Surety bonds and fiduciary bonds are similar in what they do, which leads many people to get them confused or think that they are the same thing. The fact is, however, that they are not used for the same purpose and understanding the differences between the two can help ensure you seek the right ones for the right situations. Both bonds provide important protections to the individuals involved, but in very different ways.
Take a moment to learn more about each of these important bond types so you can make the right decisions going forward.
What Are Surety Bonds?
A surety bond is a bond that guarantees a second party that a third party will perform the specific actions agreed upon in the contract. The second party is known as the owner, and the third party is typically called the principal or the contractor. One of the most common areas where this type of bond is seen is when a bail bonds company puts up the money to get someone out of jail. The bail bond company is putting up money on behalf of the person who was in jail with the understanding that the person being released from jail agrees to show up for their court date.
What are Fiduciary Bonds?
Fiduciary bonds are given to people who will act on behalf of another person that is unable to make decisions on their own. A common example of this would be when an adult child is given fiduciary responsibilities for making certain decisions on behalf of one of their parents because the parent is too sick. The bond makes it a legal requirement that the child in this example will act in the best interests of the parent, not of themselves or any other party, when making any legal decisions.
Getting Help with Your Bonds
Whenever writing up a surety or a fiduciary bond, it is important to make sure that everything is handled correctly in order to ensure it is enforceable by the courts. Having an experienced attorney there to write up the bond and make sure it is filed properly can save you a lot of hassle. If you require either of these types of bonds, please contact The Law Office of Ray Garcia, P.A. We’ll be happy to schedule a consultation with you and help get your bonds written up right away.
Law Office of Ray Garcia, P.A.
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