With the many variations of surety bonds available, it can be easy to get them mixed up, but knowing the differences between each type of bond can help you more easily identify your specific needs. In this blog we’ll be focusing on fiduciary bonds. Fiduciary bonds are court bonds that probate courts often require. Many times, this bond must be obtained by people who are acting on behalf of others, such as someone who has been appointed to manage someone else’s property, assets or an entire estate.
These bonds guarantee that court-appointed fiduciaries will comply with the court’s requirements. A fiduciary bond guarantees that fiduciaries will do their jobs honestly and will not take advantage of the position of power that they’ve been put in. Fiduciary bonds protect the consumer but they also allow consumers to trust their finances with fiduciaries, creating a positive relationship between fiduciaries and clients. When money is being managed and people’s livelihoods and legacies are on the line, it’s very easy for the relationship between a client and a fiduciary to get muddled or soured. Probate bonds keep that from happening and help regulate the industry in a noninvasive way.
There are four different kinds of fiduciary bonds: probate bonds, executor bonds, guardianship bonds and estate bonds. There are some slight variations between these bonds because they all deal with different types of fiduciaries, but in execution they are all fairly similar and often interchangeable.
The price tag for a fiduciary is typically a percentage of the whole amount of the bond. The amount of the bond itself depends on the value of the assets that the fiduciary is responsible for. Your premium is determined by your personal credit score, and if your credit score is healthy, your bond will typically cost about 3% of the total amount of your bond.
Regardless of what your credit score may be, Simon Insurance Agency can work with you to help you get a fiduciary bond at an affordable rate. We have years of experience in the industry and want to help you obtain the bond you need at the rates you deserve. Call us today for more information.