The cost of Estate administration bonds and guardianship bonds are slightly differently.
The cost of an estate administration bond is based on a rate multiplied by the value of the bond. This rate varies based on the strength of the application, the size of the bond and complexity of the situation, but the rate typically ranges from 0.3% to 1%. That means if you have a $1,000,000 estate and the rate is 0.75% the bond will cost $7500. This is a one-time fee and it’s paid upon issuance of the bond.
Guardianship bonds however are billed by most bond companies as an annual fee based on an annual rate. The bond will be billed each year it is required. As with estate administration bonds, the rate varies based on the situation, the size of the bond and the strength of the application. Compared to estate administration bonds, this rate is much lower and ranges from 0.25% to 0.5% per year. At FCA we always request a bond company quotes an option for a one-time fee in addition to annual fees. This one-time fee is typically in the 1.5% to 2.5% range but on guardianships that can last a decade or longer there are considerable savings to be had.