Court Bonds

Why Do Courts Require Surety Bonds?

05/07/2019

Court bonds, such as appeal bonds, may be required in court proceedings to enable a party to pursue a remedy in court. Fiduciary bonds guarantee the faithful performance of court appointed fiduciaries such as executors, administrators, guardians, and trustees.

These surety bonds may not be the most well-known aspect of the court system, and often fly under the radar of even seasoned lawyers, but are important parts of the legal system.

An appeal bond, also known as a supersedeas bond, is the bond a losing party is required by the court to file in order to secure its right to appeal and stay a judgment. While both state and federal courts require appeal or supersedeas bonds, the amount of those bonds may vary by jurisdiction.

A conservator is appointed to assist with the financial needs of a minor, disabled, or elderly person and may be required to obtain a conservator bond to protect the interests and affairs of the conservatee in accordance with the applicable state law. The requirements of the bond may vary from state to state.

An estate bond is also referred to as a probate bond,  fiduciary bond, administrator bond, personal representative bond, or executor bond. This bond is required by a court and protects the interests of the estate and its beneficiaries in accordance with state law. The requirements of this bond may vary by state and county where the descendant lived at the time of death.

A guardian is appointed to assist with financial needs of a minor, disabled, or elderly person and may be required to obtain a guardianship bond to protect the interest and affairs of the ward in accordance with the applicable state law. The requirements of the bond may vary from state to state.

A trust is a document created by a settlor that provides how property and assets within a trust are managed and distributed to trust beneficiaries. A trustee may be required by the trust document or a court to obtain a trustee bond to protect the interests of the trust beneficiaries. The amount of the trustee bond is usually determined by the trust document.

A referee is a person appointed by a court to sell real estate or other assets at issue in a litigation and may be required to obtain a referee bond to secure the referee’s obligations as required by the applicable state law. The amount of the referee bond may be set by the court, and is generally based on the value of the assets in dispute.

A receiver is a person appointed by the court to receive assets, property, and control of a company pending final decision of a lawsuit. A receiver may be required to obtain a receiver bond to secure the receiver’s obligations as required by the applicable state law. The amount of the bond is generally set by the court. Learn more about court and fiduciary bonds.

Where can you purchase instant court and fiduciary surety bonds?

Colonial Surety offers the direct and digital way to obtain court and fiduciary bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!