Fiduciary Bond

Fiduciary Bond

A bond that the executor of an estate posts to ensure he/she performs his/her duties properly. Among these duties is preparing an inventory and disposing it according to the terms of the will of the deceased. The executor forfeits the bond if a probate court determines he/she has failed to live up to his/her duties. It is also called a probate bond.
References in periodicals archive ?
My point is that we have an inviolate fiduciary bond with the public and, because of the impact of corporations on global citizens (see below), our obligation extends to all stakeholders both within and outside the corporate enterprise, including shareholders/bondholders, investors, employees, suppliers, communities where employees live, and the community where the company resides.
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place.
The final regulations further add a nonexclusive list of other fiduciary expenses that are not commonly or customarily incurred by individuals: probate court fees and costs, fiduciary bond premiums, legal publication costs of notices to creditors or heirs, the cost of certified copies of the decedent's death certificate, and costs related to fiduciary accounts.
You will want to know their status as a fiduciary to the plan, and you will want to know what kind of fiduciary bond they have in place, what it covers, and to what extent.
Although the Secretary of Labor is authorized to exempt plans from the bonding requirement in specified situations, depositing plan-owned assets with the Secretary of Labor in lieu of obtaining a fiduciary bond from a corporate surety company does not satisfy the bonding requirement of ERISA.
The regulations also provide that certain other fiduciary expenses are not commonly or customarily incurred by individuals and thus are not subject to the 2% floor, including (without limitation) the following: probate court fees and costs, fiduciary bond premiums, legal publication costs of notices to creditors or heirs, the cost of certified copies of the decedent's death certificate, and costs related to fiduciary accounts [Treasury Regulations section 1.
CNA has become the nation's largest provider of commercial surety bonds, particularly license and permit bonds, fiduciary bonds and public official and court bonds.