A fiduciary is a person appointed by the court to handle the affairs of persons who are not able to do so themselves. The fiduciary is often called a Guardian or Conservator if he handles the affairs of a minor or an incapacitated person. An Administrator is a fiduciary who handles the affairs of someone who has died; he or she is known as an Executor if specifically named in the will.
Fiduciaries are often required by statute, courts, or wills to be bonded. Statutes prescribe how fiduciaries should handle others’ affairs. However, the surety company often assists in keeping the fiduciary within the law.
Assistance of a surety is available to the principals or their attorneys. Supervision by the surety helps prevent problems and secure the assets entrusted to the fiduciary. Through careful underwriting practices, a surety also attempts to minimize losses.
In addition to the loss prevention services per- formed by a surety, the bond creates protection. If there should be a loss, the surety pays heirs, wards, creditors, and beneficiaries.