A bond of caution (pronounced “kayshun”) is a Scottish insurance guarantee that protects an estate or an incapacitated adult’s finances against mismanagement by the person the court has appointed to handle them. An insurance company, called the cautioner, issues the bond and promises to compensate the estate or the adult if the executor or guardian causes loss through negligence or fraud.1Office of the Public Guardian (Scotland). Information for Bond of Caution Courts require it because someone is about to be given control over money that belongs to others, and the bond is the financial backstop that makes that safe.
When You Need One
Two situations trigger the requirement in almost every case: administering an estate where the deceased left no valid will, and acting as a financial guardian for an adult who cannot manage their own affairs.
Intestate Estates
When someone dies without naming an executor, the sheriff court appoints an executor-dative. Under section 20 of the Succession (Scotland) Act 1964, that executor-dative must find caution before gaining authority over the assets.2Legislation.gov.uk. Succession (Scotland) Act 1964, Section 20 The bond protects the rightful heirs if the executor distributes assets to the wrong people or otherwise mishandles the estate.
If the deceased left a valid will naming an executor (an executor-nominate), caution is not normally required, because the deceased chose that person themselves.
Guardianship and Intervention Orders
Financial guardians appointed under the Adults with Incapacity (Scotland) Act 2000 usually need caution as well. The sheriff decides at the time of the court order whether it is required and sets the amount.1Office of the Public Guardian (Scotland). Information for Bond of Caution The same applies to intervention orders, where the court authorises a one-off action over an adult’s finances.3Scottish Legal Aid Board. Caution
If the court orders caution, you cannot exercise any of your guardianship powers until the bond is in place.1Office of the Public Guardian (Scotland). Information for Bond of Caution The order sits dormant until you sort it out.
The Small Estates Exemption
If the deceased’s estate is worth £36,000 or less, it counts as a “small estate.” When the sheriff clerk’s office assists with preparing the inventory, no bond of caution is needed.4Scottish Courts and Tribunals Service. Small Estates The waiver has applied since March 2016.
It is not automatic for every estate under £36,000. The exemption depends on using the sheriff clerk’s assistance. If you instruct a solicitor to handle a small estate privately, the court may still require a bond.
What It Costs
For guardianships, the sheriff sets the bond amount when making the order, and the order may allow the Office of the Public Guardian to adjust the level of cover each year to track changes in the adult’s estate.1Office of the Public Guardian (Scotland). Information for Bond of Caution For executries, the bond corresponds to the gross value of the estate.
The premium is what you actually pay the insurer. Under the Aviva scheme administered by Marsh, a common provider for Scottish bonds of caution, annual premiums follow a fixed table based on the amount of caution required:5Office of the Public Guardian (Scotland). Bond of Caution – Table of Premiums
- Up to £10,000: £11 per year
- Up to £50,000: £55 per year
- Up to £100,000: £110 per year
- Up to £250,000: £275 per year
- Up to £500,000: £550 per year
- Up to £750,000: £825 per year
- Over £750,000: referred to the insurer individually
The scale works out to roughly £11 per £10,000 band. Guardians renew annually for the life of the appointment; executors handling a one-off estate pay a single premium covering the administration.1Office of the Public Guardian (Scotland). Information for Bond of Caution
You do not have to swallow the cost yourself. The premium can be recovered from the adult’s estate or the deceased’s estate funds.1Office of the Public Guardian (Scotland). Information for Bond of Caution In practice you may need to pay the first premium out of pocket and reimburse yourself once you have access to the funds.
Court Fees on Top of the Premium
If you are applying as an executor-dative, sheriff court fees are separate from the bond premium. As of April 2026:6Scottish Courts and Tribunals Service. Sheriff Court Fees
- Dative petition: £23
- Inventory examination, estate up to £50,000: no fee
- Inventory examination, £50,001 to £250,000: £351
- Inventory examination, over £250,000: £705
- Certificate of Confirmation: £10 each if ordered when lodging the inventory, £23 later
You will usually need one Certificate of Confirmation per financial institution holding the deceased’s assets. For an intestate estate of around £200,000 with three bank accounts, expect roughly £55 for the bond premium, £351 for the inventory examination, £23 for the dative petition, and £30 for three certificates, so about £460 before any solicitor’s fees.
How to Apply
Applying is more straightforward than the terminology suggests. For guardianship bonds through the Aviva and Marsh scheme, you can apply online, get an instant quote, buy cover, and receive the bond document immediately. A paper form posted with a cheque for the first year’s premium is the alternative.1Office of the Public Guardian (Scotland). Information for Bond of Caution Standard applications generally need no supporting documents beyond the completed form.
The application asks for the guardian’s or executor’s personal details, the court case reference, and the amount of caution the sheriff has ordered.7Office of the Public Guardian (Scotland). Bond of Caution Application Form – Adults with Incapacity (Scotland) Act 2000 For executry bonds, the insurer will also want the estate value and a family tree so it can see who the rightful heirs are under the rules of intestate succession.
Insurers do assess risk. Unresolved criminal convictions, a history of bankruptcy, or outstanding court judgments against the proposed executor or guardian can complicate or block approval. If your application is declined, you would need to find an alternative provider or ask the court to appoint someone else.
Signing and Lodging
Once issued, the bond has to be signed in line with the Requirements of Writing (Scotland) Act 1995, which means the signature should be witnessed.8Legislation.gov.uk. Requirements of Writing (Scotland) Act 1995 Where it goes next depends on the appointment:
- For guardianship, lodge the signed bond with the Office of the Public Guardian. Once satisfied, the OPG issues a certificate of appointment along with a copy of the court order. If you miss the timeframe set by the court, you have to go back to the sheriff court to ask for extra time.9Office of the Public Guardian (Scotland). Caution
- For executry, lodge the bond with the sheriff court as part of the confirmation application. The court then issues the Certificate of Confirmation, which is what you present to banks and other institutions to release the deceased’s funds.10Scottish Courts and Tribunals Service. Guide to Dealing with a Deceased’s Estate in Scotland
What the Bond Actually Does
If the guardian or executor mismanages the assets they were entrusted with, the bond is the route to compensation. The cautioner guarantees payment for losses caused by the appointee’s failure to perform their duties, whether that failure was accidental or deliberate.1Office of the Public Guardian (Scotland). Information for Bond of Caution For guardianships, the Office of the Public Guardian supervises the guardian and can flag problems through its oversight. For executries, a beneficiary who suspects wrongdoing usually has to raise the matter with the court.
The bond’s value is the cap on what will be paid out. A guardian bonded for £200,000 whose mismanagement causes a £300,000 loss produces only £200,000 of cover. That is why the court order may let the OPG adjust the caution level annually: if the adult’s estate grows, the original bond can otherwise be left behind.