A conservatorship bond, often referred to as a probate bond or fiduciary bond in California, protects the assets of an individual deemed unable to manage their own finances or personal affairs. The cost of this required insurance depends on the value of the assets under conservatorship, as set by the court. Insurance companies typically charge a small percentage of the bond amount as an annual premium. This premium can vary based on the specific insurer, the conservator’s credit score, and the complexity of the conservatorship case.
Protecting conserved assets is paramount. This surety bond acts as a safeguard against mismanagement or fraud by the conservator. It ensures that, should the conservator misappropriate funds or fail to adhere to their court-ordered duties, the protected person (the conservatee) has a means of financial recourse. The historical basis for such bonds lies in safeguarding vulnerable individuals and ensuring the ethical handling of their affairs. This mechanism offers a layer of protection, providing peace of mind to families and the courts overseeing these sensitive matters.
