The responsibility of taking care of an individual's financial needs can be immense. When you have been appointed as a professional conservator through the court system, you will learn that you may need to secure a surety bond to protect both you and the individual you are helping. Conservators handle the financial affairs of an individual, liquidate assets to pay for medical care or housing costs, and have a great duty to the individual to protect any assets that exist. A surety bond guarantees that the work will be done sufficiently, and acts as insurance for the person needing financial help.
Why Professional Conservators Exist
Some people do not have trusted family or friends in their lives that will help them manage their money when they are no longer able. A professional conservator is an individual approved by the court system, who is assigned cases on a person by person basis. The conservator has to file accounting records to the court, and must secure a surety bond in order to handle the financial affairs of a person as their conservator. The conservator is in place to protect the finances of an individual who no longer has the ability to protect the assets on their own.
Surety Bonds Protect the Obligee
The obligee is the person who owns the assets. A surety bond is obtained by the conservator, which will protect the finances of the obligee. The surety bond must be in the right amount, meaning that when the bond is obtained, a realistic view of the size of the estate must be presented. If the conservator doesn't do their job, and simply walks away with the money, the company that wrote the surety bond will compensate the obligee accordingly. It will be up to the bond company to get back any losses from the conservator, potentially filing criminal charges based on the behavior of the conservator.
When the Assets Change
If the total value of the assets protected by a surety bond goes significantly up or down, it's time to secure a new surety bond with the new figures. While an old bond will protect the obligee, if there is an increase in their assets and a problem occurs, the obligee is only protected for the amount listed in the surety bond.
When you are responsible for the finances of another person, it's important to find out if you need to secure a surety bond or not. For more information, contact companies like NFP, P & C, Inc.