Texas Next Friend Bond | AmeriPro Surety Bonds | 844-589-9732
AmeriPro Surety Bonds provides applicants with the next friend bond when required by a Texas civil court.
Below, we explain some of the features and the reasoning behind this surety bond’s requirement.
Next Friend Bond: What is it?
A Texas next friend bond is a type of fiduciary surety bond required by a civil court in a court proceeding regarding property, money, or both.
A next friend bond is required when a person who has obtained property in a judgment is either:
- Incapacitated or handicapped;
- Is a minor;
- Or, both;
And, is therefore unable or incapable of managing the property or money provided in that judgment.
The bond is required of the “next friend” or guardian ad litem to ensure that the property and any money will be managed correctly.
Texas Next Friend Bond: Statute
A next friend bond is also required by state statute, specifically Texas Property Code Prop §142.002, Management by Bonded Manager.
Texas Next Friend Bond: More on the Purpose
This fiduciary surety bond is required to ensure that the property of the minor or the person who is handicapped is not mismanaged or misappropriated.
The bond, therefore, is a financial guarantee, and is exclusively for the benefit of the minor/handicapped person.
More specifically, the bond is a financial guarantee that should the next friend misappropriate any funds or property, the loss will be fully covered by the surety bond.
Texas Next Friend Bond: The Amount
By statute, the amount of a Texas next friend bond will be:
- Double the value of the property for which the next friend acts as guardian;
- Or, at least the value of the property.
Ultimately, the court will instruct the guardian (the surety bond’s principal )as to how much surety bond is required.
Texas Next Friend Bond: Obligee
The obligee is the entity which is requiring the surety bond.
In the case of a next friend bond, the obligee is the Texas county judge where the court proceedings occur.
The bond guarantees that upon the resolution of the court case, the property will be summarily released by the next friend or guardian ad litem as required.
Texas Next Friend Bond: Purchasing One; The Premium, or How Much the Bond will cost you.
When you or any legal counsel contacts AmeriPro Surety Bonds, we strongly recommend to have any court documents or letter on attorney letterhead stating the amount of the next friend bond required.
The application, as such, will involve the following:
- You may be asked about your net worth;
- You may be asked about any investments – bonds, stocks, certificates of deposits, and the value of each;
- A credit check will be conducted.
Although there may be additional criteria, these three, particularly an applicant’s credit, will determine the amount of premium required for the next friend bond.
Texas Next Friend Bond: Annual Renewal Of Premium
An important consideration is that the Texas next friend bond renews annually, for as long as the case is active in court.
Between 60 to 90 days before any premium renewal, a notice may be sent out.
Applicants will want to financially prepare for this ongoing bond expense.
Texas Next Friend Bond: Amount
The amount an applicant will pay will largely be determined by the credit score.
- A $50,000 next friend bond, may cost $1000 annually;
- A $100,000 next friend bond may cost $2,000 annually.
Good credit applicants should expect to pay around 2% of the bond amount required.
Applicants with lower credit may be required to pay substantially more for the bond.
In almost all cases, AmeriPro Surety Bonds will be able to get a person qualified for bonding.
AmeriPro Surety Bonds
Call AmeriPro Surety Bonds for this or just about any court-related surety bond requirement.