Guardianship bond: protecting the money you manage for someone else
A guardianship bond is a surety bond a court requires when it appoints a guardian to manage the money or property of a minor or an adult who cannot manage their own affairs. It guarantees the guardian uses those assets for the person they serve, called the ward, and follows the court's direction. If the guardian misuses the funds, the bond covers the loss.
Reviewed by Dustin SanVido, Estates Program Lead
Who needs a guardianship bond
You need one when a court appoints you to manage property for a minor, often an inheritance or a settlement, or for an adult who has lost capacity. The bond is about money, not caregiving. A guardian of the person, responsible only for medical and living decisions, is rarely bonded, since no assets are at risk; a guardian of the estate, or a conservator, who controls the ward's finances, is the role that gets bonded, and this is the bond type courts waive least often of any on this list.
Guardian or conservator?
In some states the person who manages a ward's finances is called a conservator, and the bond is a conservatorship bond. The role is the same idea under a different name. Conservatorship bond
How much does a guardianship bond cost, and who pays?
In the US, the premium is a small percentage of the bond amount, typically 0.3% to 1% per year, which the court sets based on the assets under management; several states, including California, add a cost-of-recovery amount on top of the base asset value. In Canada, the standard rate is a flat 1%, and the amount is set directly by the Public Guardian and Trustee or the court, not calculated from a formula as an estate bond is. The guardian applies and pays the premium, and it is generally paid from the ward's estate as an approved expense rather than out of the guardian's pocket in both countries.
How long does it take, and what if you do not qualify?
Many guardianship bonds are issued quickly once the court sets the amount. If credit or the bond size makes approval hard, options include a co-signer, collateral, or a specialty market. We place files that get declined elsewhere. Bad credit bonds
What you will need
- The court appointment or pending petition, or in Canada, the PGT letter or court order confirming the bond amount
- The value of the assets you will manage
- Your identification and financial details for underwriting
- Evidence of the ward's incapacity, in whatever form the court or province generated it
Guardianship bond questions
Who pays for a guardianship bond?
- The guardian arranges and pays the premium, which is generally reimbursed from the ward's estate as a court-approved expense, in both the US and Canada.
How much does a guardianship bond cost?
- In the US, typically 0.3% to 1% of the court-set bond amount per year. In Canada, a flat 1% of the amount the PGT or court sets.
How long does it take to get a guardianship bond?
- Often the same day or within a few days once the court has set the amount, longer for large or complex files.
What if I do not qualify?
- We can often still place the bond with a co-signer, collateral, or a specialty market. Talk to a specialist.
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.