7. Security bonds
Often the deputy's first duty is to arrange a security bond with an insurer. The court requires that all deputies for property and financial affairs do this. This security bond is a type of insurance policy designed to financially protect the person with dementia in the unlikely event that the deputy were to mismanage their finances. The security bond is determined by the amount of funds that the deputy will have control of, including any non-cash assets such as property.
Guidance on arranging a security bond is usually sent out once the court has made the order, and they will require you to set up the bond before it sends the order to you. You may pay the bond from money you hold for the person, or pay from your own money and be reimbursed when you have access to the bank account. It is important to note that you will have to pay a yearly fee or premium for the bond, which can be paid from the money of the person with dementia.This obligation will continue for as long as a deputy is in place.