SB 86 is a new bill that was enacted in Vermont State concerning trustees. The new bill states that a trustee is required to acquire a surety bond to guarantee the performance of their responsibilities only if the probate court requires it, or if the language of the trust required it and the court has not dispensed with the obligation. The previous law required that a trustee attain a surety bond, but stated that a corporate surety was not required if the will demonstrated that no surety bond or surety was essential. SB 86 allows the probate court to establish the amount of the surety bond, its liabilities, and whether sureties are obligatory. The probate court may adjust or cancel a bond at any moment. Additionally, the liability of the trustee or of any sureties included on the surety bond for acts or omissions of the trustee is not discharged or impacted by the trustee’s resignation.
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.