Fiduciary bond: the umbrella over estate and court bonds
A fiduciary bond is a surety bond that guarantees a court-appointed fiduciary will act honestly and in the interest of the people they serve. It is the broadest term in this family. Executors, administrators, guardians, conservators, and trustees are all fiduciaries, and the bond each one posts is a type of fiduciary bond.
Reviewed by Dustin SanVido, Estates Program Lead
Who needs a fiduciary bond
If a court has appointed you to manage money or property for someone else, you are a fiduciary, and a bond may be required. The specific name depends on your role:
- Executor of a will, an executor bond
- Administrator of an estate with no will, an administration bond
- Guardian of a minor's or incapable adult's property, a guardianship bond
- Conservator of an adult's finances, a conservatorship bond
- Trustee ordered by a court to post security, a trustee bond
Executor of a will
An executor bond.
Learn moreNo willAdministrator of an estate with no will
An administration bond.
Learn moreGuardianshipGuardian of a minor's or incapable adult's property
A guardianship bond.
Learn moreConservatorshipConservator of an adult's finances
A conservatorship bond.
Learn moreWhat a fiduciary bond guarantees
The bond protects the beneficiaries, the estate, or the ward, not the fiduciary. It guarantees the fiduciary follows the law and the court's direction, keeps proper accounts, and does not misuse the assets. If they do, the surety pays the loss and recovers it from the fiduciary through the indemnity they signed.
Trustee bonds specifically
A trustee usually does not post a bond, because a trust document names and directs them. When a court directly supervises a trust, such as a testamentary trust created in a will or a special needs trust under court oversight, a trustee may need to post a trustee bond. This is one of the rarer bond types on this list, applying only when the governing document requires it or a court orders it for cause.
What it costs and if you can waive it
The premium runs a small percentage of the court-set bond amount per year, in the same 0.3% to 1% US range or flat 1% Canadian rate as the other bonds on this list. In many cases, the requirement can be waived by the will, by the trust, or by the consent of the people protected. We will tell you when that is possible.
Fiduciary bond questions
What is the purpose of a fiduciary bond?
- It protects the people a fiduciary serves by guaranteeing honest management of their money and property, backed by a surety.
Who needs to obtain a fiduciary bond?
- Court-appointed executors, administrators, guardians, conservators, and, less often, trustees under direct court supervision.
Should I waive the fiduciary bond requirement?
- A will or trust can waive it, and beneficiaries can consent in most cases, but a court may still require one where a vulnerable party is involved. We can advise you on your situation.
How much does a fiduciary bond cost?
- A small percentage of the bond amount set by the court, adjusted for credit and estate size, typically 0.3% to 1% in the US or a flat 1% (with discounts considered) in Canada.
A court deadline does not have to be a crisis
Tell us the bond you were ordered to post. We get it issued and filed, so the estate can move forward.