What is a fiduciary bond is a question that gets asked a lot. As in determining other surety bond definitions it helps to consider the action. ‘What is a fiduciary bond?’ can be answered by reviewing the act of the fiduciary itself.
A fiduciary bond is required by every state when a person handles another person’s assets. The same applies to businesses both large and small.
What Are Types Of Fiduciary Bonds?
Fiduciary bonds come into play whenever there is a fiduciary. Just because an individual assumes the helm of another person’s estate it does not mean that estate nor that person should be subject to any wrongdoing. Fiduciary bonds are enforced by the states to protect against unlawful actions by a fiduciary.
A few types of fiduciary bonds are:
A personal representative bond is a fiduciary bond required by any person serving as a representative or administrator of an estate.
Any individual or business serving as a trustee of a trust must first secure a trustee bond. Without a trustee bond, the trustee can be found in noncompliance with state regulations. A Dutch Bank is facing a $1.3 Billion U.S. lawsuit over trustee responsibility.
A custodian of veteran bond is similar to an administrator bond. However, it is tailored more to members of the Armed Forces. The custodian of veteran bond protects veterans from unlawful actions by the person overseeing their account.
What is a fiduciary bond going to do? Protect those who the court see as vulnerable.
What Is A Fiduciary Bond Rate Based On?
Fiduciary bond rates are calculated considering a number of factors. Credit score, the value of the assets being overseen, state regulations and personal specifications all play a role in determining a surety bond rate. The value of assets is the main factor in answering what is a fiduciary bond amount.
A low surety bond rate is not only decided by what needs to happen, but by who makes it happen. Choosing the wrong surety bond company can be expensive.
What is a fiduciary bond rate going to be when working with a poorly rated company? Higher than it has to be. Working with a reputable surety bond company like Jurisco helps lower the surety bond rate.
What Is A Fiduciary Bond Supposed To Do In My State?
Every state handles fiduciary bonds as a way to protect residents and businesses. Jurisco surety bond experts know the fiduciary bond requirements for every state. This knowledge helps lower surety bond rates for clients.
Contact Jurisco today. They know the answer to the what is a fiduciary bond question. Let a surety bond expert help secure the right fiduciary bond today.