• May 16, 2019

The Importance of Getting Discharged as a Fiduciary

The Importance of Getting Discharged as a Fiduciary

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As a fiduciary or guardian in Minnesota, it is a person’s responsibility to not only manage the assets of a person, it is also their responsibility to work with the courts and their attorney to close out their case when their duties are completed. There are many fiduciary roles in Minnesota:

  • Conservators: charged with managing a protected person’s assets
  • Trustee: holds the legal responsibility to manage assets according to the trust they have set up.
  • Personal Representative: responsible for compiling the assets of an estate, paying creditors and distributing the remaining assets to the estate heirs
  • Representative Payee: responsible for managing a protected person’s assets that come from the Social Security Administration, the Department of Veteran’s Affairs, etc.

No matter what type of role you have taken, it is always essential for you to close out the case if your responsibilities come to an end or if the person you are in charge of passes away or no longer needs your services.

It Matters for Surety Bonds

This is an essential step in the surety bond process, as well. In most cases, you will be required by the court to obtain a surety bond when you become a fiduciary or guardian. Once your duties end, you will need to end the bond with the court. The discharge of your bond officially tells you as the fiduciary or guardian that your responsibilities have ended. It also tells the surety company who supplied the bond that the bond is officially finished.

If you do not properly end a surety bond, there is a chance you will face increased costs.

How to End a Fiduciary Surety Bond

There are different requirements for different fiduciaries, and it’s always best to work with an attorney to ensure you properly end your role, end the surety bond and close your case with the court.

Here are the general steps that usually need to be taken by fiduciaries in Minnesota:

  • Conservators: will file a final accounting. After a hearing with the court, they will end your case and role as a conservator. You will also have to request that your bond be discharged by the court.
  • Guardian: guardians must notify the court if their protected person passes away or no longer requires their service (commonly using a copy of the death certificate). The court will end your case and your responsibilities will be over.
  • Personal Representative/Representative: people fall into the trap of thinking that they are finished when all the assets of a trust are distributed. This is not the case. Your responsibility is not finished until the court officially says you are done, whether your estate was supervised or unsupervised by the court. You will have to file with the court to be relieved of your responsibilities.
  • Representative Payee: similar to most other fiduciaries, these roles must file with the particular office (social security or veterans administration commonly) as well as the court to be officially relieved of their duties.

If you have any questions, always consult with an attorney or the court. If you have questions about how to obtain a surety bond for a fiduciary role in Minnesota, contact The Patrick J. Thomas Agency today.

 

Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.

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