What are conservator bonds?
A conservator bond is a probate bond that courts require conservators to post to protect a conservatee’s estate. A conservatee is deemed incompetent by a court and must be appointed a conservator to manage their financial affairs (Cornell Law School).
Conservator bonds ensure that court-appointed representatives fulfill their obligations to conservatees – ethically and legally. This is common in the case of a deceased person’s heir. Unlike legal guardians, conservators are only charged with handling financial decisions – not the health and well-being of their wards.
What is a conservator?
A conservator is someone appointed by the court to supervise someone else’s (the conservatee’s) financial needs, such as a child, an elderly adult, or an adult with a disability. The conservator can make decisions regarding the conservatee’s personal and financial affairs. Sometimes a conservator is also the legal guardian who takes care of the conservatee, managing their living situation and taking care of their health and physical needs.
To become someone’s conservator and guardian, you must file for both roles in court (and often obtain a conservator bond and a guardianship bond, depending on the state).
What is a conservatorship?
A conservatorship is when a court appoints someone to manage a minor’s or incapacitated person’s personal and financial matters.
Get Your Conservator Bond:
- Conservator bonds protect individuals and their estates by ensuring conservators follow the law and act in the conservatees’ best interests.
- If the court requires you to obtain this bond, you must purchase it before you can become a conservator.
- Generally, bond costs range from 0.5% to 3% of the bond amount required.
- You must renew your bond annually for it to remain active until you wish to cancel it or the court releases it.
Why do the courts require conservator bonds?
Conservator bonds protect individuals and their estates by ensuring conservators follow the law and act in the conservatees’ best interests. Conservators must faithfully fulfill their obligations to conservatees, or someone can file a claim on their bond.
If the claim is valid, the conservatee will receive compensation for any losses the conservator caused. Examples of activities that may cause a conservatee harm include mismanaging finances and acting dishonestly. The court is often the party to file a claim on the bond.
How do conservator bonds work?
A conservator bond is a legally binding contract between an obligee, a principal, and a surety.
- Obligee: The court that requires the bond
- Principal: The conservator who much purchase the bond and follow its terms
- Surety: The company that issues the bond and guarantees it financially, agreeing to pay for claims upfront on behalf of the conservator
If a court or another party files a valid claim on the bond, the principal must indemnify the surety after the claim is settled. In other words, the principal must repay the surety for any claim-related costs, plus interest and fees.
Frequently Asked Questions
If the court requires you to obtain this bond, you must purchase it before you can become a conservator. Often, the conservator is a conservatee’s close relative (spouse, adult child, parent), a friend, or an attorney.
The court will decide the bond amount required on a case-by-case basis. Generally, bond costs range from 0.5% to 3% of the total bond amount. Your premium rate will depend on your credit score, financial backing, and whether an attorney is involved.
As a conservator, you must renew your bond annually for it to remain active (until you wish to cancel it or the court releases it).
How to Get a Conservator Bond in Your State
We can help you get your conservator bond in a flash! Just apply online or over the phone with one of our agents, and we’ll issue your bond quickly. Give us a call at 888-435-4191. We offer the fastest and most secure option for getting bonded.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.