Guardian Surety Bond - Required In Montana?

[joshro]

Can someone help me understand court surety bonds as they relate to the situation described here?

1. Are guardians & conservators, appointed by court (Kalispell, Montana) required to obtain surety bond?

2. If a guardian/conservator blatantly misuses trust funds for personal gifts, personal bills, personal dinners, or steals from a trust fund that he/she is responsible for managing, does the surety bond come into play, in order to pay back the trust in the even that the guardian/conservator is unable?

If the above is an incorrect statement, what is the surety bond used for?

3. Does guardian/conservator obtain surety bond for an amount that's equal or possibly greater than the amount of money in the trust?

Thank you so much for those of you who end up providing your feedback. I am dealing with a brother who unfortunately was taken over by greed and abused his power of guardian/conservator to our incapacitated mother. Money is missing, annual reporting was incomplete, final accounting is incomplete and shows major discrepancies and big holes. Nothing adds up; there are no receipts or check registers and for that matter, it seems that my brother paid each member of his family numerous times for things that don

In addition, $60,000.00 from the sell of our mothers home is missing and has not been accounted for in any documentation. Meanwhile, my brother has moved into a new home, and his family is doing rather well - all of a sudden.

Does the surety bond safeguard the trust in situations like this?

Thank you,
joshR

[Riskwriter]

1. Are guardians & conservators, appointed by court (Kalispell, Montana) required to obtain surety bond?

Not always. It can be a court requirement and/or it can be a required part of a will.

2. If a guardian/conservator blatantly misuses trust funds for personal gifts, personal bills, personal dinners, or steals from a trust fund that he/she is responsible for managing, does the surety bond come into play, in order to pay back the trust in the even that the guardian/conservator is unable?

Yes. That is exactly what the bonds intention is. It is to protect the individual or estate from the bonded individuals misuse of the estate of the minors funds.

3. Does guardian/conservator obtain surety bond for an amount that's equal or possibly greater than the amount of money in the trust?

Once again this will vary. The court will determine what is an acceptable amount. For instance, many NJ courts require a bond in the amount of 120% of the assets in the estate to ensure there are adequate funds.

I would get a copy of the bond itself, hire a lawyer and find out how the bond might protect in this situation.
best of luck

[Admin]

Great answer! Joshro, when you are ready to move forward, you can apply for a guardianship bond