It is a no-brainer that in the event of your departure from this lifetime, you will want your family to be protected and well taken care of. Having a solid plan in place that confirms your family’s safety and well-being is commonplace and habitually takes the form of a will or a trust. But is there a difference between the two plans? The answer is a resounding yes!
A trust is a fiduciary relationship by which a trustor bestows the trustee the right to hold title to assets or property for the beneficiary. A trust is one crucial component of an inclusive estate plan, which comprises other vital documents like a power of attorney, a healthcare power of attorney, and a will. Trusts generally carry a larger price tag and entail professional assistance. Congruently, when creating your trust, it is important to have a Trustee Surety Bond. This bond will make sure the person who has taken over your property and assets, known as the trustee, will act in accordance with your trust. If they fail to do so, beneficiaries can legally make a claim against them.
Conversely, wills are a little bit easier to set up than a trust but require your assets to be passed through probate so your assets are distributed in the manner you have requested. You can also encompass things such as naming a guardian for your children. When crafting your will, there are two steps you must complete. First, you must create a trust agreement. The grantor establishes this legal document that defines who the trustee is, who the grantor is, who the beneficiaries of the estate are, and how the trust assets will be properly dispersed and administered. Second, you must fund the trust. To do this, the grantor must transfer assets to said trust. If the trust is not funded, the agreement is worthless.
If you are creating a trust and need a trustee surety bond, we have an easy way for you to obtain yours online! Colonial Surety Company offers a direct and digital way for you to secure a trustee bond online from your desktop, tablet, or mobile device. We call them I-bonds®. These bonds are available for instant quote, purchase, print, or e-file. To get your bond, simply get a quote online, fill out the requested information, type in your payment method, and your bond is ready! Click here to secure your bond.