Connecticut Conservator Bond: A Comprehensive Guide
At a Glance:
- Average Cost: Calculated based on a tiered structure
- Bond Amount: Determined on a case-by-case basis (more on this later)
- Who Needs It: Most conservators appointed as fiduciaries in Connecticut
- Purpose: To ensure that the conserved person receives compensation for financial harm if the conservator mishandles the estate’s assets
- Who Regulates Conservator Bonds in Connecticut: The probate court with jurisdiction over where the conserved person resides
Background
Connecticut Statute 45a-650 requires all persons seeking conservatorship over an adult to be appointed by a court before assuming their fiduciary duties. The Connecticut legislature enacted the appointment requirement to ensure that conservators act in the adult’s best interests when managing their affairs. To provide financial security for the enforcement of this requirement, most conservators must purchase and maintain a probate surety bond before becoming appointed as a fiduciary.
Connecticut has two different types of conservatorships: voluntary and involuntary. In a voluntary conservatorship, the court appoints a conservator at the request of an adult seeking assistance in managing his or her affairs. In an involuntary conservatorship, the court appoints a conservator for an adult, regardless of whether or not they want one, they find that the adult is incapable of caring for themselves or managing their finances.
What is the Purpose of the Connecticut Conservator Bond?
Connecticut requires most conservators to purchase a surety bond as a prerequisite to being appointed as a fiduciary over a conserved person’s estate. The bond ensures that the conserved person will receive compensation for financial harm if the conservator fails to abide by the regulations outlined in Connecticut Statute 45a-650. Specifically, the bond protects the conserved person if the conservator fails to adhere to all court orders or mismanages the estate’s assets. In short, the bond is a type of insurance in favor of the conserved person if the conservator does not fulfill their fiduciary duties.
How Can an Insurance Agent Obtain a Connecticut Conservator Bond?
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How is the Bond Amount Determined?
Connecticut Probate Court Rules of Procedure 35.6 dictates that the bond amount must equal the value of the assets under the conservator’s control plus the additional income to be generated by the estate during the applicable accounting period.
The bond amount may be reduced by the value of any assets deposited into a restricted account or any real property that the conservator does not have the power to sell.
Can the Bond Amount be Adjusted?
Yes, as Connecticut Probate Court Rules of Procedures 35.8 and 35.9 dictate that the court may adjust the bond amount if there is a change in the value of the estate.
What are the Underwriting Requirements for the Connecticut Conservator Bond?
Most surety companies will examine the following factors when determining eligibility for the Connecticut Conservator bond:
- Conservator’s credit history
- Whether or not the estate has an attorney
- Whether or not the conservator is a family member
- The conservator’s occupation
- Whether or not the conservator is replacing a prior fiduciary
- If the conservator has ever committed a felony
- Whether or not there is any ongoing business in the estate
- If a creditor is requiring the bond
- If the bond amount is greater than or equal to the estate’s value
How Much Does the Connecticut Conservator Bond Cost?
Surety companies typically determine the premium rate for Conservator bonds based on a tiered structure, so larger bond amounts will be charged a lower premium rate than smaller bonds.
The following table illustrates the pricing structure for the Connecticut Conservator bond:
$1,500,000 Conservator Bond Cost
| Bond Amount | Premium Rate | Total Bond Cost |
|---|---|---|
| First $20,000 | 0.75% | $150 |
| Next $40,000 | 0.60% | $240 |
| Next $140,000 | 0.50% | $700 |
| Next $300,000 | 0.375% | $1,125 |
| Next $1,000,000 | 0.25% | $2,500 |
| Total cost of $4,715 |
Who is Required to Purchase the Bond?
Connecticut requires most conservators to purchase a surety bond as a prerequisite to becoming a court-appointed fiduciary. To paraphrase Connecticut General Statute 45a-644, a conservator is an individual or organization appointed as a fiduciary to make decisions over a person’s care and/or estate.
Exemptions to this definition include:
- Hospitals
- Nursing home facilities
- Residential care homes
Likewise, a “conserved person” is defined as an adult for whom a conservator has been appointed that is incapable of managing their personal care and/or financial affairs. There are two different kinds of conservatorships, as outlined below:
- Conservator of the Person: A conservator who makes decisions for a person’s personal affairs and ensures that the person’s basic needs are met
- Conservator of the Estate: A conservatorship that supervises a person’s estate and finances, including caring for property and managing their bank accounts
Connecticut General Statute 45a-650 dictates that conservators of an estate are required to obtain a bond while conservators of a person may be required to obtain a bond if the court determines one is necessary. The court may choose to waive the bond requirement in the following instances:
- The estate is worth less than $20,000 or the amount of the estate not restricted by court order is less than $10,000
- The conserved person waives the bond requirement in a voluntary conservatorship
- The conserved person designated the conservator in advance and waived the bond requirement in an involuntary conservatorship
How do Connecticut Conservators Become Appointed as Fiduciaries?
Conservators in Connecticut must navigate several steps to become appointed as fiduciaries. Below are the general guidelines for conservators, but appointees should refer to the appointment statutes or the state’s Probate Court User Guide for details on the process.
Voluntary Conservatorship
Step 1 – Hire an Attorney
Although not explicitly required, it is highly recommended that conservators hire an attorney to assist with the conservatorship process.
Step 2 – File a Petition for Appointment
The individual seeking the assistance of a conservator must file a Petition/Voluntary Representation by Conservator Form (PC-301) with the probate court with jurisdiction over where the individual resides.
Step 3 – Attend a Hearing
The individual must attend a hearing conducted by the probate court and present evidence as to why they are in need of conservatorship. The court will examine the evidence presented by the individual and make a determination as to whether or not conservatorship is necessary. If the court finds a basis for the appointment, it will grant voluntary representation for the individual and appoint the conservator requested in the petition.
Step 4 – Purchase a Surety Bond
Unless otherwise directed by the court, the appointed conservator must purchase and maintain a surety bond (limits outlined above).
Involuntary Conservatorship
Step 1 – Hire an Attorney
Although not explicitly required, it is highly recommended that conservators hire an attorney to assist with the conservatorship process.
Step 2 – File a Petition for Appointment
Persons seeking conservatorship over a conserved person’s estate must file a Petition / Appointment of Conservator Form (PC-300) with the clerk of the probate court with jurisdiction over where the person resides. The probate court will hold a hearing within 30 days of receiving the petition.
Step 3 – Notify the Appropriate Parties
After submitting the appropriate files to the court, persons seeking conservatorship must have another adult, known as a server, notify the interested parties involved in the case. A state marshal or other authorized person can serve the notice of hearing to the conserved person and must do so at least 10 days before the hearing date. The probate court will notify the conserved person’s children, relatives, and other interested parties at least 10 days before the hearing date.
Step 4 – Attend a Hearing
Conservators must attend a hearing conducted by the probate court and present evidence as to why the conserved person is in need of conservatorship. The conservator will present medical evidence from a Connecticut physician about the conserved person’s condition, and the court may require an additional evaluation by another medical professional if necessary.
The court will examine the evidence presented by the conservator as well as that presented by the conserved person being evaluated (if any) and make a determination as to whether or not conservatorship is necessary. If the court finds a basis for the appointment, it will issue a letter of conservatorship to the petitioner.
Step 5 – Purchase a Surety Bond
Unless otherwise directed by the court, conservators must purchase and maintain a surety bond (limits outlined above).
How do Connecticut Conservators File Their Bonds?
Conservators should submit their completed bond forms, including the power of attorney, to the probate court with jurisdiction over where the conserved person resides.
The surety bond requires signatures from both the surety company that issues the bond, the applicant, and the judge presiding over the case. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name and address
- Legal name of the conserved person
- Location and district number of the probate court
- Bond amount
- Fiduciary title
- Date the bond is signed
What can Connecticut Conservators do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, conservators in Connecticut must ensure that they:
- Perform all of their fiduciary duties
- Obey all court orders
- Do not mismanage the estate’s assets
