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 bond protects the interests of the trust beneficiaries in case the trustee does not adequately perform their duties to the beneficiaries.
Trusts are fiduciary arrangements allowing for a third party, the trustee, to manage a trust beneficiary’s assets. Trusts can have their terms set up precisely, allowing for when and how the beneficiaries will obtain their assets. Revocable trusts are one variation, as they allow for trusts to be setup during the settlor’s lifetime, with assets only passing upon the settlor’s death. They are considered revocable because the settlor can change the terms of the trust while alive. Irrevocable trusts, however, differ in that they cannot be modified without the permission of the beneficiaries.
Trustees are tasked with managing the beneficiary’s assets, and more generally, administering the trust. Trustees can be appointed in a will or appointed by the court.
Trustee bonds may be required to ensure that the trustee manages and administers the trust according to the terms of the will and law. If the trustee commits any malfeasance in accordance with their duties as trustee, a claim can be made by the trust beneficiaries against the trustee bond, effectively providing a recovery to the beneficiary for that malfeasance.
Colonial offers the direct and digital way to obtain trustee bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your court 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!