- February 14, 2022
- Posted By:hmvreeland
A Fiduciary is a person or entity that is appointed to take care of the client’s assets. A Fiduciary is expected to act in their clients’ best interests and are bound by a legal and ethical relationship of trust.
What is a Fiduciary Court Bond?
A fiduciary bond in Florida guarantees that the Fiduciary will faithfully fulfill their duties according to law or pursuant to estate planning documents. If the fiduciary fails to perform their duties, acts dishonestly, or in an incompetent manner, a fiduciary bond protects the heirs or beneficiaries against losses.
If the Fiduciary steals money or uses the Obligee’s assets for personal gains, the Surety holds them accountable for any deficits that may occur.
Who Needs a Fiduciary Court Bond?
Not every Fiduciary needs a fiduciary bond. A court may direct a Fiduciary to get bonded. Oftentimes Beneficiaries or Creditors who want to play safe may require the Fiduciary to buy a bond so that they have an extra layer of protection against risks.
Corporate fiduciaries are usually not required to buy a fiduciary court bond as they have adequate reserves and insurance to cover any surchargeable loss to client assets and the overall risk is usually low.
Types of Fiduciary Court Bonds
Some common examples of fiduciary court bonds include Conservator bonds, Trustee / Executor / Administrator bonds, and Guardianship bonds.
➢ Conservator bonds: A Conservator bond guarantees that the Conservator- the person appointed by the court to take decisions on behalf of an incapacitated individual and manage their assets will perform their duties and responsibilities as defined by the court.
➢ Trustee / Executor / Administrator bonds: If a person dies without appointing an executor for their will or the person nominated by the testator dies, is unwilling to serve, or was removed, the court may appoint an Administrator to execute the deceased person’s last wishes. The court may require the appointed person to get bonded. An Administrator bond guarantees that the administrator will act in a responsible manner and fulfill their duties according to law.
➢ Guardianship bonds: A court may require a person appointed as the guardian of a minor/elderly person/a mentally or physically incapacitated person who cannot take important financial and healthcare decisions on their own to get bonded. This is to ensure that the beneficiary’s interests are protected against any losses that arise due to the appointed person’s failure to discharge their duties.
How to get a Fiduciary Bond?
You can buy a fiduciary bond through a reputable bonding company such as H.M. Vreeland. We are committed to helping individuals and businesses gain customer trust and build credibility. Our professionals know everything there is to know about the different types of surety bonds and are experts in their fields. We can help you choose the right type that fits your needs.
The H.M. Vreeland team consists of surety bond specialists. Whether you have a construction business or manage funds for veterans, we can help you find the right type of bond that will give customers and beneficiaries peace of mind. To learn more, call (407) 504-2741.