Q. What is a fiduciary surety bond?

A financial guarantee that an Executor, Administrator, Trustee, Conservator, or Guardian will faithfully perform court-appointed duties.

Q. Who determines if I need a surety bond?

Only the court determines whether a bond is required and establishes the bond amount.

Q. Why do I need a surety bond if the will waives it?

Virginia law may still require certain fiduciaries, particularly out-of-state Executors, to obtain a bond.

Q. How is surety bond approval determined?

Applications are individually reviewed based on underwriting factors such as credit history, attorney involvement, employment, and estate complexity.

Q. Who does the surety bond protect?

Beneficiaries, creditors, minors, incapacitated persons, and other interested parties – not the fiduciary. The bond acts as a financial safety net if the fiduciary fails to properly administer the assets.

Q. Who pays for the surety bond?

Premiums are generally paid from estate, trust, guardianship, or conservatorship assets and are billed annually while the bond remains active. The bond premium is based on the bond amount. For example, a bond of $30,000 or less has an annual premium of $100, while a $100,000 bond has an annual premium of $310. The premium continues to be billed each year until the court releases or terminates the bond.

Q. Does the surety bond insure me as the fiduciary?

No. It protects third parties, not the fiduciary personally. If the surety company pays a claim because of the fiduciary’s wrongdoing, the fiduciary is required to pay back the surety company.

Q. My surety bond is ordered to be increased, what now?

Please contact Grimes Insurance Agency. A court ordered increase must be approved by our office and will typically result in additional premium due.

Q. Final accounting is pending. Do I pay the renewal?

Yes. The bond remains active until the Commissioner of Accounts approves the final accounting. Eligible unearned bond premium is refunded.

Q. Will my surety bond cancel automatically?

Not always. Notify us after final accounting approval to help expedite the bond release process.

Q. The estate is closed via approval of the final accounting and suddenly I receive a check for a refund of unearned bond premium. What do I do with the refund check?

As the estate’s fiduciary, you should handle the bond premium refund check the same way you distributed the other estate assets.