A trustee bond guarantees the Trustee’s performance whilst in office.
What is a trustee bond?
A Trustee Bond is a bond of security or a suretyship. It guarantees that the trustee will duly & faithfully perform their duties as a trustee, minimising any risk of negligent act, error or omission arising and causing a loss to beneficiaries.
Why do you need a trustee bond?
The Master of the High Court may not grant authority to the Trustee unless they have supplied security to the Master’s satisfaction for due and faithful performance of their duties, unless exempt.
When Trustees are required to supply security, they will need to provide a security bond or suretyship from a reputable Insurer.
Frequently Asked Questions
How do the claims work?
The only party that may call up a Trusty Bond is the Master of the High Court. As with all suretyships, should the Trustee default then the Surety will be called up & the Insurer will make good any loss arising from the default.
How much does a Trustee Bond cost?
Both the rate & the wording of the bond are set by the Master of the High Court. Currently the annual rate on Trustee Bonds is 0,6% (excl. VAT) on the asset value of the estate.
Can premiums be paid monthly?
No, the Master of the High Court has set this as an annual rate. All premiums for Trustee Bonds are paid annually. Renewable annually for the duration of the Trust.
How can I avoid a claim?
Claims can easily be avoided through:
- Diligent, honest & fair administration of the Estate.
- Delivering best practices in your industry.
- Keeping abreast of regulations and legislation.
What are the requirements for getting cover?
- An approved application for facility
- Form J344 Undertaking
- Your ID
- Copy of the Trust Deed or Court order
- Form J417 Acceptance of Trusteeship
- Proof of Professional Indemnity Insurance, or details of the professional who will be assisting you with an undertaking to notify the insurer should their mandate be terminated & a suretyship guaranteeing your performance jointly.
Why Choose Us
With our comprehensive offering, we provide appropriate and affordable Surety Bonds for professionals in their respective fields.
As a professional, you need an insurance partner who understands your business risks. Our experienced risk professionals offer expert advice, friendly service and bonds at competitive rates.
How to Get Covered
Complete the short questionnaire and provide us with any relevant details regarding the bond you require.
One of our expert risk professionals will call you to discuss the cover available for you and provide you with any advice you might need.
We'll provide you with a simple, hasslefree quotation for your consideration.
Send us you quote acceptance form and we'll get your bond issued within 24 hours.
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Learn more about Surety Bonds
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