In a will that nominates Elizabeth as trustee but is silent as to whether a bond is required, which statement is true?

• A. Elizabeth will not need to file any bond.
• B. Elizabeth will need to file a Trustee bond, only if she's the named executor.
• C. Elizabeth will need to file a bond as Trustee.
• D. Elizabeth will need to file a Trustee bond, only if she's a beneficiary.

Answer: (D)

The key idea here is when a trustee needs to post a bond. A trustee bond is a safeguard designed to protect beneficiaries from possible mismanagement by the person entrusted with administering the trust. When a will nominates someone as trustee but does not specify whether a bond is required, the deciding factor is whether the trustee has a personal interest in the estate—that is, whether she is a beneficiary.

If Elizabeth is a beneficiary, there is a direct stake that could be affected if she mishandles trust assets, so the court will typically require a trustee bond to protect the other beneficiaries. If she is not a beneficiary, there isn’t that same personal stake in the trust assets, and the court may not require a bond in the absence of other circumstances.

That’s why the statement asserting a trustee bond is needed only if Elizabeth is a beneficiary aligns with how bond requirements are generally determined: the bond serves to protect those with an interest in the trust, which depends on Elizabeth’s status as a beneficiary.