Being named as a fiduciary, whether as an executor, trustee, guardian, or conservator, is an important responsibility. But what happens if you live in one state, and the estate, trust, or protected person you’re managing is in another?
This situation is more common than you might think. Families often live across state lines, and when a loved one passes away or becomes unable to manage their affairs, an out-of-state relative is frequently chosen to serve as the fiduciary.
You can serve, but you’ll likely need to post a court-approved bond that meets the laws of the state where the estate is being administered.
What Is an Out-of-State Fiduciary?
An out-of-state fiduciary is someone appointed by a court in a different state to manage the affairs of another person or estate.
This includes:
- Executors or Administrators: Appointed to handle a decedent’s estate during probate.
- Guardians or Conservators: Responsible for the personal and/or financial affairs of someone unable to manage their own.
- Trustees: Oversee and distribute assets according to a trust agreement.
If you live in one state but are appointed in another—for example, you live in Wisconsin but are named executor of a parent’s estate in Minnesota—you are considered an out-of-state fiduciary.
Why Out-of-State Fiduciaries Are Required to Be Bonded
Courts use fiduciary bonds to protect the estate or person under management from potential financial harm. The bond acts as a financial guarantee that the fiduciary will perform their duties faithfully and in compliance with the law.
When the fiduciary lives outside the state, courts could tighten bonding requirements to provide extra protection and assurance. This is because the court has less oversight over an individual who doesn’t live locally, and it may be more difficult to compel their appearance or actions if problems arise.
For this reason, many states require out-of-state fiduciaries to post a bond even if local fiduciaries might be exempt.
If you’re an out-of-state executor, administrator, trustee, or conservator, expect to need a bond. That bond must comply with the laws of the state where the estate or protected person resides, not your home state.
The Types of Bonds You May Need
Depending on your fiduciary role, the court may require one or more of the following:
Executor or Administrator Bond (Probate Bond): Ensures that an executor or administrator properly collects, manages, and distributes estate assets according to the will and court orders.
Guardianship Bond: Protects a minor or incapacitated person’s personal and financial interests when a guardian is appointed to make decisions for them.
Conservatorship Bond: Covers the financial management of an adult’s estate or assets by a conservator.
Trustee Bond: Provides protection for trust beneficiaries, ensuring that the trustee properly handles and distributes trust assets.
Personal Representative Bond: A general term that covers executors and administrators responsible for estate management during probate.
Each of these bonds functions as a financial safety net. If the fiduciary mishandles funds or fails to perform their duties, the bond can be used to compensate the estate or beneficiaries for losses.
How to Get a Bond as an Out-of-State Fiduciary
While the requirements may sound complex, the process of obtaining a fiduciary bond is straightforward.
You’ll typically need to:
- Confirm bond requirements with the court. Contact the court where the estate or conservatorship is filed. They will specify:
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- Whether a bond is required
- The required bond amount
- Any specific wording or conditions the bond must include
2. Complete a bond application, which will ask for basic information such as:
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- Your name and address
- Your relationship to the estate or ward
- The total value of assets being managed
- A copy of the court order or appointment paperwork
3. The surety company reviews your application, which may include a credit check and background verification. For most fiduciary bonds, approval can be fairly quick.
4. Once approved, the agency issues the bond and provides the necessary documentation to file with the court. This officially allows you to assume your fiduciary duties.
Special Considerations for Out-of-State Fiduciaries
Because you live outside the state where the estate is being administered, there are a few extra details to be aware of:
Jurisdiction and Compliance
Your bond and your role are governed by the laws of the state where the estate or conservatorship exists—, not where you live. Make sure your bond meets that state’s statutes and local court rules.
Resident Agent Requirement
Some states require an out-of-state fiduciary to designate a resident agent (often an attorney or local representative) who can receive legal notices on their behalf. Your bond agency can often coordinate this as part of the bonding process.
Bond Amount Adjustments
If the estate grows or changes in value, the court may require the bond amount to be increased. Always notify your agency if there are significant financial changes.
Renewal Obligations
Many fiduciary bonds must be renewed annually. Missing a renewal could cause your bond to lapse.
Multiple Jurisdictions
If you’re administering assets in multiple states, you may need separate bonds for each jurisdiction. Each probate court will have its own bonding requirements.
Work With The Patrick J. Thomas Agency
We specialize in fiduciary and court bonds. Whether you’re serving in your home state or across the country, we make sure your bond meets the exact requirements of the appointing court. If you’ve been appointed as an executor, trustee, or conservator for someone who lives in another state, our can help you secure the court-approved bond you need.