Texas Trustee Bond

Trustee bonds for trusts and
successor appointments, issued fast.

Required of trustees when the trust instrument directs, when a court appoints a successor trustee and orders bond under Texas Property Code §113.058, or when a beneficiary petitions for bond. Premium typically 0.5%–1% of bond amount for well-qualified applicants.

  • Inter vivos and testamentary trusts
  • Successor and co-trustee appointments
  • Harris County and all Texas counties
What it is

The fiduciary bond Texas trustees post when required.

A Texas trustee bond is a fiduciary surety bond guaranteeing that a trustee will discharge every duty under the trust — loyalty, impartiality, prudent investment, accurate accounting, and strict compliance with the trust terms and Texas Trust Code.

The bond protects beneficiaries from losses caused by trustee misconduct: self-dealing, misappropriation, imprudent investments, or failure to account. If a valid claim is paid, the surety collects from the trustee personally. Corporate trustees (banks, trust companies) are exempt from the bond requirement under Texas Property Code §113.058(a).

The bond stays in force for the duration of the trusteeship. Premium is billed annually. The trust reimburses the premium as a proper administrative expense.

What you pay

Premium scales with trust size and trustee credit.

Trustee bonds are individually underwritten. The surety reviews the trust instrument, the court order if any, asset size, and trustee credit.

Trust / bond sizePreferred rateStandard rate
Under $100,000
Small trust
$200–$400 (min premium)$400–$600
$100,000–$1,000,000
Typical family trust
0.5% of bond0.75–1.0% of bond
$1,000,000–$5,000,000
Significant trust
0.4–0.5% of bond0.6–0.75% of bond
Over $5,000,000
Large trust (tiered)
0.3–0.4% of bond0.5–0.6% of bond

Trust reimburses premium as administrative expense. Co-trustees priced jointly.

How to get bonded

Five steps, coordinated with your trust attorney.

  1. 01

    Trust or order reviewed

    Trust instrument or court order sets the bond amount. Your attorney sends it to us.

  2. 02

    Quote & application

    Soft credit pull on the trustee. Financial questions proportional to the trust size.

  3. 03

    Surety review

    Surety reviews the trust, the order, and trustee credit. Standard cases approved in 1–2 business days.

  4. 04

    Bond issuance

    Bond issued on court-approved or trust-specified form. Delivered to your attorney for filing or for delivery to the successor trustee.

  5. 05

    Annual renewal

    Bond renews annually until the trust terminates or the trustee is removed or discharged.

Legal requirements

Texas Trust Code, trust instrument, what the bond covers.

Why Surety Bond Houston

Trustee bonds need an agent who reads the instrument.

Trust-instrument literacy

We read the trust document and match the bond form to the exact duties required — no guesswork.

Large-trust capacity

$5M+ trust bonds placed routinely through our network of A-rated sureties.

Attorney-coordinated

Trust counsel sends the documents, we quote, we issue. Minimal trustee paperwork.

FAQ

Trustee bond questions we answer every week.

How much does a Texas trustee bond cost?

Trustee bonds typically run 0.5% to 1% of the bond amount per year for well-qualified applicants. A $1,000,000 trustee bond commonly costs $5,000–$10,000 per year. Small trusts under $100,000 may qualify for a minimum premium of $200–$400. Credit-challenged trustees pay 1.5%–3% of the bond amount.

When is a trustee bond required in Texas?

When the trust instrument itself requires bond, when the court appoints a successor trustee and orders bond, when a beneficiary petitions the court for bond under Texas Property Code §113.058, or when the trust is a testamentary trust created under a will that requires bond. A bond is not required for a corporate trustee (bank or trust company) nor when the instrument waives bond.

What does the trustee bond guarantee?

The bond guarantees the trustee will faithfully discharge all duties under the trust — including duties of loyalty, impartiality, prudence in investments, proper accounting, and compliance with the trust terms. If the trustee commits misconduct that harms a beneficiary, the surety pays claims up to the bond amount, then seeks reimbursement from the trustee personally.

How does the court set the trustee bond amount?

Under Property Code §113.058, the court sets the bond at an amount adequate to protect trust beneficiaries. Typically equal to the value of trust personal property plus one year of estimated income. Real property is often excluded unless the trustee has power to sell. The court may increase or decrease the bond as trust value changes.

How fast can a trustee bond be issued?

For trustees with clean credit and a clear trust instrument or court order, same-day to next-day issuance is typical. Complex trusts with multiple co-trustees, unusual structures, or very large asset values may require 2–3 business days for underwriter review.

Can I get a trustee bond with less-than-perfect credit?

Yes. Preferred rates go to applicants with 680+ credit. Derogatory credit typically adds 1%–2% to the rate. Very weak credit may require a co-principal, partial collateral (usually 10–25%), or placement with a specialty surety.

Who pays for the trustee bond — the trustee or the trust?

The trustee posts the bond personally, but the premium is a proper charge against trust income or principal as an administrative expense. The trust instrument or applicable Texas statute authorizes reimbursement. If the trust lacks liquidity, the trustee advances the premium and is reimbursed when funds become available.

Ready when you are

Get your Texas trustee bond today.

Fast turnaround for trust instruments and court orders. Houston-based, statewide coverage.