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California Conservator Bond
In California, when an adult cannot care for themselves or their property, the court will appoint a "conservator" to make decisions on their behalf. The appointed individual, also known as a fiduciary, may be required to obtain a surety bond as required by California Probate Code 2320. The surety bond safeguards the ward’s assets from any financial harm caused by the conservator’s actions and is a prerequisite for obtaining Letters of Conservatorship.
Have any questions? Give us a call at (855) 470-0877 and speak to a live California probate bond expert.
What Bond Amount Do You Need?
The court will set the required bond amount once the judge signs the Order Appointing Probate Conservator after your hearing. The judge will only require a bond if the conservator has control over the conservatee’s property. If you have not filed a petition or had your court hearing yet, you must complete these steps before obtaining a bond.
California Probate Code 2320 states the bond amount should equal the value of the conservatee’s personal property and annual income. Real estate should not be included in the bond amount unless you plan to sell the property. However, the court will have the final say in determining the bond amount in your case. The court may also increase or decrease the bond amount to reflect any change in assets during the conservatorship.
How Much Does the California Conservator Bond Cost?
The California Conservator Bond costs a minimum of $150 per year. Apply online in minutes or call one of our probate bond experts at (855) 470-0877 to find out exactly how much your bond will cost.
For a quick price indication, conservators can follow the steps listed below:
- Determine the Required Bond Amount
After the hearing on a conservatorship petition, the superior court judge will sign an Order Appointing Probate Conservator (GC-340). The order will state the exact bond amount needed or waive the bond. The bond amount typically equals the value of the conservatee’s annual income and all personal property under the conservator’s control, including cash, investments, vehicles, and other non-real estate assets. Conservators should email a copy of this court order to [email protected] during their application process.
- Calculate the Total Cost
Jet Surety charges $150 per year for all California Conservator Bonds up to $20,000 in size. For each additional $1,000 increase in the bond amount, the bond premium will increase by the corresponding amount outlined in the table below. See the chart below to calculate the price for larger bonds.
| Bond Amount | Additional Premium (per $1,000) | Bond Cost (1 year) |
|---|---|---|
| $0 - $20,000 | $150 flat rate | $150 |
| $20,001 - $60,000 | $6.00 | $150 - $390 |
| $60,001 - $200,000 | $5.00 | $390 - $1,090 |
| $200,001 - $500,000 | $3.75 | $1,090 - $2,215 |
| $500,001 - $1,500,000 | $2.50 | $2,215 - $4,715 |
| $1,500,000+ | $1.00 | $4,715+ |
We provide discounted multi-year rates and tiered pricing that reduces the premium rate for larger fiduciary bond amounts. Jet requires premiums to be paid in full for minor guardianship bonds based on the years until the minor turns 18. Note that rates may vary based on the applicant’s credit and other underwriting factors.
Why Is the California Conservator Bond Required? Are There Surety Bond Exemptions?
When a conservator is appointed to manage a conservatee’s property, the superior court in California may require a surety bond according to California Probate Code 2320. The bond safeguards the interests and well-being of the person’s assets and serves as a form of insurance that guarantees the fiduciary's responsible and ethical behavior.
By requiring a bond, the court can help mitigate loss from mismanagement or misuse of the estate assets by the conservator. When a bond is on file, the courts can better hold the conservator accountable and ensure they adhere to the requirements of Division 4 of the California Probate Code. The bond can also compensate the conservatee for any losses incurred due to the conservator’s actions.
The court may waive or reduce the surety bond requirement in the following situations:
- The conservator is of the person only, not the estate
- The court determines that a bond is not necessary to protect the estate’s assets
- The fiduciary deposits a portion of the estate assets court-restricted account subject to prior court approval for release
What Are The Different Types of Conservators in California?
A conservator of the person is legally responsible for taking custody of and providing care for an incompetent adult, including making medical and personal decisions on their behalf. In contrast, a conservator of the property only has authority and accountability over the adult's finances, property, and monetary matters. Division 4 of the California Probate Code provides the responsibilities and duties of all conservators. Below are descriptions of each position, along with their corresponding bond requirements:
- Conservator of the Property: A person appointed to exclusively manage a conservatee's financial affairs, including caring for their assets, applying for benefits and managing their bank accounts. Conservators of the property must obtain a bond pursuant to California Probate Code 2320.
- Conservator of the Person: A person appointed by the court to make decisions for a person’s personal affairs and ensure that their basic needs are met. This type of conservator will not need a surety bond because they do not control the conservatee’s assets.
- Conservator of the Person and Property: A person appointed to manage all aspects of a conservatee’s finances and well-being, including caring for their property and meeting all personal needs. Conservators of the person and property must obtain a bond if they have any control over the property.
If a minor receives assets or property, they will need guardianship instead of a conservatorship. Guardians of a minor’s property must obtain a surety bond before being appointed, and they can apply for their bond online here.
Other Important Terms to Know
- Conservatee: A disabled adult or minor who cannot independently manage their affairs and is placed under the conservatorship of an appointed individual
- Conservatorship: A legal proceeding where the courts appoint a person to manage the financial and/or personal affairs of another person
- Guardian ad litem: An unbiased party, typically an attorney, appointed by the court to protect the best interests of the disabled person during the conservatorship proceeding
- Estate: The total value of all money and other property owned by the conservatee
- Fiduciary: A person or organization that acts on behalf of a conservatee and is legally bound to act solely in their best interests. Conservators are a type of fiduciary.
- Interested Person: Any person or entity who has an interest in the welfare or finances of a conservatee
- Minor: An unemancipated individual under 18 years of age
- Personal Property: Non-movable assets in an estate, including cash, stocks, jewelry, personal effects, vehicles, etc.
- Respondent: The minor or alleged disabled person who is in need of a conservator
- Surety Bond: A type of insurance that can reimburse the conservatee for any financial damages caused by the conservator
How Is the Conservator Chosen by the Superior Court?
Any interested party may petition the court to appoint a conservator over another individual; petition forms can be found here. The petitioner must include relevant information about the alleged conservator and the value and nature of their property. The California Conservatorship Handbook provides a step-by-step guide on conservatorships and the appointment process.
When considering who to appoint as conservator, the court attempts to appoint the person who best serves the conservatee's interests. Generally, the order of appointment for conservators of property is as follows:
- A person or corporation nominated by the conservatee
- The previous conservator’s nomination (if applicable)
- The conservatee’s spouse or domestic partner
- The conservatee’s adult child
- The conservatee’s parents
- The conservatee’s siblings
- Any other person considered appropriate by the court
In all cases, the court will consider the respondent's preferred nominee and appoint the person who will serve the respondent's best interests.
How to Apply for a California Conservator Bond With Jet
Jet’s application process is simple and fast - our goal is to get the conservator bonded as quickly as possible so they can focus on their obligations. All we need is the bond amount and basic information about the case.
Once completed and submitted, you will receive your purchase price immediately, or a Jet underwriter will review the application. Some of the factors Jet considers when underwriting these types of bonds:
- If the applicant has ever committed a felony
- If the applicant has previously filed for bankruptcy
- If the applicant has an attorney assisting with the estate
- Applicant’s credit history for bond limits over $25,000
Applicants for bond limits over $50,000 must submit documentation from the court for review, such as a petition for appointment and the order requiring the bond. If you have any questions about applying, please call our probate underwriters at (855) 470-0877.
How Do You File a California Probate Bond with the Superior Court?
Jet (the Surety) and the conservator must sign the original bond. Jet fills out the bond form, signs as the Surety, and sends the original bond to the conservator to sign and file the completed bond with the Superior Court. Jet will also send the conservator an electronic copy of their bond to keep in their files.
Can the California Conservator Bond Be Canceled?
At Jet, we like to make things easy for our customers, and cancellation of your bond is no exception.
To cancel your bond, send us an email at [email protected] or give us a call. When we receive your request, we’ll contact the superior court to request a bond release. If the court provides a release showing you are no longer the conservator, we will cancel your bond and send you a refund for any unearned premium after the first year on a prorated basis.
How Long Do You Need the Bond?
In California, the superior court requires that the bond remain on record throughout the fiduciary's entire appointment period until the conservatorship is no longer needed or the minor turns 18 years old in guardianship cases. Until that point, the court requires that the bond remains active.
As for renewing your bond, Jet sends a renewal invoice by email and mail before the bond term’s expiration date. As long as you make your renewal payment, the bond will remain active with the superior court.
How Does a Conservator Avoid Surety Bond Claims in California?
The superior court expects the conservator to fulfill all duties and obligations under Division 4 of the California Probate Code. Failing to meet these requirements or not adhering to all court orders can result in a bond claim. Some common violations that may lead to a bond claim include the following.
Here are some violations that may lead to bond claims on the California Conservator Bond:
- Committing negligence, embezzlement, or fraud
- Misusing or misappropriation of estate assets
- Buying or selling any part of the estate without court approval
- Acting outside of the powers specifically vested by the court
- Using estate funds or property for personal use
- Failing to submit inventory reports or account for all estate assets
Any person with proven damages caused by the conservator's actions may file a claim against the bond, including the conservatee, their legal representation, or any other interested party to the case.
What Happens if I Get a California Conservator Bond Claim?
Upon receiving court notice of a claim on the bond, Jet has 30 days to pay the claim or ask for additional time to review it. Jet works tirelessly to protect fiduciaries against faulty claims. Even if the court has requested a bond payout, we assess all documentation provided by the court and the conservator before paying out the claim. However, as a fiduciary and indemnitor, you will ultimately be required to reimburse Jet Insurance Company for the full claim payout.
California Superior Court Locations
Conservators and guardians can find a list of all the county superior courts in the state of California here, along with their addresses and contact information. Fiduciaries should also contact the Self-Help Center for their specific court for guidance in getting started.
