Washington DC Guardian 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: Guardians of a minor’s estate and conservators appointed as fiduciaries in Washington DC
- Purpose: To ensure the ward receives compensation for financial harm if the guardian/conservator fails to fulfill their fiduciary duties
- Who Regulates Guardian Bonds in Washington DC: The Probate Division of the Washington DC Superior Court
Background
DC Code 21-106 and 21-2051 requires all guardians and conservators to be appointed by the Superior Court before assuming their fiduciary duties. The District Council enacted the appointment requirement to ensure guardians and conservators act in the ward’s best interests when managing their estate. To provide financial security for the enforcement of this requirement, most guardians and conservators must purchase and maintain a probate surety bond before becoming appointed as a fiduciary.
What is the Purpose of the Washington DC Guardian Bond?
Washington DC requires guardians of a minor’s estate and conservators to purchase a surety bond as a prerequisite to being appointed as a fiduciary. The bond ensures that the ward will receive compensation for financial harm if the guardian fails to abide by the regulations outlined in DC Code 21-115 and 21-2058. Specifically, the bond protects the ward if the guardian/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 ward if the guardian or conservator does not fulfill their fiduciary duties.
How Can an Insurance Agent Obtain a Washington DC Guardian Bond?
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How is the Bond Amount Determined?
DC Code 21-2058 dictates that the bond amount must equal the value of the assets under the guardian/conservator’s control plus the additional income to be generated by the estate during the next year.
The bond amount may be reduced by the value of any securities deposited that cannot be withdrawn without a court order or any land the guardian/conservator can not sell without authorization from the court.
Can the Bond Amount be Adjusted?
Yes, as DC Code 21-117 dictates that the court may adjust the bond amount or require an additional bond if the current bond is insufficient. Also, DC Code 21-2062 permits any interested person to petition the court to adjust the bond amount or require an additional bond after the guardian/conservator is appointed.
What are the Underwriting Requirements for the Washington DC Guardian Bond?
Most surety companies will examine the following factors when determining eligibility for the Washington DC Guardian bond:
- Fiduciary’s credit history
- Whether or not the estate has an attorney
- Whether or not the fiduciary is a family member
- The fiduciary’s occupation
- Whether or not the guardian or conservator is replacing a prior fiduciary
- If the fiduciary 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 Washington DC Guardian Bond Cost?
Surety companies typically determine the premium rate for Guardian 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 Washington DC Guardian bond:
$1,500,000 Guardian 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?
Washington DC requires guardians of a minor’s estate and conservators to purchase a surety bond as a prerequisite to becoming a court-appointed fiduciary. To paraphrase DC Code 21-2011, a “guardian” is a person appointed by the court to manage a ward’s personal care and/or estate. Likewise, a “conservator” is defined as a person appointed by the court to manage an incapacitated adult’s estate. Additionally, a “ward” is defined as a minor or adult that is incapable of making sound decisions concerning their estate and/or affairs.
Guardians of an incapacitated adult are not required to purchase a bond unless the court determines one is necessary.
How do Washington DC Guardians Become Appointed as Fiduciaries?
Guardians and conservators in Washington DC must navigate several steps to become appointed as fiduciaries. Below are the general guidelines for guardians of a minor’s estate and conservators, but appointees should refer to the appointment statutes or the Superior Court’s website for details on the process.
Guardian of a Minor’s Estate
Step 1 – Determine Priority
Priority to serve as a guardian over a minor’s estate is granted in the following order:
-
- The nominee of the minor if the minor is at least 14 years old
- The parents of the minor
- The spouse of the minor if the spouse is at least 18 years old
Step 2 – Hire an Attorney
Although not explicitly required, it is highly recommended that guardians hire an attorney to assist with the appointment process.
Step 3 – Purchase a Surety Bond
Guardians of a minor’s estate must purchase and maintain a surety bond (limits outlined above).
Step 4 – File with the Register of Wills
Persons seeking guardianship over a minor’s estate must file multiple items with the Office of the Register of Wills at the following address:
515 5th Street, NW
Washington, DC 20001
Guardians can access the petition form online here, and must ensure they submit the following:
-
- Petition for appointment
- Surety bond
- Consent from the minor’s parents
- A proposed order
- Consent to the appointment of the guardian from the minor (if they are at least 14 years old)
Once all items are complete, the guardian and the minor must deliver them in-person and meet with an Assistant Deputy Register of Wills at the time of filing. The assistant deputy will conduct a brief interview with the guardian and the minor to help determine if guardianship is appropriate. The Superior Court will review the documents filed, and if there is a basis for the appointment, it will issue a letter of guardianship to the petitioner.
Conservators
Step 1 – Determine Priority
Priority to serve as a conservator over an incapacitated adult is granted in the following order:
-
- Persons already appointed as a fiduciary over the adult in another jurisdiction
- An individual or corporation nominated by the adult
- The spouse of the incapacitated adult
- An adult child of the incapacitated adult
- A parent of the incapacitated adult
- Any relative of the incapacitated adult who has resided with the person for at least six months before the filing of the petition
- Any other person
Step 2 – Hire an Attorney
Although not explicitly required, it is highly recommended that conservators hire an attorney to assist with the appointment process.
Step 3 – File a Petition for Appointment
Persons seeking a conservatorship over an incapacitated adult’s estate must file multiple forms with the Probate Division of the Superior Court at the following address:
Probate Division
Probate Clerk’s Office, Room 314
515 5th Street, NW
Washington, DC 20001
Conservators must also pay a $45 filing fee payable by check or money order and can utilize the Probate Self-Help Center for assistance in the filing process.
Step 4 – Attend a Hearing
Conservators must attend a hearing conducted by the Superior Court and present evidence as to why the adult is in need of conservatorship. The court will examine the evidence presented by the conservator as well as that presented by the adult 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 Washington DC Guardians File Their Bonds?
Guardians and conservators should submit their completed bond forms, including the power of attorney, to the Probate Division of the Superior Court at the following address:
Probate Division
Probate Clerk’s Office, Room 314
515 5th Street, NW
Washington, DC 20001
The surety bond requires signatures from both the surety company that issues the bond, the applicant, and the clerk of the Probate Division. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name
- Legal name and birthdate of the ward
- Bond amount
- Date the bond is signed
What can Washington DC Guardians do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, guardians and conservators in Washington DC must ensure that they:
- Perform all of their fiduciary duties
- Obey all court orders
- Do not mismanage the estate’s assets
