In New York, a guardianship may be needed in certain situations. Individuals who are unable to manage their own affairs due to a disability may require a guardian. Guardians may also be named to manage a property. If you are concerned about aguardianship, you may wonder if a fiduciary bond is required if you’re named.
Does a guardian need to be bonded?
Not all types of guardianships require a fiduciary bond. Guardians for Personal Needs usually don’t need one. However, Guardians for Property Management usually do need a bond except in certain situations. For example, if someone is named guardian of a property to manage that property and the ward has very limited assets, the judge might decide that the bond is unnecessary.
When a judge decides that a bond is necessary, it will state that in the Order and Judgment document.
How can a guardian get a bond?
If you have a guardianship and need a bond, you should be able to get one through a bonding agency. After you receive the Order and Judgment, you can call the agency and ask how you can send your application. Applications can be sent through regular mail, phone or fax. You must have an index number available to provide to the agency. It can be found on the Order and Judgment, which you must also provide a copy of to the bonding agency.
In order to secure a bond, you must prove that you’re financially responsible. You will have to prove that to the bonding agency by showing information like your credit score, income and financial resources. It will also want to see whether you have any debt or if you’ve ever filed bankruptcy. Guardians who are considered a poor financial risk are not good candidates for a bond.
However, if you are approved for a bond, you will pay a percentage of the value of the property and the ward’s income. Once you have a guardianship bond, you can file it with the county clerk’s office. Your ward must appear with you when you file. You will also receive a notarized Oath and Designation document.
Guardianship is a big responsibility. It’s something to be taken seriously as you’re helping another person manage their affairs.