New York Fiduciary Bonds
New York fiduciary bonds cover a wide range of responsibility, but usually stem from the need to protect one person’s assets from the misuse of another person. Fiduciary bonds are required by New York courts to cover the actions of a guardian or fiduciary acting on the behalf of a ward or a deceased individual. Surety bonds including curator bond, personal representative bond, and custodian of veteran bond all hold the party overseeing an estate accountable for fulfilling their duties, including paying off debts and properly distributing assets.
When a person dies, an administrator will be appointed to administer their estate. However, the administrator may be unable to administer the estate for several reasons, including lack of a beneficiary. This puts the estate in curator status as a search for beneficiary or heir progresses. New York courts require a curator bond to protect the interest of the estate against mishandling by a curator.
The curator is responsible for protecting the estate against a loss until the estate can be administered properly. This heavy responsibility could result in a loss for the estate debtors and beneficiaries. Courts take the value of the estate, and court cost involved in the case, into consideration when setting the curator bond cost. The surety bond cost for a curator bond varies county to county in New York.
Personal Representative Bond
Personal Representative Bonds may be referred to as Administrator or Executor bonds in New York depending on the region. Courts require this surety bond when an individual dies and directs an administrator to distribute their assets and finalize their expenses. To protect the heirs and creditors of an estate, a personal representative bond covers the financial worth of the estate against any wrongdoing by a personal representative.
Some last will and testaments include a provision waiving the requirement of a personal representative bond, but the courts have the final say on the surety bond. The individual who is now deceased may have had great faith in their appointed personal representative; however, that does not extend to the court’s confidence. The court has a duty to protect all interests in this situation. When an executor fails to pay back taxes or properly notify beneficiaries the personal representative bond financially covers these mishaps.
Custodian of Veteran
Veterans of the American Armed Services deserve honor and respect for their service to their country. While war is not to be glorified, those who stand to fight should be protected when they can no longer represent themselves. Custodian of Veteran bond is a surety bond filed with the Department of Veterans Affairs after a service member is deemed incapacitated. This surety bond is similar to guardianship bonds in that it protects the incapacitated against a wrongful financial loss and mishandling of their estate by the person overseeing their assets.
Custodian of Veterans bond is only filed when the assets include money invested with the Department of Veterans Affairs. The department requires a custodian of veterans bond covering the worth of the estate. Without this bond, the veteran is vulnerable to damages. The guardian overseeing the veteran’s estate is also vulnerable to legal action for not following guardianship procedure.