trustee surety bond oregon
When establishing a trust one of the issues that must be dealt with is a trustee surety bond. Having a surety bond in place is always recommended as a safeguard to ensure that the trust is handled appropriately and follows the wishes of the person/business setting up the trust in the first place.
What Point Does A Trustee Surety Bond Serve?
Perhaps one of the simplest ways to think of a trustee bond is to think of it as a safeguard. The person or financial establishment that oversees the trust has a legal duty to make sure the trust is not mishandled or wasted.
When a trust is established it is generally done so with forward thinking. Considering not only what is needed now, but what is necessary for the future, is what makes a trust good or bad. Parents who are opening a trust for their children, for instance, want to make sure their child/children are financially protected down the road.
By having a trustee surety bond, the benefactors of the trust are better protected from any mishandling of the trust fund or account. Should the person/business overseeing their matters cause a financial harm, the benefactors have the surety bond to fall back on to help them correct matters.
What Happens When No Surety Bond Is Used?
Finding out the hard way what good a surety bond can do can be a difficult lesson to swallow. Especially if it is the job of a minor to figure out. Think about a situation where a trust is established for a child and then that child loses his/her parents. Now the trust plays an even bigger role than before.
By not having a trustee surety bond the child is left exposed to harm. While the person overseeing the trust has certain duties he or she must comply with, there are unfortunate situations where the trusts are not handled properly. In those situations, without a bond, the minor or person is entitled to the trust faces a long battle that may not result in financial repayment.
The cost of a trustee bond seems insignificant when compared with what it will actually do. It helps the courts in Oregon hold the trust to a high standard which protects all benefactors of the trust. It’s peace of mind that doesn’t have an end date.
To talk about trustee bonds or other types of surety bonds in Oregon feel free to contact the Jurisco office anytime. Our trained staff can quickly answer any questions and set up a bond in a few short steps.