Individual Fiduciary Bonds

The terms overlap significantly, and in many cases they describe the same bond. "Probate bond" typically refers to bonds required in probate court proceedings -- executor bonds, administrator bonds, and guardianship bonds. "Individual fiduciary bond" is a broader category that includes probate bonds but also covers individuals serving as trustees of non-probate trusts, co-fiduciaries serving alongside a bank or trust company, personal representatives in non-probate asset transfers, and individuals appointed as fiduciaries in non-court-supervised situations where the document creating the fiduciary relationship requires a bond.

Often, yes. When you serve alongside an institutional co-fiduciary (bank, trust company), the institution's blanket bond covers its own employees but does not cover your personal actions. Courts and trust documents frequently require each co-fiduciary to be separately bonded. Your individual bond covers losses caused specifically by your decisions and actions. Joint and several liability means you could be held responsible for the bank's mistakes too, but your bond only covers claims arising from your own conduct.

Individual fiduciaries lack the institutional oversight that banks have. There is no compliance department, no internal audit, and no regulatory examination. The surety is relying entirely on your personal integrity, credit history, and financial strength. This means credit scores matter more (a score below 600 significantly increases premiums), the surety scrutinizes your personal financial statement, and first-time fiduciaries without a track record face higher rates than experienced ones. Having an attorney or CPA advising you helps, because the surety sees professional oversight as reducing risk.

Standard individual fiduciary bonds are written per-appointment -- one bond per trust, estate, or guardianship. If you serve as trustee for three different trusts, you need three separate bonds. However, if you handle enough appointments to qualify as a "professional fiduciary," you may be eligible for a master fiduciary bond that covers all your appointments under one policy with a single aggregate limit. The threshold varies, but typically 5 or more active fiduciary appointments and a professional fiduciary license make you eligible.

The application requires your full legal name and Social Security number for a credit check, a personal financial statement listing your assets and liabilities, the court order or document appointing you as fiduciary, a description of the assets you will manage, identification of co-fiduciaries if any, and details about any prior fiduciary experience. For bonds over $250,000, the surety may also request personal tax returns, bank statements, and references. Applicants with excellent credit (720+) and strong personal finances typically receive the fastest approvals at the lowest rates.