When is it a Good Idea to have a Guardianship Bond?

A guardianship bond is when a person (the guardian) is appointed by the court to care for the financial affairs of another person (known as the ward).  Although each guardianship bond may vary, as far as specific terms, it is often an invaluable reassurance to the family of the ward.  It also helps to guard against those who may seek guardianship for their own financial gains.

Happy senior lady playing with little boy and girl in blooming rose garden. Grandmother with grand children sitting on a bench in summer park with beautiful flowers. Kids gardening with grandparent.

Like other surety bonds, a guardianship bond is a three party contract between the courts (the obligee), the guardian (the principal) and the surety.  If a ward’s financial affairs are taken advantage of by the guardian, the guardianship bond will pay for the damages and then will seek compensation from the guardian to recover the money lost due to negligence or fraud.

A guardianship bond can prove invaluable in several situations.  One such being when the guardian proves to be incompetent.  This may not be due to negligence on the guardian’s side, but rather that the guardian is not equipped to fulfill the contractual obligations or there aren’t sufficient instructions for the guardian to follow, in order to provide adequate care.

In more dire cases, a ward’s financial affairs may be exploited.  In comparison to a guardian who is deemed incompetent, one who is proven to exploit the ward does so intentionally.  It can range from the ward’s name being exploited to manipulating the ward to procuring sensitive information, in order to gain full access to the ward’s finances.

In some cases a guardian is found to have manipulated or used undue influence to gain access to financial transactions, sensitive information, as well as monetary value can be lost.

In a more aggressive situation, intimidation or coercion may be deemed as the tool used to gain financial betterment for the guardian.  This can either be verbal or, in extreme cases, physical violence.

In a final scenario, elder abuse can range from exploitation to intimidation and coercion, and even physical violence.  But it is categorized by using any of the above tactics and targeting the elderly directly.

In today’s world, we are more connected, but this may sometimes be from a distance.  In these cases, a guardian is vital in providing care for those who are not able to do so themselves or able to rely on family.  A guardianship bond is a safety measure to ensure that the ward’s best interests are upheld.


Guardianship bond contracts can vary from case to case.  If the guardian is found to be incompetent, using means of exploitation, coercion, intimidation or manipulation, exacting undue influence or abusing the ward, a guardianship bond will ensure that any financial hardship incurred due to the guardian’s actions, will be reimbursed to the ward.

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