Trustee Bond

The Trustee Bond may be required by probate courts throughout the United States for a person, known as a trustee, responsible for handling dispersion of assets to the trust’s beneficiaries. The Trustee Bond is a type of Probate Bond meant to guarantee a trustee’s actions to beneficiaries and in cases of fraud or negligence reimburses the damaged person(s). 

Many states utilize the Uniform Trust Code (UTC) which is a systematic arrangement of common law for the safe-handling of trusts nationwide. States that adopt the UTC also have individual statutes. Either the court or the trust document may deem a surety bond necessary.

APPLY FOR TRUSTEE BOND

As Probate Bond experts, Jet’s process is seamless from start to finish. Jet takes care of the surety bond requirement so the trustee can focus on their obligations to the beneficiaries. 

What Is the Cost of a Trustee Bond?

The probate court specifies the Trustee Bond Limit amount by carefully reviewing the trust to ensure the bond covers the entirety of the trust’s assets. The cost of the bond is a small percentage of the bond limit and a soft credit check of the trustee is completed to get an approved rate.

Jet’s Trustee Bond application process takes only minutes to complete and our underwriters will be in contact with you shortly after.

How Is the Trustee Bond Filed?

Trustee Bonds are to be filed with the court in the county where the trust resides. Each court has unique bond filing procedures. Some probate courts allow the bond to be filed electronically and Jet is able to take care of the entire process for you upon receiving payment. If the court requires the original bond to be on file, Jet will send the bond to the trustee’s preferred address free of charge.

Can Trustee Bonds Be Cancelled? 

Once purchased, the bond is to remain on file with the court until the trustee has fulfilled their duties according to the terms of the trust. However, the court can terminate or modify the bond at any time. 

Jet works with the trustee and the court to ensure a smooth process for all parties involved. If cancellation is needed, Jet provides a 30-day written notice to the court. During those 30 days the trustee and the surety (Jet) are liable under the bond. 

Jet does not charge cancellation fees. If there is any time remaining on the bond at the time of cancellation Jet calculates a prorated refund for which you will receive money back when applicable. 

How Does a Trustee Avoid Bond Claims?

The trustee plays a key role in ensuring the beneficiaries are given what they are owed according to the trust terms. When the bond is required, the trustee is held responsible for actions such as compiling a list of bondholders, making payments, and selling property. 

Following the obligations of the terms of the trust typically makes for a seamless process that should be accompanied without complaint. However, bond claims can come from both the beneficiaries and the court if the trustee is not properly administering the trust. 

What Happens If I Get a Bond Claim?