Arizona Conservatorship Bond
What is an Arizona Conservatorship Bond?
It is an important requirement that helps persons to qualify as conservators in the State of Arizona. A Conservatorship Bond assures the appointing court that the conservator will faithfully fulfill his or her court-assigned duties to the protected person.
This will also serve as a means of recourse for the protected person if the conservator fails to perform his or her legal obligations.
A conservatorship bond is required by Section 14-5411 of the Arizona Revised Statutes.
Who is required to get an Arizona Conservatorship Bond?
All conservators must furnish a conservatorship bond unless otherwise stated by the appointed court or is part of the exemption.
A conservator is a person who is appointed by a court to manage the estate of a protected person. A protected person is a minor or any other person for whom a conservator has been appointed or any other protective order has been made.
The conservator must submit this bond to the court along with a statement of acceptance of the duties of the office as part of the qualification process.
How does an Arizona Conservatorship Bond work?
A conservatorship bond has three parties:
Principal – Conservator appointed by the court
Obligee – Appointing court (on behalf of the protected person)
Surety – Surety bond provider
The Principal will be the party who will be responsible for fulfilling the fiduciary duties required by the appointing court. The Surety, on the other hand, will serve as a guarantor of the Principal.
Through this surety bond, the Surety is guaranteeing the compliance of the appointed conservator to his or her fiduciary duties. The Surety will extend its credit to the Principal in case the Principal violates any of the bonded duties.
If such happens, the Obligee will be eligible to file a claim against the bond. The Obligee will send a written notice stating the violations committed by the Principal. The Surety will not immediately pay the Obligee. The Surety will first determine if there is indeed a violation and if the violation is covered by the bond.
If the claim is valid, the Surety will pay the Obligee up to the full amount of the bond. Once the Obligee has been paid, the Principal must reimburse the Surety for all the payments the latter has made.
How much does an Arizona Conservatorship Bond cost?
The bond premium will depend on the bond amount. The bond premium is the fee that the Principal/Conservator will pay the Surety.
If the Principal has an excellent credit score, he or she will typically pay just ½ % of the total bond amount. Bonds larger than $250,000 are typically priced on a sliding scare.
The appointing court will be the one to determine the bond amount.
As stated in Section 14-5411 of the Arizona Revised Statutes, the appointing court will base the bond amount on the “amount of the aggregate capital value of the property of the estate in the conservator’s control plus one year’s estimated income minus the value of securities deposited under arrangements requiring an order of the court for their removal and the value of any land which the fiduciary, by express limitation of power, lacks the power to sell or convey without court authorization.”
If you know your bond amount right now, you can get your FREE CONSERVATORSHIP BOND QUOTE HERE.
How to get an Arizona Conservatorship Bond
We’ve made obtaining one faster and easier! You can get your conservatorship bond in as fast as 24 hours as long as you have submitted all the requirements to us.
Just follow these simple steps:
- APPLY HERE for the Arizona conservatorship bond.
- Submit the necessary documents such as, but not limited to, the following:
- A copy of the court order for a conservatorship bond
- The bond amount required by the court
- The Principal’s credit score
- Sign the indemnity agreement
- Receive your conservatorship bond
Who is/are exempted to file an Arizona Conservatorship Bond?
This bond is not required of the following conservators:
- National banking association
- A holder of a banking permit under the laws of this state
- A savings and loan association authorized to conduct trust business in this state
- A title insurance company qualified to do business under the laws of this state
- A trust company holding a certificate to engage in trust business from the superintendent of financial institutions or the public fiduciary.