Did you know that guardians are required to get bonded? It is called a guardianship bond and it assures the court that the person designated to act as a guardian will perform his or her obligations as required by law.

1. A Guide to
Guardianship
Bonds – What
You Should
Know

2. Did you know that
guardians are required
to get bonded?
It is called a guardianship
bond, also known as a
custodian bond in some
jurisdictions.

3. What is a Guardian?
Guardians are appointed by court for
minors or people who can no longer care
for themselves anymore, such as elderly
persons or people with disabilities.
They are tasked to manage the finances or
real estate properties of individuals who
are unable to make clear-headed, rational
decisions about finances.

4. What is a Guardianship Bond?
It is a type of court bond which assures the court that the
person designated to act as a guardian will perform his or her
obligations as required by law.
A guardianship bond protects the finances or assets of that
person who is the subject of the custody. If a court delegates a
guardian to someone, the law may require the guardian to
provide a guardianship bond.

5. Why do you need a Guardianship
Bond?
As with most surety bonds, they are required
by the law.
When you are appointed as a guardian to
protect a minor, elderly or disabled person,
you need to obtain a surety bond.

6. Here are the 3 parties involved in a Guardianship Bond
The person(s) that is
being protected.
The Obligee The Principal The Surety
The guardian who needs to
obtain a guardianship bond
required by the law.
Provides the surety bond
guarantee of the
principal that promises
to fulfill his or her duties
as a guardian.

7. Here are the 3 parties involved in a Guardianship Bond
The Obligee The Principal The Surety
The person selected as a guardian is required to provide reportsto the court regarding the
guardianship. The report must contain an accounting statement of how he or she spends
resources. Plus, it is also likely for the guardian to request the court to waive the bond
requirement. This depends on each jurisdiction’s laws and their particular situation, so it
is important to check your state’s court bond requirements.

8. How do you get a Guardianship Bond?
In securing a guardianship bond, you will need to work with a
surety bond company who can issue your bond, send any
related court documents, sign an indemnity agreement, and pay
the bond fee.
The surety company’s underwriter will want to learn as much as
they can about the case to make sure you (as the guardian) can
perform your duties appropriately.
Depending on the bond amount, you may undergo a credit
check. As the principal, your credit score or financial standing
is not the only thing that is taken into high consideration but
your personal integrity as well.

9. How do you get a Guardianship Bond?
If you are not deemed to be ‘bondable,’ then the court
will proceed to select someone else to serve as a
guardian.
What makes a person bondable is if a surety bond
company is willing to issue a bond to that person.
The surety will issue a bond if it is confident it can
recover its money in the event of loss or damage.

10. How much will Guardianship
Bonds cost?
The amount of the guardianship bond will also
depend on the law of each state. The law may
entail the bond amount to match the income
and value assets of the person (ward) subject
to guardianship. Otherwise, the court may
establish a formula to calculate the proper
amount of the guardianship bond.

11. How much will Guardianship
Bonds cost?
A guardianship bond costs vary from state to
state. Most people with good credit near or
over 700 can get bond approval between 1%
and 3% of the amount established by the court
for the surety bond. However, costs vary based
on specifics of the case. Usually, guardianship
bonds do not need a collateral and can be
acquired with your indemnification alone.

12. Why is Guardianship Bond
important?
That said, guardianship bonds protect the obligee against
losses, theft or misrepresentations should you (the guardian)
perform inappropriately.
A claim can be made against your bond if you happen to steal
money from the person you are caring for.
Guardianship bonds ensure that you will not abuse, neglect or
mistreat the person you are caring for. And once you do, your
ward is protected by the bond.

13. In summary…
It is always a good idea to have discussions with
potential guardians to make sure they understand the
rights and limits of their responsibilities.
Guardianship bonds ensure that legal guardians are
equally committed to keeping their wards’ best
interests and decisions.