A Conservator Bond is a requirement by the courts for someone appointed or absorbing the guardianship of someone unable to handle the affairs. A Conservator Bond is also referred to as a Guardianship Bond. It is a type of fiduciary bonding agreement required by law and used as a method of protection and accountability of a minor or a legally incapacitated person.
Conservator Surety Bonds involve three major parties:
The following party buys the bond and guarantees the performance, integrity, and accountability of the bond while managing the assets of the conservatee.
It’s a party which requires the bond. Aa judge acts as the obligee while the bond must be beneficial for the conservatee.
A bonding agency usually acts as the surety. The surety is in charge of underwriting and issuing the bond.
And who can act as the conservator? The conservator is a court-appointed professional or “fiduciary” put in charge of managing incapacitated individual’s finance affairs, such as bank accounts, real estate, or other investments. The conservator bond is applied when individuals are deemed unable or legally incompetent to manage the above mentioned on their own.
A Conservatorship Bond is required by law when an individual can no longer manage his or her finances.
For anyone that accepts or is appointed to be the guardian of a disabled adult, or minor, a Conservator Surety Bond is required to protect the interests of the conservatee.
The bond serves as a guarantee to the courts that the legally incompetent won’t be harmed and have their financial affairs managed to the best of the abilities of the conservator.
However, they are not designed to protect the Conservator. In fact, these bonds aim at the protection of the conservatee or the individual being taken care of.
It is important to understand, if a guardian or conservator doesn’t handle the finances properly, a claim may be made against the bond to recoup any losses of the conservatee.
If a claim is made against your bond, the surety company will pay out any claims, but the conservator can be deemed financially reliable to pay back any debts due to the claim against the surety company.
Depending on the total value of assets or financial interests being managed, you should pay for a conservator bond on an annual basis. The sum is based on a percentage of all financial assets and estate value.
Other variables that are taken into consideration when estimating an annual payment are:
• Case Specifics
• Additional State Requirements
• Personal Credit History
Typically, the annual premium is around 5% depending on the conservator’s credit. In other cases, you may have to pay some money in advance for filing and attorney’s fees, or even for medical examinations to verify the legitimacy of the conservator’s request.
Ultimately, these fees and costs are imposed on the conservatee.
However, in other cases, the costs can be cut down by ensuring a part of total assets or finances, in turn, reducing the cost of the bond. A Conservator Bond can stay in effect for as long as needed.
Receiving and accepting the job of a Conservator implies a high level of responsibility to be taken on.
Each duty is supervised by the court and regulated by law. Additionally, the performance of the agreement will be monitored on a regular basis. As a result, only those, who are truly committed to the job, should accept it.
If anyone considers that you are not living up to the expectations and requirements of being a Conservator, you may receive claims and lose faith. However, being a Conservator isn’t only a rewarding job but unique experience.
How to Get a Conservator Bond FAST!
Applying for a Conservator Bond is not difficult, as we’ve simplified the process for you into easy to understand steps, which can be found on our court bond application page.
Finally, if you would like to speak to a live customer service representative to walk you through the process of applying and getting approved for a fidelity bond today, we are here to answer all questions.