A conservatorship bond, which is also referred to as a guardian bond, is a very important tool to protect the interests of wards that are incapacitated, minor, elderly, etc. The bond is put into play to force the guardian or conservator to perform their fiduciary duties responsibly and as directed by the court. It helps protect the ward from any financial damages that may occur because of the incompetencies or negligence of the conservator.
Bond or Surety Coverage
In the state of Virginia, it is the circuit court that determines the monetary value of a guardianship bond. The courts also have the authority to evaluate whether a surety on that bond is required. As per Virginia Code 64.2-1411, the bond must be equal to the value identified for the ward’s property or other eligible assets, as well as the ward’s anticipated income. In addition, it is also the court that will decide how to adjust the value of the bond should the income or wealth of the ward drastically increase or decrease.
Some Important Factors the Court Considers When Determining the Amount of the Bond
Generally, there the factors can vary from state to state, however, in Virginia, the following are some vital elements considered by the circuit court:
- The total net value of the ward’s estate and commercial assets (total income).
- Income that the ward will earn in the future (such as government pension plans, benefits, etc).
- The amount of liabilities that will be incurred because of managing the ward’s estate.
Questions about your estate plan?
Every situation is different. If you have questions about how Virginia law applies to yours, contact the Law Office of Miles Franklin to schedule a consultation.
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