Your Questions Answered in Our Frequently Asked Questions.
A fiduciary bond is a guarantee of performance. It ensures that a fiduciary, such as an Executor, Administrator, Trustee, Conservator or Guardian, will perform their duties faithfully, ethically and according to state law.
The court may or may not notify the agency/surety of the resolution of an estate, trust or guardianship. It depends on the jurisdiction.
To expedite the bond-release process, contact our agency once you have been notified of the approval of the final accounting by the Commissioner of the Accounts. Be prepared to transmit a copy of the approval letter via fax, email or regular mail.
The bond provides third-party indemnification. It protects the interests of any individual or entity that may have a financial claim on an estate (such as a beneficiary or creditor) whose interests are directly affected by the performance of the fiduciary. An incapacitated person or minor’s asset are also protected by the existence of a bond. Lastly, the bond indemnifies the Commonwealth of Virginia from potential litigation by transferring risk to a private entity.
It’s a gray area, but, technically, the funds should be distributed in the same manner as the other assets of the estate.
If a renewal premium is due prior to submission of the final accounting, it should be remitted due to the court mandate that all bonds remain in effect until the Commissioner of Accounts approves the final accounting.
There can be a period of several months between submission and approval of the final accounting, particularly if there’s a need for further information by the Commissioner.
Keep in mind that renewal premiums are pro-rated and unearned portions are returned to the estate in the form of a refund following the approval of the final accounting. If a renewal premium notice arrives after submission of the final accounting and prior to approval by the Commissioner of Accounts, contact the agency for instructions.