Why is a Conservatorship Bond Required?
Since conservators are given full or partial authority over someone, the court requires conservator bonds to protect at-risk individuals and their estates.
This is to ensure that the conservator will faithfully perform the duties required by the court and to recover any losses if the conservator commits misconduct.
Some of these duties are as follows:
- Develop a plan on how to manage the assets
- Manage the conservatee’s assets with the utmost care
- Prepare an inventory of the conservatee’s assets for the court
Some of the activities that conservators can do are as follows:
- Open a bank account for the conservatee
- Apply for government benefits
- Transfer a conservatee’s stocks, mutual funds, or bonds into the conservator’s name
- Sign home contracts or leases on behalf of the conservatee
If, for example, a conservatee’s estate loses value due to the dishonesty or mismanagement of the conservator, the court may take action against the bond by filing a claim.
The money that the court will receive will be used to pay the monetary losses that the conservatee has suffered.
What is the role of the Surety Bond Company in Conservatorship Bonds?
The surety will serve as the conservator’s financial supporter. If a valid claim is made, the surety will pay the claim on behalf of the conservator. However, the conservator is expected to indemnify the surety after the claim has been paid.
How much does a Conservatorship Bond cost?
Typically you will pay 0.5% of the bond amount as your bond cost (also known as the premium). However, as bonds get larger (usually over $500,000), there is a sliding scale and the premium will be less than 0.5%.
For example, if the bond amount is $200,000:
$200,000 x 0.005 = $1,000 is the bond premium
Bonds larger than $500,000 are based on a sliding scale and will cost slightly less than 0.5%.
The bond premium is paid every year by the conservator to the surety up until the conservatorship bond is canceled or released by the court.
The court may adjust the bond amount according to the current value of the conservatee’s estate. Your bond amount could either increase or decrease.
How to get a Conservatorship Bond
We’ve made the conservatorship bond process easier so that you can get yours immediately. Just make sure that you have gathered the documents needed before submitting your application to avoid delays.
STEP1: APPLY FOR THIS BOND
If you’re ready to do this now, you may APPLY HERE.
STEP 2: ASSESSMENT
Next, you will be asked to submit a few standard information to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
Aside from those, the underwriter will request you to submit the following:
- Any court documents that show that you are asked to get this bond.
- A written explanation as to why you are appointed as the conservator and the type of appointment (e.g. general conservator, temporary conservator, LPS conservator).
STEP 3: INDEMNITY AGREEMENT
Once the underwriting process is complete, you will be asked to sign an indemnity agreement. Once signed, the bond will be issued and sent to you.
How can I become a conservator?
The conservatorship application process varies per state. The process is dictated by the state’s specific probate code.
However, there are some similarities on how a conservatorship is processed in all states. Please see the list below.
- Complete a petition for appointment form
- File the petition in the probate division of the court in your state
- Pay the filing fee
- File a conservatorship bond to the court clerk
- Sign the affirmation or oath