The term fiduciary bond covers judicial bonds guaranteeing the duties by a fiduciary (a person entrusted with property and/or power for the benefit of another person, estate). In Georgia, there is a variety of fiduciary bonds. Today, the Jurisco surety bond blog covers four common fiduciary bonds in Georgia: guardianship bond, executor bond, trustee bond, and custodian of veteran bond.
Fiduciary bonds are similar to one another, but not interchangeable. They each deal with specific situations and have a different set of requirements. The goal of fiduciary bonds is to prevent the mishandling of an estate and offer legal recourse in the event such mishandling occurs. Readers who have any questions about fiduciary bonds in Georgia or any other state may contact Jurisco to speak with a surety-bonding expert.
A guardianship bond guarantees the guardian will not abuse nor neglect the ward financially or physically. Often times, courts in Georgia will require this bond to cover the value of the ward’s assets. The Court uses guardianship bonds to protect persons who cannot look after their own affairs. A person who is may require a guardian, as would a child whose parents are deceased.
A trustee bond is a type of fiduciary bond, which guarantees the trustee handles his or her duties appropriately, and without causing the trust a financial loss. The trust document itself often calls for a trustee bond, however, a Georgia court may require this bond if the document does not. The value of the trust determines the surety bond cost, as does the Georgia County in which it is held.
Custodian of veteran bond is similar to a guardianship bond except it is designed specifically for a veteran of a branch of the United States military (i.e. Army, Marines, Navy) who is incapacitated and has invested his or her money with the Department of Veteran Affairs (VA). To protect the interest of the veteran, the VA requires a guardian file a custodian of veteran bond with the Department of Veteran Affairs regional office in Atlanta.
Georgia requires executor bonds (often referred to as Probate Bonds) for any person and/or company serving as an executor to an estate. The executor must pay all estate debts, notify beneficiaries, pay taxes and handle other duties properly to avoid a loss. Often times this surety bond requires the assistance of an attorney. The cost of guardianship bonds varies depending on the estate, but bond premiums are paid annually until the estate is settled.
All four of these fiduciary bonds have applications online for your convenience. A Jurisco representative may also fax over the appropriate applications should that serve you better.