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.
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.
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.
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.
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.
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.
Beneficiaries can file a bond claim along with the county court where the trust resides. All bond claims are investigated thoroughly by the court prior to reaching Jet; because of this, there is little Jet can do to mitigate a bond payout. Upon receiving a bond claim from the court, Jet has 30 days to provide the claim payment to the damaged person(s). It is in the trustee’s best interest to be responsive with Jet through this process.
Valid bond claims that are paid out by Jet require reimbursement to Jet from the trustee. The surety bond acts as a financial guarantee that the trustee will complete administration according to the trust’s terms. The bond pays out claims for trustee fraud and the trustee remains liable for the actions, thus being required to reimburse the Surety (Jet).
In a living trust, the trustee is usually the person who sets up the trust. Sometimes a person setting up a trust will delegate a trustee on their behalf to represent the trust when they pass away. The Trustee Bond is only required if it is specified in the terms of the trust and/or if the court considers the bond necessary for the welfare of the trust’s beneficiaries.
Most states utilize the Uniform Trust Code and do not require the trustee to secure a surety bond, but there are still some that do. When the bond is required, it is for the financial protection of the beneficiaries to ensure the trustee acts in accordance with the trust’s terms. If the trustee acts maliciously the beneficiaries and/or court have the bond as recourse.
Jet’s application only takes a few minutes to complete. Information pertaining to the applicant and trust is gathered through our application process which allows Jet to determine eligibility and the cost. During the application you will be able to select where and how fast you want the bond to be shipped out. Click the button below to get started.
Trustee Bonds can be purchased in 1-, 2-, or 3-year terms depending on the trustee’s preference and the conditions of the trust. No matter which option is chosen, Jet makes certain you are notified of renewal with ample time so you won’t miss payment.
There are various court bond requirements and Jet offers them all. There are several types of Probate Bonds similar to Trustee Bonds for those who manage estates and trusts: The Administrator/Executor Bond and the Guardian/Conservator bond.
Many states utilize the Uniform Trust Code but there are still some that don’t. The chart below shows the state-by-state regulations and states that have not adopted the UTC have individual pages linked.
|Alabama||Yes - Since 2006|
|Arizona||Yes - Since 2008|
|Arkansas||Yes - Since 2005|
|Colorado||Yes - Since 2018|
|Connecticut||Yes - Since 2019|
|Florida||Yes - Since 2006|
|Illinois||Yes - Since 2019|
|Kansas||Yes - Since 2002|
|Kentucky||Yes - Since 2014|
|Maine||Yes - Since 2004|
|Maryland||Yes - Since 2014|
|Massachusetts||Yes - Since 2012|
|Michigan||Yes - Since 2009|
|Minnesota||Yes - Since 2015|
|Mississippi||Yes - Since 2014|
|Missouri||Yes - Since 2004|
|Montana||Yes - Since 2013|
|Nebraska||Yes - Since 2003|
|New Hampshire||Yes - Since 2004|
|New Jersey||Yes - Since 2016|
|New Mexico||Yes - Since 2003|
|North Carolina||Yes - Since 2005|
|North Dakota||Yes - Since 2007|
|Ohio||Yes - Since 2006|
|Oregon||Yes - Since 2005|
|Pennslyvania||Yes - Since 2006|
|South Carolina||Yes - Since 2005|
|Tennessee||Yes - Since 2004|
|Utah||Yes - Since 2004|
|Vermont||Yes - Since 2009|
|Virginia||Yes - Since 2005|
|West Virginia||Yes - Since 2011|
|Wisconsin||Yes - Since 2014|
|Wyoming||Yes - Since 2003|