how much for a conservator surety bond?

[Spock]

Just got the bill for a 1 year conservato bond for my Dad's affairs.
Its over $2600 a year to insure less than 950K of assets... that's $220+/month!


It was arranged by the atty's office on short notice after the emergency hearing.



Does this amount sound comparable to what other conservators here are paying??
What bond company are you using?

[pb4uski]

I've done it twice and never needed one.... but assets were only ~$250k in one instance and ~$25k in the other.

The impression that I had is that the court was thankful that a responsible relative was willing to step up and serve.

[Sunset]

So that is barely more than 1/4 of a percent.

Doesn't seem so steep in percent terms. As to what it is for, I have no firm idea.

However, if someone else was the conservator (say like me) , wouldn't that insurance seem cheap in case I stole the money ?

[Spock]

Quote:

Originally Posted by pb4uski I've done it twice and never needed one.... but assets were only ~$250k in one instance and ~$25k in the other. The impression that I had is that the court was thankful that a responsible relative was willing to step up and serve.

The court here would not approve conservatorship until the bond was in place.

[Lakewood90712]

I have also been a conservator , 2006 to 2014. bond was under $ 500 yr, assets + yearly income , not including real estate were under $ 200k. the real estate assets of 1 mil + were not required to be cov. by bond, because it could not be sold or encumbered w/o direct court approval.

your state may vary.

[Spock]

Quote:

Originally Posted by Sunset So that is barely more than 1/4 of a percent. Doesn't seem so steep in percent terms. As to what it is for, I have no firm idea. However, if someone else was the conservator (say like me) , wouldn't that insurance seem cheap in case I stole the money ?

Almost all the assets are in a revocable trust, of which I was already co-trustee or accounts where I was already a joint holder. Since most of the assets are illiquid rental properties (one of which the ward tried to give away to an exploitative home health aide), the % of spendable cash is closer to 2%.
My personal assets are at risk before the surety bond pays out.
A $3M personal umbrella liability policy is only a quarter of what the surety bond is covering for 1/3 less liability.
I was expecting a couple hundred dollars, not a couple hundred per month.

[Spock]

Quote:

Originally Posted by Lakewood90712 I have also been a conservator , 2006 to 2014. bond was under $ 500 yr, assets + yearly income , not including real estate were under $ 200k. the real estate assets of 1 mil + were not required to be cov. by bond, because it could not be sold or encumbered w/o direct court approval. your state may vary.

What company did you get your bond from?

[ivinsfan]

Quote:

Originally Posted by Spock Almost all the assets are in a revocable trust, of which I was already co-trustee or accounts where I was already a joint holder. Since most of the assets are illiquid rental properties (one of which the ward tried to give away to an exploitative home health aide), the % of spendable cash is closer to 2%. My personal assets are at risk before the surety bond pays out. A $3M personal umbrella liability policy is only a quarter of what the surety bond is covering for 1/3 less liability. I was expecting a couple hundred dollars, not a couple hundred per month.

Sorry you were surprised by the cost but in your shoes I'd just quit thinking about it and move on, it cost what it cost. You are in a really difficult situation and need less stress and concern, not more.

[Spock]

Quote:

Originally Posted by ivinsfan Sorry you were surprised by the cost but in your shoes I'd just quit thinking about it and move on, it cost what it cost. You are in a really difficult situation and need less stress and concern, not more.

Yeah. I'm used to squeezing every penny until it screams. I've already spent $10K on this process not including the March atty bills (emergency hearing) and the final petition hearing isn't until early May. So this will probably be $30K or more before done.

When we started the process the atty estimated $5K for a contested petition... my atty alone has already charged that much before the emergency hearing. Obviously his estimate did not include $2.6 for the surety bond. (And this was one of the most highly recommended elderlaw firms available).


I've been telling myself "$30K is only 20% of the house he tried to give away".

[ivinsfan]

Quote:

Originally Posted by Spock Yeah. I'm used to squeezing every penny until it screams. I've already spent $10K on this process not including the March atty bills (emergency hearing) and the final petition hearing isn't until early May. So this will probably be $30K or more before done. When we started the process the atty estimated $5K for a contested petition... my atty alone has already charged that much before the emergency hearing. Obviously his estimate did not include $2.6 for the surety bond. (And this was one of the most highly recommended elderlaw firms available). I've been telling myself "$30K is only 20% of the house he tried to give away".

Peace of mind is priceless but it costs money to get there. This cost is out of your control and was the way only to protect your DD and his assets.

[Lakewood90712]

Quote:

Originally Posted by Spock What company did you get your bond from?

Bond services of california , located in Los Angeles.

[Sunset]

Shop around for a new bond service for next year, or when it makes sense