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These surety bonds are general for all states.
Learn more about guardianship bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Guardians serve in a fiduciary capacity, meaning that they have legal responsibility for managing the legal and financial affairs of a child. A fiduciary relationship is a relationship built on trust. A guardianship bond guarantees that the guardian will carry out his or her fiduciary responsibilities in compliance with all applicable rules and regulations. The bond protects the minor’s legal interests in the event that the guardian’s unethical behavior results in financial damages to the minor.
A guardianship situation exists when the court appoints an individual to serve as guardian for a minor. The terminology surrounding such court appointments can vary from one state to another. In some states, for instance, a person serving as guardian for a minor is referred to as a custodian or conservator.
To be appointed by a court to serve as guardian for a minor, the guardian must purchase a guardianship bond. The bond must be maintained in force for the duration of the fiduciary relationship—i.e., until the guardianship is terminated by the court or when the minor comes of legal age.
If a guardian commits an act that causes financial harm to the minor, the court can file a claim against the bond on behalf of the minor. For example, stealing money from the minor or investing the minor’s funds in an inappropriately risky investment that loses money would be reason for filing a claim.
The surety company will investigate the claim. If the surety determines that the claim is valid, they will pay it up to the full amount of the bond. However, the guardian must then repay the surety company.
The court establishes the required amount of the bond based on the estimated value of the minor’s estate. The amount is typically double the amount of the minor’s assets or annual income. The cost to the guardian is calculated as a percentage of the bond amount. Guardians with good credit will usually pay between 1-3% of the total bond amount as the annual premium. The premium may be somewhat lower for higher bond amounts.
Use our convenient online system to apply for a guardianship bond today.
