More about Requesting a Bond
If you have reason to suspect that the trustee of a trust is engaged in wrongdoing and you have an interest in the trust property, requesting a bond can provide some protection. A beneficiary can petition the Court to order the Trustee produce a bond. The bond serves as a safeguard. If the trustee engages in wrongdoing, the bonding company will pay the costs.
Some trusts have language that specifically waives the requirement that a trustee obtains a bond when administering the trust. However, a court can still order the bond if it is necessary to protect the beneficiaries.
The following is an overview of the pros and cons of Requesting a Bond:
- A bond provides a resource that beneficiaries can look to if the trustee commits any breach of his or her duties.
- Beneficiaries must prove that the trustee breached his or her duties before the bond company is required to pay anything.
- To prove that the trustee breached a duty, you will have to go through a trial. An experienced California trust litigation lawyer can assist you in filing a lawsuit.
- The bond company has the right to hire its own lawyer to defend the trustee at trial since it has a vested interest in the trustee winning the case.
Requesting a bond is the right solution in some instances of trustee wrongdoing. To help make this decision, choose the right attorney to represent you.
Bond (noun): A safeguard for the Beneficiaries or Heirs of an Estate from any wrongdoing by the Administrator or Executor that must be in place before the Court grants authority to act on behalf of the Estate. This is similar to an insurance policy, and once the Estate closes the Administrator or Executor may Petition the Court for reimbursement for the premium on the Bond.
Beneficiary (noun): A person who benefits from a trust, will, or life insurance policy. This includes heir, heiress, inheritor, legatee; recipient, receiver, payee, donee, assignee; devisee, grantee.
If you are ready to start your case, then please give us a call or fill out our Get Help Now form. A comprehensive overview of California Probate is available here. Should you have additional questions about trust litigation, you will find plenty of useful information in our Learning Center.