Trustee's Bond

  1. Law
  2. Georgia Code
  3. Wills, Trusts, and Administration of Estates
  4. Trusts
  5. Trustees
  6. Appointment and Acceptance
  7. Trustee's Bond

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  1. A trustee shall not be required to give a bond to secure performance of the trustee's duties unless:
    1. The trust instrument requires a bond; or
    2. A bond is found by the court to be necessary to protect the interests of beneficiaries or creditors of the trust, even though the trust instrument waives the requirement of a bond.
  2. Even though a bond has been required pursuant to subsection (a) of this Code section or the trust instrument requires a bond, the court may excuse the requirement, reduce or increase the amount of a bond, release a surety, or permit the substitution of another bond with the same or different sureties.
  3. The cost of any bond shall be charged against the trust.
  4. If a bond is required, the bond shall be:
    1. Secured by an individual who is a domiciliary of this state or by a licensed commercial surety authorized to transact business in this state;
    2. Payable to the court for the benefit of interested persons as their interests may appear;
    3. Conditioned upon the faithful discharge of the trustee's duties; and
    4. If imposed by the court, in an amount and with sureties and liabilities as required by the court.
  5. Notwithstanding any other law to the contrary:
    1. A financial institution, trust company, national or state bank, savings bank, or savings and loan association described in Code Section 7-1-242 that seeks to serve as a trustee under any trust created under or governed by the laws of this state shall not be required to give bond for the faithful performance of its duties unless its combined capital, surplus, and undivided profits are less than $3 million as reflected in its last statement filed with the Comptroller of the Currency of the United States or the commissioner of banking and finance; and
    2. In every case in which the trustee of any trust is required to give bond for the faithful performance of the trustee's duties in such fiduciary capacity, the bond shall be in a value equal to double the value of the trust estate; provided, however, that the trustee may give bond in an amount equal to the value of the trust estate if the bond is secured by a licensed commercial surety authorized to transact business in this state. For purposes of this paragraph, the term "trust estate" shall exclude real property and improvements thereon held by the trustee in a fiduciary capacity; provided, however, that upon the conversion of any such real property into personalty, the trustee shall give a new bond including the value of the personalty into which the real property has been converted.
  6. The trustee and any surety shall be held and deemed joint and several obligors and may be subjected jointly and severally to liability in the same action. No prior judgment establishing the liability of the trustee shall be necessary before an action is brought against the sureties on the bond.
  7. When a judgment has been obtained against the principal and surety or sureties on the bond of a trustee, a levy may be made upon any property of any defendant in fi. fa.
  8. A court of competent jurisdiction shall be authorized to enter a judgment and to issue a writ of execution against the principal and surety on the bond of a trustee and shall be further authorized to grant judgment and execution in favor of the surety against the principal upon payment of the judgment by the surety.
  9. Failure to comply with this Code section shall not make void or voidable or otherwise affect an act or transaction of a trustee with any third party.

(Code 1981, §53-12-203, enacted by Ga. L. 2010, p. 579, § 1/SB 131.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 76 Am. Jur. 2d, Trusts, §§ 397, 564.

C.J.S.

- 90A C.J.S., Trusts, § 486.


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