Posted by All State Bonds on
A VA surety bond, also known as a VA Fiduciary Surety Bond or VA Custodian Bond, is a legal contract that protects the funds of a veteran or other beneficiary who is unable to manage their financial affairs.
Purpose of the VA Surety Bond:
A VA surety bond guarantees that a fiduciary will act in the best interest of the beneficiary, managing their funds and property, and making financial decisions. It also ensures compensation for any losses due to the fiduciary’s mishandling of funds.
When is a VA Bond Required:
The VA may require a surety bond if a fiduciary is managing more than $25,000 of VA funds for a beneficiary. The VA may also require a bond if it’s deemed to be in the best interest of the beneficiary
Bond Amount Needed:
The VA determines the total amount of the bond, which is usually the sum of the funds being managed plus the anticipated net income
Bond Premium:
The annual premium is typically between 2–5% of the bond amount. Factors that affect the premium include the fiduciary’s credit score, credit report, financial statements, and court documents
A surety bond company provides insurance that protects the beneficiary’s funds. As long as you are the fiduciary and continue to pay the bond premiums, the beneficiary’s funds are protected up to the face value of the bond. You are authorized to deduct the cost of a surety bond from the beneficiary’s VA funds.
To apply for a VA surety bond check www.allstatesuretybonds.com
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