A Conservatorship Bond (aka. Guardianship Bond) is a type of court bond that ensures an individual that has been appointed in a court of law will perform and fulfill his or her obligations and duties. Certain situations require a guardianship bond, such as when the court appoints an individual to overtake the finances or assets of someone who can no longer manage them themselves. Such cases might include a child whose parents are deceased, or an elderly or disabled person.
What do they do?
Conservatorship bonds work similar to insurance. They ensure assets are not mismanaged or taken advantage of. If a guardian improperly or dishonestly manages assets, the bond protects against any losses incurred. If this happens, and a guardianship bond is in place, the bonding company will take action to recover the losses.
Who needs one?
You need a Conservatorship bond if:
- You are selected as a guardian of a minor, elderly, or disabled person
- You are selected as a guardian of any of the above’s finances or estate
Not every Conservatorship/Guardian must get bonded though. In some cases, a judge might deem a bond unnecessary if the person needed guardianship has limited assets. It is important to understand if you need a guardianship bond or not so that you are not paying for something you don’t actually need.
Conservatorship bond amounts and obligations are determined by a judge
How much do Conservatorship Bonds cost?
Conservatorship bond amounts and obligations are determined by a judge and vary based on the worth of the financials or estate. The bond remains in place the entire length of time that the incapacitated individual needs such supervision or financial management help. Because of this, there will be an annual premium charged for the bond that must be paid until the bond is released from the court. Factors that are taken into account when determining this premium include personal credit history, specifics of the case, and your state’s guardianship requirements.
The best place to get Conservatorship Bonds?
Your best option for obtaining a Conservatorship bond is through a surety bond company that has a large network of carriers. They will be able to use their resources to ensure you have the best shot at being bondable, and for the best price.
Is it worth it?
Being a guardian is an important job; it isn’t for the faint of heart, or those that are not dedicated to the job. As a guardian, you will have many responsibilities, all which are court-mandated and regulated. You will have to give regular reports to a judge to prove you are fulfilling your duties. And if someone feels as though you are not fulfilling your duties to the best of your ability, or neglecting or misusing assets or finances of who are you in guardianship over, a claim might be made against you, starting a long and arduous court process. On the other hand though, being a guardian enables you to care for someone who needs care or assistance in managing their financials or estate, a hard, but rewarding experience.
Conservatorship Bonds are required by courts in most States for all those who manage the financial affairs of another with physical or mental limitations