What is a Guardianship Bond?
A guardianship bond is a custodial bond. These bonds give an appointed guardian control over the finances and well-being of another individual. Generally, this individual is a minor or a disabled adult whose disabilities preclude his or her making financial and other decisions.
Guardianship is a difficult decision for many clients, particularly if they are looking after disabled adults or another person’s children. Unfortunately, guardianship – especially over adults – can carry the connotation of someone controlling another person regardless of what he or she wants. This is why guardianship bonds exist; they ensure the appointed guardian will act in the best interest of the person or persons under their care, without taking advantage of or abusing those persons.
Do I Need a Guardianship Bond?
You will need a guardianship bond if you currently care for a minor who is not your biological child, an elderly person, or a disabled person. You may also need this type of bond if you know you will be caring for someone in these categories in the future. The guardianship bond remains in effect for as long as you care for the person or persons it names. The amount of the bond varies depending on the needs of the person or persons under your guardianship.
Every state’s guardianship bond requirements are different, as are the fiduciary insurance requirements that come with these bonds. Please familiarize yourself with your state’s laws in regards to posting a surety bond for anyone under your guardianship.
Who Does a Guardianship Bond Protect?
Most people seeking a guardianship bond would never knowingly abuse or take advantage of the people these bonds exist for. However, claims of abuse and other crimes occur every day. If you experience a claim, a guardianship bond can provide proof that the person named in it was entrusted to you, and that you understand the repercussions breaking the bond would incur. A guardianship bond also protects minors, elderly persons, and disabled persons who are not provided for in wills or trusts. They can help ensure the person or persons named in them are allowed to stay with trusted family members or friends.
If you have questions regarding guardianship bonds, feel free to contact Smith Bond and Surety for a consultation.