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Nevada Guardian Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Nevada 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: Most guardians of the estate appointed as fiduciaries in Nevada
- Purpose: To ensure the protected person receives compensation for financial harm if the guardian mismanages the protected person’s assets
- Who Regulates Guardian Bonds in Nevada: The district court in the county where the protected person resides
Background
Nevada Statute 159.0487 require all guardians to be appointed by a court and swear an oath before assuming their fiduciary duties. The Nevada legislature enacted the appointment requirement to ensure guardians act in the protected person’s best interests when making decisions related to their welfare or managing their estate. To provide financial security for the enforcement of this requirement, most guardians must purchase and maintain a probate surety bond before becoming appointed as a fiduciary.
What is the Purpose of the Nevada Guardian Bond?
Nevada requires most guardians to purchase a surety bond as a prerequisite to being appointed as a fiduciary over an estate. The bond ensures that the protected person will receive compensation for financial harm if the guardian fails to abide by the regulations outlined in Nevada Statutes 159.065 and 159.069. Specifically, the bond protects the protected person if the guardian fails to adhere to all court orders or mismanages the estate’s assets.
For example, if a guardian uses money from the protected person’s bank account to pay for the guardian’s personal expenses or mixes the estate’s funds with their own, the protected person 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 protected person if the guardian does not fulfill their fiduciary duties.
How Can an Insurance Agent Obtain a Nevada Guardian Bond?
BondExchange makes obtaining a Nevada 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.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Nevada Statute 159.065 grants the court the authority to determine the required bond amount on a case-by-case basis. However, the court must consider the estate’s value and what is necessary to safeguard the protected person’s estate when setting the amount.
For the guardian of a protected person who receives benefits from the Department of Veterans Affairs, the surety bond amount must be in an amount no less than the value of the estate’s personal property plus the estimated income to be generated by the estate over the next year.
Can the Bond Amount be Adjusted?
Nevada Statute 159.067 allows the court to adjust the required bond amount or require an additional bond if they deem one necessary or if the current bond is insufficient. The court may also require an additional bond if the guardian decides to sell or mortgage any real property. The court may change the required bond amount at any point during or after the appointment process if necessary.
What are the Underwriting Requirements for the Nevada Guardian Bond?
Most surety companies will examine the following factors when determining eligibility for the Nevada 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 Nevada 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 Nevada Guardian bond:
$1,500,000 Guardian Bond Cost
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| 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 |
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Who is Required to Purchase the Bond?
Nevada requires most guardians of the estate to purchase a surety bond as a prerequisite to becoming a court-appointed fiduciary. To paraphrase Nevada Statute 158.010, a “guardian” is an individual or organization appointed as a fiduciary over a protected person’s person and/or estate. Additionally, a “protected person” is defined as a minor or adult that is incapable of making sound decisions concerning their estate and/or well-being.
There are different kinds of guardianships available for both adults and minors in Nevada, as outlined below:
- Guardian of the Person: A guardian authorized to take custody of and provide care for a protected person, including making medical and personal decisions on their behalf. In this kind of guardianship, the court will not require a bond.
- Guardian of the Estate: A guardian with legal control over the finances and property of a protected person. Guardians of the estate are required to obtain a bond.
- Guardian of the Person and the Estate: A guardian responsible for the care of a protected person and the legal control of a protected person’s estate. Guardians of the person and estate must obtain a bond.
Guardians are not required to purchase a surety bond, unless explicitly required by the court, in the following situations:
- The guardian is of the person only and the protected person owns no assets
- If the guardian of the estate is a banking corporation doing business in Nevada
- The court determines that a bond is not necessary to protect the estate’s assets
- The guardian is nominated under a written will or power of attorney and the will specifically waives the bond requirement
- The guardian requests the court to restrict a portion of the estate’s assets in lieu of filing a bond
How do Nevada Guardians Become Appointed as Fiduciaries?
Guardians in Nevada must navigate several steps to become appointed as fiduciaries. Below are the general guidelines, but appointees should refer to the appointment statutes or the Nevada Courts Self-Help Center’s website for details on the process.
Guardians of a Minor
Step 1 – Meet the Qualifications
Persons who meet any of the following criteria are ineligible for appointment as a guardian:
-
- The person is a minor or incompetent individual
- The person who has filed for bankruptcy within the last seven years
- The person has been convicted of a felony or has committed a crime related to abuse, domestic violence, or abandonment
- The person has been suspended or disbarred from practicing law, accounting, or any other profession that requires a state license
The court may appoint anyone who meets the above criteria if they determine the appointment is in the best interest of the minor.
Step 2 – Determine Priority
Priority to serve as guardian will be given in the following order:
-
- The minor’s parents or their nominee
- The adult sibling of the minor
- The grandparent of the minor
- The uncle or aunt of the minor
- Any recommendation made by a master of the court
- Any recommendation made by a guardian at litem or an agency that provides child welfare services 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.
Step 3 – Hire an Attorney
Although not explicitly required, it is highly recommended that guardians hire an attorney to assist with the guardianship process.
Step 4 – File All Required Forms
Persons seeking guardianship over a minor must file a petition for appointment with the district court in the county where the minor resides. Petitioners can obtain the necessary forms online here or from the court, and must ensure they include the following information:
-
- Personal information and a form of identification of the minor
- Personal information about the person seeking the appointment
- General statement and evaluation of the minor’s condition and estate
- The reasoning why guardianship is necessary
- Any additional information requested by the court
The minor for whom guardianship is sought, a government agency, a nonprofit corporation, and any person interested in the welfare or estate of the minor may petition the court to begin protective proceedings over a minor. Petitioners must pay a filing fee of $5 for estates valued over $2,500. For estates valued under $2,500, no filing fee is required.
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. The notice must include the time and place of the hearing, 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.
If the minor’s parents consent to the appointment, petitioners may not be required to attend a hearing. 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.
Step 2 – Meet the Qualifications
Persons who meet any of the following criteria are ineligible for appointment:
-
- The person is a minor or incompetent individual
- The person who has filed for bankruptcy within the last seven years
- The person has been convicted of a felony or has committed a crime related to abuse, domestic violence, or abandonment
- The person has been suspended or disbarred from practicing law, accounting, or any other profession that requires a state license
The court may appoint anyone who meets the above criteria if they determine the appointment is in the best interest of the adult. The court will often consider if the person seeking appointment is a resident of the state and if they are qualified to be appointed as guardian.
Step 3 – Determine Priority
Priority to serve as guardian over an adult will be given in the following order:
-
- The spouse or domestic partner of the adult
- The child of the adult
- The parent of the adult
- Any relative who has resided with the adult in the past six months preceding the filing of the petition or any relative who has a power of attorney executed by the adult
- Any relative currently acting as an agent for the adult
- A sibling of the adult
- A grandparent or grandchild of the adult
- An uncle, aunt, niece, nephew, or cousin of the adult
- Any other person in a familial relationship with the adult
- Any person recommended by a master of court
- Any other person the court deems suitable
The court will appoint the guardian best suited for the adult and may choose to appoint a person with lower priority or without priority.
Step 4 – File All Required Forms
Persons seeking guardianship over an adult must file a petition for appointment with the district court in the county where the adult resides. Petitioners can obtain the necessary forms online here or from the court, and must ensure they submit the following items:
Petitioners must pay a filing fee of $5 for estates valued over $2,500. For estates valued under $2,500, no filing fee is required. The adult for whom guardianship is sought, a government agency, a nonprofit corporation, and any person interested in the welfare or estate of the adult may petition the court to begin protective proceedings.
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. The notice must include the time and place of the hearing, 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
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 7 – Purchase a Surety Bond
Unless otherwise exempt, guardians of an adult must purchase and maintain a surety bond (limits outlined above).
How do Nevada Guardians File Their Bonds?
Guardians should file their completed bond forms, including the power of attorney, to the clerk of the district court of the county where the protected person resides.
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 and address of the entity/individual(s) buying the bond
- Legal name and county of the protected person
- Surety company’s name
- Bond amount
- Date the bond is signed and goes into effect
- Date the guardian was appointed
- Type of fiduciary relationship
- The judicial district of the court overseeing the case
What can Nevada Guardians do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, guardians in Nevada must ensure that they:
- Perform all of their fiduciary duties
- Obey all court orders
- Do not mismanage the protected person’s estate
- Do not spend or sell the protected person’s assets without court approval
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