Guardianship, in simple words, is a legal relationship formed for the protection of those unable to take care of themselves on their own. Appointed by the court, legal guardians are typically responsible for managing matters such as finances, health care or real estate of their ward.
However, when an individual is appointed as a guardian by the court, they’re required to have a guardianship bond for financial protection of the subject in their custody.
Wondering what these bonds are all about? Here’s everything you need to know about guardianship bonds.
What are guardianship bonds?
Guardianship bonds are legal contracts, the purpose of which is to ensure that the court-appointed guardian of an individual will fulfill the obligations mentioned in the agreement. Like every court bond, guardianship bonds involve three parties, namely The Principal, The Obligees and The Surety.
The Obligees of a guardianship bond are individuals incapable of caring for themselves. These include minors, elderly, disabled or anyone else that requires assistance to carryout everyday tasks and manage their assets.
The court-appointed guardian is the Principal of the guardianship bond. As the Principal of the bond, guardians are expected to make rational decisions on behalf of the Obligees under their protection. The guardians are also required to provide timely reports to the court with an accounting statement regarding the resource they spend.
Surety companies provide the underwriters for the bond and are responsible for holding the principal accountable in case of a legal conflict between the parties involved.
How do guardianship bonds work?
Guardianship bonds are set in place to provide monetary security to the person protected by the bond. Guardians are required by the law to fulfill their duties with complete honesty and make decisions that are in the best interest of the subjects in their custody.
If a guardian fails to do so, a claim can be filed against the guardianship bond. The claim is then investigated and if found to be legitimate, the surety company pays an agreed amount of money to the Obligees, which is later repaid by the guardian to the company.
How much do guardianship bonds cost?
Guardianship bonds have varying prices and the amount is typically determined by the court according to state laws and the specifics of each case. However, the guardian needs to pay an annual premium, the amount of which is usually a small percentage of the total bond price.
For example, if the total price of your bond is $100,000, you might be expected to pay nearly $500 annually, if your premium is 0.5%.
How can I get one?
Think you need to apply for a guardianship bond? Your first step should be to approach a reliable surety agency to discuss your options. If you’re looking for guardianship bond experts, let us help you out!
BondPro offers trusted surety underwriting services in more than 50 states across the United States, including Florida and Oklahoma. From court bonds like guardianship and probate bonds to contract bonds such as bid and performance bonds, our experienced underwriters are capable of fulfilling all your surety needs under one roof.
For details, get in touch with our representatives today at 918 337 4100 or drop an email at any of the mentioned addresses: