When we are no longer able to look after our own financial interests, we need someone else to make sure our wishes are upheld. The question is who? And what do you need in place that will offer financial protection and provide peace of mind for everyone involved? This is where having a Fiduciary Bond comes in. Steers Insurance has a team of experts who can help advise and get you bonded. In the meantime, read on to learn about Fiduciary Bonds and when and why you might need one.
First, what is a fiduciary?
In simple terms? A trustee. It’s an individual who is trusted to take care of another person’s interests or assets when they are unable to do so. A fiduciary can be a person, bank or company, appointed by a court order or assigned in someone’s Will.
When is a fiduciary needed?
There are several common situations that require a fiduciary and where having a fiduciary bond is advantageous to protect everyone’s interests:
- When a person has died without a will and has not named an executor
- When a named executor does not wish to serve in their role
- When a person is incapacitated and has no living power of attorney
- For the estate of a minor
So, what is a Fiduciary Bond?
A Fiduciary Bond is a type of court bond that guarantees that the fiduciary will legally execute their court-appointed duties. Fiduciary Bonds provide protection against fraud, embezzlement, or dishonest acts carried out by a fiduciary. If the fiduciary does not carry out their legal obligations, a claim can be made against their bond.
When is a Fiduciary Bond needed?
If a Fiduciary Bond is required, you will be notified by the court or your legal counsel. Common fiduciary bonds include:
An Administrative Bond must be posted in order to carry out administrative duties in relation to another individual’s estate. This type of Fiduciary Bond assures an administrator will handle the duties of managing an estate in an honest and moral way.
A Guardianship Bond is required in a court of law when an individual is no longer competent through illness, injury or other circumstances, to manage their own assets and general welfare. A guardian is bonded and appointed to handle the person’s assets.
Being a fiduciary comes with a great deal of responsibility. If you are about to be appointed a Fiduciary and require an Administration or Guardianship Bond call Steers today for further information and guidance. We have a dedicated team who can help.