Iowa Trustee Bond

To file an Iowa trustee bond, you must submit completed bond forms (including the power of attorney from your surety company) to the district court in the county where the trust is being administered. The bond must be signed by both you (the trustee) and the surety company, and must include your legal name, the surety company's name and state of incorporation, the bond amount as ordered by the court, signing and appointment dates, the type of fiduciary relationship, and the relevant district court name and county. The surety company must hold a current certificate of authority from the Iowa Commissioner of Insurance.

The Iowa District Court sets the trustee bond amount through a court order, typically based on the value of the trust's personal property plus the estimated income expected during your fiduciary period. The court can reduce the bond amount by the value of trust property safely deposited with an Iowa financial institution or real property that you cannot convey without court approval. The court has the authority to adjust, increase, reduce, or excuse the bond amount at any time during the trust administration to protect beneficiary interests.

In Iowa, you typically do NOT need a trustee bond unless (1) the trust document specifically requires it, or (2) the Iowa District Court orders it to protect beneficiaries' interests. Under Iowa Code §633A.4102, trustees are not required to post a bond by default. However, banks and trust companies are always exempt from bonding requirements, even if the trust terms mandate a bond. If you're appointed as a trustee, check the trust document and any court orders to determine if a bond is required in your specific situation.