Georgia State presented a new law regarding the Trust Code. The new law is named SB 131 and modifies the Trust Code within the state. SB 131 states that a trustee is required to attain a surety bond only when the court finds it essential to defend the interests of the trust, or if the trust instrument required one. The new law also authorizes the court to release the requirement, decrease or boost the quantity of a surety bond, release a surety, or authorize the replacement of another bond with a matching or separate surety company. Regulated financial service institutions eligible to do trust business within the State are not asked to acquire a surety bond. The new law authorizes the surety bond to be attained by an individual residing in the State or by a state authorized commercial surety. SB 131 also states that the surety bond must be in a quantity equivalent to twice the value of the estate, but allows a commercially acquired surety bond to be in a quantity equal to the value of the trust estate.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.