SPECIAL NEEDS TRUST BONDS

SPECIAL NEEDS TRUST BOND

American Surety Bonds Agency helps trustees secure the bond required to protect a special needs trust’s beneficiary. Because requirements vary by court and by the size of the trust, our underwriting team reviews your case details before determining your bond amount and next steps.

A Special Needs Trust Bond is a fiduciary bond required of the trustee administering a special needs trust — a trust set up to hold and manage assets for a person with a disability without disqualifying them from need-based government benefits like Medicaid or SSI. The bond guarantees the trustee manages the trust’s assets properly and fulfills their fiduciary duties.

This bond protects the trust’s beneficiary from mismanagement, fraud, or misuse of trust funds by the trustee. It does not guarantee the outcome of how the trust is ultimately used — it guarantees the specific fiduciary obligation stated in the bond form, trust document, or court order.

This bond goes by a couple of other names. You may also see it called:

• Fiduciary Bond
• Special Needs Trustee Bond

These generally refer to the same category of bond described on this page.

A court or trust document may require this bond before a trustee can begin administering a special needs trust. You may need this bond if you are:

• Serving as the individual trustee of a first-party (self-settled) special needs trust
• Serving as the individual trustee of a third-party special needs trust established by a family member
• Appointed trustee under a court order or trust document that requires a bond

Corporate trustees — banks or trust companies — are typically not required to post this bond, since they generally carry their own fidelity and fiduciary liability coverage; this bond is usually required of individual trustees instead. Your attorney can advise you about the requirements in your specific case; American Surety Bonds Agency assists with the bond application and underwriting process.

Special Needs Trust Bonds are underwritten individually. Depending on the case, the underwriter may request:

• A completed court bond application
• The trust document and any court order requiring the bond
• Case information (case number, court, and parties), if applicable
• The required bond amount, as set by the court or trust document
• Personal financial statements and supporting documents, if applicable
• Information about the trust’s assets and value
• Information about available collateral, if required by the surety
• Attorney contact information, if an attorney is involved

After reviewing the application, the underwriter may request supporting financial or trust documents. The surety will advise if any additional underwriting requirements apply.

Special Needs Trust Bond premiums are individually underwritten — there’s no standard rate, since the bond amount, the trust’s value, and the applicant’s financial profile all vary case by case. At American Surety Bonds Agency, we work with a wide array of markets — from preferred clients to non-traditional clients and everyone in between — to help find the right rate for your Special Needs Trust Bond.

Obtaining your Special Needs Trust Bond through American Surety Bonds Agency is simple:

1. Complete the online application for your Special Needs Trust Bond.
2. Our underwriting team reviews your trust document, case information, and financial information.
3. Once approved, review your rate and finalize your bond.
4. Provide your completed bond to the court along with your other filing paperwork.

American Surety Bonds Agency works directly with attorneys on behalf of their clients to move Special Needs Trust Bonds through underwriting quickly. Send us the trust document and case information, and our team will work with you and your client to determine the bond amount, required documentation, and next steps.

American Surety Bonds Agency has been helping trustees and their attorneys meet court and trust bond requirements for decades. Whether you’re facing a tight deadline or need help understanding your trust document, our experienced team is here to make the process simple and efficient.

When you choose American Surety Bonds Agency, you’ll receive:

• Experienced surety bond professionals
• Competitive rates from leading surety companies
• Fast underwriting and responsive customer service
• A secure online application process
• Direct assistance for attorneys working on behalf of clients

Above all, we’re committed to helping you meet your court’s bond requirement quickly and correctly, with experienced guidance every step of the way.

Contact American Surety Bonds Agency toll-free at (877) 201-8976 or our Atlanta office at (404) 486-2355. Our team can answer questions about your specific trust and walk you through the application process.