Tennessee Guardianship Bond Requirement for a Minor Child

When a Bond Is Required

Under T.C.A. § 34-1-105, a guardian appointed to manage a minor child's property must generally post a bond. The bond amount is set at the fair market value of the child's personal property plus one year's anticipated income from all property under the guardian's control.

This requirement exists to protect the child's assets. If a guardian mismanages funds — spending an inheritance, mishandling a personal injury settlement, or failing to account for income — the bond provides a financial recovery mechanism.

Person-Only Guardianship vs. Property Guardianship

Most grandparents and relatives seeking guardianship of a grandchild are filing for guardianship of the person only. They need legal authority to make decisions about school, medical care, and daily life — not to manage the child's financial estate.

Person-only guardianships filed in Juvenile Court typically do not require a bond because there is no property to safeguard. The bond question arises when the child has assets: an inheritance, a life insurance payout from a deceased parent, a personal injury settlement, or a trust fund.

If the child has both personal care needs and property, you may need a combined person-and-property guardianship filed in a court exercising probate jurisdiction or another court of record, which triggers the bond requirement.

How the Bond Works

A guardianship bond is not a payment to the court. It functions like an insurance policy. You purchase the bond from a corporate surety company, and the surety guarantees the court that the guardian will handle the child's property responsibly.

The guardian pays an annual premium to maintain the bond — typically 1% to 3% of the bond amount per year. On a $50,000 bond, that means roughly $500 to $1,500 annually. The premium is a recurring cost for the duration of the guardianship.

Some courts accept pledged property instead of a corporate surety bond, subject to statutory exceptions. Ask the clerk what forms of security the judge in your division accepts.

When the Court May Waive the Bond

Tennessee law lets the court excuse a bond when it finds that requiring one would be unjust or inappropriate and a statutory condition applies. One condition is that the child's non-real-estate property is worth no more than $10,000 and the court finds that saving the bond cost outweighs the risk.

If you are filing for person-only guardianship and the child has no significant assets, make sure your petition specifies guardianship of the person only. This avoids the bond issue entirely.

Annual Accounting Comes with the Bond

If you are appointed guardian of a child's property, the bond is only one piece of the ongoing obligation. You must also file an initial inventory of the child's assets within 60 days and submit annual accountings to the probate court clerk showing every dollar received and spent, backed by bank statements and receipts. These reporting duties continue until the estate guardianship ends; the court may continue it beyond age 18, but not past the person's 25th birthday.

Next Steps

If you are unsure whether the child you are raising has assets that would require a property guardianship and bond, consult with legal aid or a family law attorney. The Tennessee Guardianship and Custody Court Process Guide explains the distinction between person-only and property guardianships and the filing requirements for each, so you can prepare before your first visit to the clerk's office.

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