How much does a Conservatorship Bond cost? Conservatorship can be costly because there are fees that are incurred before conservatorship is actually established by the court, and also ongoing fees that continue during conservatorship.
Costs of Conservatorship
Costs Incurred Before Conservatorship is Established
- Court costs for determining capacity
- Attorney fees for petition to determine capacity
- Doctor and social worker fees to examine the ward
Costs Incurred After Conservatorship is Established
- Attorney fees for the guardian or conservator
- Attorney fees for the ward (if required by judge)
- Accounting fees for yearly report
- Court fees for yearly report hearing
- Conservatorship bond cost
Once conservatorship is established, the court usually reimburses the conservator for these fees and expenses. The court does this from the assets of the person being cared for. This can include the premium of the bond.
How Much Does a Conservatorship Bond Cost?
Conservatorship Bond costs are calculated largely on the wealth and credit history of the applicant.
Every case is different, though, and is evaluated individually. Other points of evaluation for your Conservatorship Bond cost include:
- Specifics of case
- Bond obligation
- Bond amount
- Personal credit history
- Personal net worth
- Personal assets
- Attorney involvement
The Conservatorship Bond amount is usually equal to all of the assets of the person being taken care of, plus one year of income for the person. The price you pay is a percentage of this total amount.
Conservatorship Bond Cost Example
For example, if Mary May lives in a $500,000 estate and has a $70,000 investment account and can no longer manage her finances, she might want Lilly May, her daughter, to become her conservator. Lilly May will obtain a conservatorship bond in the amount of $570,000. To secure this bond, Lilly will pay a percentage of this bond amount, which is dependent on her personal credit history.
If Lilly May has exceptional credit (generally over 700), she might only pay, on average and depending on state and surety company rate filings, $1,680 per year (typically 5% or less of the bond amount).
If Lilly May’s credit is less-than-exceptional though, she will have to pay more. If Lilly May has no credit history at all, or if she has marginal credit, she will have a difficult time getting approved for conservatorship in the first place.
Lowering Your Conservatorship Bond Amount
Depending on the applicant’s credit, a conservatorship bond can become quite expensive. Sometimes, a conservator might want to lower the bond amount. The most common way of doing this is by restricting the assets of the person being cared for.
For example (continuing the previous example), if Lilly May wants to lower her payment amount per year, she might only want to insure 200,000 dollars of her mother’s estate—just enough to protect it from being sold. Lilly May’s bond amount will then decrease to 270,000 and the premium will adjust accordingly.
Do You Need a Conservatorship Bond?
If you need to buy a conservatorship bond, it is wise to allow yourself plenty of time to learn all there is to know about the bond and what comes with it. By becoming knowledgeable about what it takes to get a conservatorship bond, you can avoid surprises and road blocks that might come your way.
Getting multiple quotes from different providers can also be a vital step in ensuring you get the best bond at the best price.
You can get a free court bond quote today.