Surety Bonds: Start With Pre-Approval

by Court Bond Now

Surety Bonds: Start With Pre-Approval by Neil Pedersen

When seeking to obtain a surety bond, there are important considerations one needs to be aware of before applying to the court.

Since there are costs associated with making an application to the court for the appointment of a guardian, conservator, administrator, executor, preliminary executor, trustee, or another fiduciary appointment in respect to drafting the orders and conducting the hearings, we recommend that clients first complete an application for the bond and submit it to my agency to ensure that they are able to obtain the bond. There is little reason to spend money on these tasks if the client cannot ultimately obtain the bond.

Characteristics of a Viable Candidate for a Guardianship Bond or Conservatorship Bond

The court will typically require that the client be bonded for the amount of liquid assets in the guardianship or conservatorship. In addition, the surety is going to determine whether or not the client can manage his or her own affairs. Generally, sureties do not like to bond clients with bad credit, nor will they allow a client who cannot manage his own finances to handle someone else’s finances.

Usually, clients that own their home, have good credit, and are employed are more attractive to the surety. Also, sureties are impressed when a family member or close relative is appointed guardian. This demonstrates a vested, long-term interest in helping the person who has been declared incompetent.

Lastly, the surety will want to ensure that the client can complete annual accounting, track funds, respond to the court, and act as a proper fiduciary.

In the event that a client cannot be bonded, we will look at other potential family members and/or develop safety measures for the accounts in order to limit expenditures. If a client cannot obtain a guardianship bond or a conservatorship bond it is not because the surety thinks the applicant will misuse the funds, but it is because the surety does not think they are qualified to do so.

If an attorney is being appointed guardian of a person and they have credit issues due to medical bills, student loan debt or other explainable circumstances, we can usually bond the attorney if they provide an explanation. Attorneys can also seek to be pre-approved for large bond amounts. At times, judges will appoint an attorney guardian of a large guardianship if they know that they can obtain the guardianship bond.

Contact us with your questions today.

neil pederson

Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY 10038
212-227-7277
800-720-7277

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