Oklahoma Guardian Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain an Oklahoma Guardian bond.

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: Certain guardians appointed as fiduciaries in Oklahoma
• Purpose: To ensure the ward receives compensation for financial harm if the guardian fails to fulfill their fiduciary duties
• Who Regulates Guardian Bonds in Oklahoma: The district court with jurisdiction over where the ward resides or has property

Background

Oklahoma Statutes 30-2-101 and 30-3-112 require all guardians to be appointed by a court before assuming their fiduciary duties. The Oklahoma legislature enacted the appointment requirement to ensure guardians act in the ward’s best interests when making decisions related to their welfare or managing their property. To provide financial security for the enforcement of this requirement, certain guardians must purchase and maintain a probate surety bond before becoming appointed as a fiduciary.

What is the Purpose of the Oklahoma Guardian Bond?

Oklahoma requires certain guardians 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 Oklahoma Statute 30-4-201. Specifically, the bond protects the ward if the guardian fails to adhere to all court orders or mismanages the ward’s property.

For example, if a guardian uses money from the ward’s bank account to pay for the guardian’s personal expenses or mishandles the ward’s property, the ward can file a claim against the guardian’s bond to recoup their losses. In short, the bond is a type of insurance in favor of the ward if the guardian does not fulfill their fiduciary duties.

How Can an Insurance Agent Obtain an Oklahoma Guardian Bond?

BondExchange makes obtaining a Oklahoma Guardian bond easy. Simply log-in to your account and use our keyword search to find the “Guardian” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

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How is the Bond Amount Determined?

Oklahoma Statute 30-4-201 dictates that the bond must be in an amount sufficient to protect the estimated value of the minor or incapacitated adult’s property, and should be no less than the value of the ward’s intangible personal property. The court will determine the final bond amount required in each guardianship case.

Can the Bond Amount be Adjusted?

Oklahoma Statute 30-4-201 allows the court to adjust the required bond amount or require an additional bond if the current bond is insufficient. Oklahoma Statute 30-4-763 also allows the court to require an additional bond if the guardian decides to sell or mortgage any real property. The court may change the required bond amount or require a new bond at any point during or after the appointment process if necessary.

What are the Underwriting Requirements for the Oklahoma Guardian Bond?

Most surety companies will examine the following factors when determining eligibility for the Oklahoma Guardian bond:

• Guardian’s credit history
• Whether or not the estate has an attorney
• Whether or not the guardian is a family member
• The guardian’s occupation
• Whether or not the guardian is replacing a prior fiduciary
• If the guardian 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 Oklahoma 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 Oklahoma Guardian bond:

$1,500,000 Guardian Bond Cost

Who is Required to Purchase the Bond?

Oklahoma requires certain guardians to purchase a surety bond as a prerequisite to becoming a court-appointed fiduciary. To paraphrase Oklahoma Statute 30-1-111, a “guardian” is an individual or organization appointed as a fiduciary over a ward’s person and/or property. Additionally, a “ward” is defined as a minor or adult that is incapable of making sound decisions concerning their property and/or well-being.

There are different kinds of guardianships available for both adults and minors in Oklahoma, as outlined below:

• • General Guardian: A guardian who is responsible for all the property of the ward they are caring for and may be responsible for the ward’s person as well
  • Limited Guardian: A guardian who may be held responsible for some of the property of the ward they are caring for and may be responsible for the ward’s person, depending on how far the court extends their powers.
  • Special Guardian: A guardian who is appointed over a ward in emergency situations only and typically has powers for no more than 30 days

Guardians are not required to purchase a surety bond, unless explicitly required by the court, in the following situations:

• The court determines that a bond is not necessary to protect the ward or their property
• The value of the ward’s anticipated annual income plus the value of their personal property is less than $40,000 and the guardian is an immediate family member of the ward
• A special guardian is appointed over a ward’s person only

How do Oklahoma Guardians Become Appointed as Fiduciaries?

Guardians in Oklahoma must navigate several steps to become appointed as fiduciaries. Below are the general guidelines, but appointees should refer to the appointment statutes or the Oklahoma Legal Aid Services’ website for details on the process.

Guardians of a Minor

Step 1 – Hire an Attorney

Although not explicitly required, it is highly recommended that guardians hire an attorney to assist with the guardianship process. Guardians should also review the handbook for minor guardianships created by the Oklahoma Bar Association.

Step 2 – Determine Priority

Priority to serve as guardian will be given in the following order:

• • The minor’s parents or their nominee, if the minor is at least 14 years old
  • The grandparent of the minor
  • The nominee given in the minor’s parent’s will
  • A relative of either parent of the minor
  • The person with whom the child has been living
  • Any other person deemed by the court to be suitable and provide adequate care to the minor

The court will appoint the guardian best suited for the minor and may choose to appoint a person with lower priority or without priority. When determining if a person is suitable for guardianship, the court will consider multiple aspects such as the person’s criminal history, financial history, and their personal relationship with the minor.

Step 3 – File All Required Forms

Persons seeking guardianship over a minor must file a petition for appointment with the district court of the county where the minor resides. Petitioners can obtain the necessary forms online here or from the court, and must ensure they submit the following items:

• • Petition for Letters of Guardianship (Minor)
  • OK Sex Offenders Registration Act- Affidavit
  • Uniform Child Custody Jurisdiction and Enforcement Act- Affidavit
  • Plan for the Care and Treatment of the Ward
  • Plan for the Management of the Property of the Ward

All documents must be notarized prior to filing with the county courthouse, and petitioners must pay a filing fee to open a guardianship case. Once filed, petitioners should schedule their minor guardianship hearing with the judge at least two weeks in advance.

Step 4 – Complete the Background Checks

Oklahoma Statute 30-2-101 requires petitioners seeking guardianship over a minor to complete multiple background checks to determine eligibility for appointment. Petitioners can complete the state background check online here or at the OSBI office at the following address:

6600 North Harvey Place
Oklahoma City, OK 73116

The background check costs $17 to complete, and the results must be filed with the county clerk. Oklahoma also requires guardians to complete a DHS Child Abuse and Neglect Search, and instructions on completing this step can be found here.

Step 5 – Notify the Appropriate Parties

After submitting the required items to the court, petitioners must notify all of the interested persons listed in the petition by regular U.S. Mail. The notice must include a copy of the notice of hearing along with a copy of the petition, and the petitioner must serve notice at least 10 days before the hearing. Once complete, petitioners must file proof of giving notice to each entitled person with the court.

Step 6 – Attend a Hearing

Petitioners must attend a hearing conducted by the court and present evidence as to why the minor is in need of guardianship. The court will examine the evidence presented by the petitioner as well as that presented by the individual being evaluated (if any) and make a determination as to whether or not guardianship is necessary.

Any interested person can apply to the court to participate in the hearing. If the court finds a basis for the appointment, it will issue a letter of guardianship to the petitioner.

Step 7 – Purchase a Surety Bond

Unless otherwise exempt, guardians of a minor must purchase and maintain a surety bond (limits outlined above).

Guardians of an Adult

Step 1 – Hire an Attorney

Although not explicitly required, it is highly recommended that guardians hire an attorney to assist with the guardianship process. Guardians should also review the handbook for adult guardianships created by the Oklahoma Bar Association.

Step 2 – Determine Priority

Priority to serve as guardian will be given in the following order:

• • The proposed ward’s nominee
  • Persons already appointed as a fiduciary over the proposed ward in this state or another
  • A person nominated by the will of a deceased parent, spouse, or adult child of the proposed ward
  • The proposed ward’s spouse, adult child, parent, or sibling
  • A relative of the proposed ward who has resided with the individual for at least 6 months before the petition is filed

The court will appoint the guardian best suited for the proposed ward and may choose to appoint a person with lower priority or without priority. When determining if a person is suitable for guardianship, the court will consider multiple aspects such as the person’s criminal history, financial history, and personal relationship with the proposed ward.

Step 3 – File All Required Forms

Persons seeking guardianship over an adult must file a petition for appointment with the district court with jurisdiction over where the adult resides. Petitioners can obtain the necessary forms online here or from the court, and must ensure they submit the following forms:

• • Petition for Appointment of Guardian
  • Order for Hearing Petition for Appointment of Guardian
  • Notice to Ward of Hearing Petition
  • Notice of Hearing Petition for Appointment of Guardian
  • Affidavit of Service and Affidavit of Mailing
  • Initial Plan for the Care and Treatment of the Ward
  • Plan for Management of the Property of the Ward

All documents must be notarized prior to filing with the county courthouse, and petitioners must pay a filing fee to open a guardianship case. Once filed, petitioners should schedule their minor guardianship hearing with the judge immediately after.

Step 4 – Notify the Appropriate Parties

After submitting the required items to the court, petitioners must notify all of the following parties at least 10 days before the hearing:

• • The proposed ward and their spouse, attorney, adult children, or parents
  • Any person nominated to serve as guardian by will or other writing
  • The person who currently has care and custody of the proposed ward
  • The Department of Human Services or Department of Mental Health and Substance Abuse Services, if providing services to the ward
  • Any other person as directed by the court

The proposed ward must be served notice personally by a sheriff or licensed process server. All other parties can be notified by mail. Once complete, petitioners must file proof of giving notice to each entitled person with the court.

Step 5 – Attend a Hearing

Guardians must attend a hearing conducted by the court and present evidence as to why the adult is in need of guardianship. The court will examine the evidence presented by the guardian as well as that presented by the individual being evaluated (if any) and make a determination as to whether or not guardianship is necessary.

Any interested person can apply to the court to participate in the hearing. If the court finds a basis for the appointment, it will issue a letter of guardianship to the petitioner.

Step 6 – Purchase a Surety Bond

Unless otherwise exempt, guardians of an adult must purchase and maintain a surety bond (limits outlined above).

How do Oklahoma Guardians File Their Bonds?

Guardians should file their completed bond forms, including the power of attorney, to the clerk of the district court with jurisdiction over where the ward resides or has property.

The surety bond requires signatures from 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 of the entity/individual(s) buying the bond
• Legal name and county of the ward
• Surety company’s name and state of incorporation
• Bond amount
• Date the bond is signed
• Date the guardian was appointed
• Type of fiduciary relationship
• The judicial district of the court overseeing the case

What can Oklahoma Guardians do to Avoid Claims Made Against Their Bonds?

To avoid claims against their bonds, guardians in Oklahoma must ensure that they:

• Perform all of their fiduciary duties
• Obey all court orders
• Do not mismanage the ward’s property
• Obtain court approval before using any of the wards’ funds