Texas Credit Union Fidelity Bond Requirements (2026)
Texas credit unions answer to two fidelity bond rules, not one. The NCUA asset table under 12 CFR 713.5, plus what 7 TAC 91.510 adds if you're state-chartered.
Texas Trustee Bond
Trustee bonds for trusts and
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 size | Preferred rate | Standard rate |
|---|---|---|
| Under $100,000 Small trust | $200–$400 (min premium) | $400–$600 |
| $100,000–$1,000,000 Typical family trust | 0.5% of bond | 0.75–1.0% of bond |
| $1,000,000–$5,000,000 Significant trust | 0.4–0.5% of bond | 0.6–0.75% of bond |
| Over $5,000,000 Large trust (tiered) | 0.3–0.4% of bond | 0.5–0.6% of bond |
Trust reimburses premium as administrative expense. Co-trustees priced jointly.
How to get bonded
Five steps, coordinated with your trust attorney.
- 01
Trust or order reviewed
Trust instrument or court order sets the bond amount. Your attorney sends it to us.
- 02
Quote & application
Soft credit pull on the trustee. Financial questions proportional to the trust size.
- 03
Surety review
Surety reviews the trust, the order, and trustee credit. Standard cases approved in 1–2 business days.
- 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.
- 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.
Statute
Texas Property Code §113.058 governs trustee bonds. Corporate trustees are exempt. Non-corporate trustees post bond when the trust instrument requires, when the court orders, or when a beneficiary petitions and the court grants.
Issuing authority
The Texas district court or statutory probate court with jurisdiction over the trust. Harris County: district courts or probate courts depending on type.
Bond amount
Set to adequately protect beneficiaries — typically personal property value plus one year of estimated income. The court or instrument may specify a fixed amount.
Term
Continuous for the life of the trusteeship. Premium billed annually.
Who can claim
Any beneficiary, co-trustee, or successor trustee harmed by the trustee's breach of fiduciary duty.
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.
Related bonds
Other fiduciary bonds we write.
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.