A guardian is a person who has legal authority to care for the personal and property interests of another person, also known as a ward. Guardians are typically used in three situations: guardianship for an incapacitated senior (due to old age or infirmity), a minor or a developmentally disabled adult.
A guardianship bond is an agreement which is applied for when the guardian is determined by the courts. Like any other surety bond, a guardianship bond is a three-party contract. The three parties who are named in the surety bond is the court, the guardian, and the surety. It provides a written assurance that if the guardian doesn’t fulfill their legal responsibilities, the surety will pay for the damages and seek reimbursement from the guardian.
The main difference between a guardianship bond and insurance is that the guardianship bond doesn’t protect the applicant, but, instead, protects the ward. The guardianship bond protects against losses or damages should the guardian behave improperly or unethically. The total amount of a guardianship bond is determined by a judge and is not fixed. But, generally, the bonded amount will vary based on the specifics of the case.