcy
- Cannot be behind in child support