Deputies will usually be asked to take out a security bond or surety bond. These often include a ‘Bond Value’ of eye-watering figures in sometimes hundreds of thousands. If you’ve made an application to be appointed as a deputy and have received this request from the court, you may be wondering what this means.  

We like to think that most people who apply to become a deputy for a loved one (who we’ll call ‘P’) are genuinely looking out for the finances of P. However, sadly, some would use and abuse P's finances when given the chance. 

This can result in funds going missing or even being depleted altogether.

There are also cases where P has complex finances, such as investments or multiple properties, and a very well-meaning deputy simply doesn’t have the knowledge to appropriately manage these assets. Whilst this is very different from the abuse described above, it nonetheless results in a drop in the value of the assets.

To protect P's assets from such damage, the Court of Protection usually requires that deputies obtain a security bond. This is a type of insurance policy, and it means that if P's assets are mismanaged, the policy provider can replenish some or all of the lost funds. 

The Bond Value in the court’s letter will represent the figure you’re insuring for, rather than the figure you have to pay. The Bond Value is a bit like the value of the car or property that you’d insure under another insurance policy. The actual premium is significantly lower and will be confirmed when you contact your chosen provider. 

The deputy can also usually reimburse themselves for the cost of the premium from P's assets. 

All deputies are normally required to have a security bond in place. It is not specific or personal to any individuals. 

If you have any questions about your obligations as a deputy, please contact us.