Cash vs. Corporate Bonds in Texas Guardianships

The appointment process for Texas guardianships can be long and arduous, with bond requirements often imposed right before Letters of Guardianship are issued.

In Texas guardianship cases, a cash bond is posted by the guardian to the court in a nominal amount, while a corporate surety bond is backed by a licensed surety company. Both types of bonds guarantee the guardian’s compliance with court orders and fiduciary duties.

Corporate surety bonds are often reserved for Guardians of the Estate alone, but some counties may impose a corporate bond for Guardians of the Person rather than the typical cash bond.

We’ve prepared this article to ensure all Texas guardians are prepared when they face a bond requirement during their appointment, outlining each type of bond and how to obtain a corporate surety bond.

Guardian of the Person vs. Guardian of the Estate: Difference in Bonds

In Texas guardianship cases, a surety bond is a court-required financial guarantee that a guardian will comply with the Texas Estates Code and faithfully perform their duties. The Texas Estates Code mandates that every guardian must file an oath and bond before they receive Letters, unless found exempt by the court.

Guardian of the Person: Appointed to make personal and medical decisions for the ward. A corporate surety bond may be required, but it is often waived if there is no control over assets. Courts typically set a nominal cash bond requirement, around $100 or $1,000, to be posted by the guardian.

Guardian of the Estate: Appointed to manage the ward’s property and finances. A bond backed by a corporate surety is almost always required, with the amount typically tied to the value of personal property and anticipated income. The guardian must pay annual bond premiums to the surety company each year as part of their fiduciary duties.

The key distinction is the type of backing on the bond, whether it be from the guardian’s own cash or from a corporate insurance company. Per Texas Estates Code Sec. 1105.102, the court will base its decision on the guardian’s financial condition, past compliance with the court, and relationship to the ward and community

What Does a Bond Protect in Guardian of the Person?

In Texas guardianship practice, courts may choose to require a corporate surety bond in Guardianship of the Person cases, even when no assets are under the guardian’s control. 

Although the guardian does not control money or property, the bond serves as a financial safety net if the guardian violates court orders, misuses authority, or breaches fiduciary duties. The bond guarantees that court-ordered damages resulting from such breaches can be recovered, up to the bond amount. 

However, a corporate surety bond does not guarantee quality care, prevent wrongdoing, replace court supervision, or shield the guardian from personal liability. It strictly ensures financial accountability for the guardian failing to meet their court-ordered responsibilities.

Where Do I Get a Guardianship Bond?

Facing a surety bond requirement from the court? Jet can help guardians and their attorneys obtain fast, low-cost bond approvals on the same day. 

Our team can walk you through the bonding process from start to finish, explaining each step while providing responsive, knowledgeable service. Jet Surety offers competitive rates and fast approvals for Texas guardians statewide, helping avoid delays when court deadlines matter most.

Have any questions? Give us a call at (855) 470-0877 to speak to one of our probate bond experts.

The information provided on this blog is for general informational purposes only. It is not intended to be legal advice and should not be construed as such. Consult with a qualified legal professional if you are seeking assistance with a probate or estate matter.