Custodian Bonds

The custodian bond is also known as the Guardianship bond. The custodian bond may be required if someone is appointed as the guardian of a minor or someone who is not mentally able to take care of their own affairs.

Who is required to purchase a Custodian Bond?

An appointed guardian may be required to purchase a custodian bond. The guardian manages the assets and finances of the person. To protect the interests of the person who is unable to tend to these matters, the bonds encourages guardians to manage the accounts of the person accurately and as ordered to by the court.

The person appointed to guardianship is usually recommended by the family or friends of the person. Once the appointment is made, they must make regular reports to the courts as to the state of the account.

Why require a Custodian Bond?

A Custodian Bond is necessary to protect the interests of the person who is either legally or mentally unable to tend to their own property or finances. The custodian bond ensures that guardians will work in accordance to the orders of the court.

The bond also discourages frivolous custody battles. For instance if custody is won, more than likely, the new guardian will have to purchase a custodian bond. The expensive nature of the bond discourages people who are not truly interested in serving as guardian

Where can I get a Custodian Bond and how much to they cost?

Custodian bonds can be purchased from insurance or bonding companies, including SuretyBonds.com. The bonding company ensures that any asset loss due to the practices of the guardian will be repaid.

The price of the custodian bond varies according to the assets and/or annual income of the person you are guardian over. Generally, the bond will be twice that of the person's assets and/or annual income.