A trust is a promise across time — the bond keeps it kept.
The guarantee behind a trustee’s duties
Trustee bonds guarantee that a trustee administering a trust will manage the assets according to the trust’s terms and the law. They most often come up with court-supervised or testamentary trusts, or when a court appoints or replaces a trustee.
What a trustee bond guarantees
The bond guarantees faithful performance of the trustee’s fiduciary duties — proper investment, accounting, and distribution — and compensates beneficiaries for a breach or mismanagement. It is required by the trust instrument and/or the court. Under the widely adopted Uniform Trust Code, a trustee need not give bond unless the trust requires it or the court finds a bond necessary to protect beneficiaries.
Waiver — the norm for private trusts
Most private living trusts waive the bond in the document, so a large share of trustees never post one. But a court can override a waiver where a beneficiary shows their interest is at risk. Because trusts can be large and long-lived, trustee bonds can be sizeable and renew annually; the cost is charged to the trust. Premium generally runs under about 1% for good credit on typical amounts.
Frequently Asked Questions
Is a trustee bond always required?
No. Under the Uniform Trust Code, a trustee needs a bond only if the trust instrument requires it or the court orders one to protect beneficiaries. Most private living trusts waive the bond.
Can a court require a bond even if the trust waives it?
Yes. A court can override a waiver if a beneficiary shows their interest is at risk, and require the trustee to post a bond anyway.
How do I get a trustee bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.