A fiduciary bond is a legal instrument that essentially serves as insurance to protect beneficiaries, heirs, and creditors when a fiduciary fails to perform honestly or competently. A court may require a fiduciary bond for any person or party that has fiduciary duty or responsibility to another. In general, a fiduciary is someone who owes a duty of loyalty to protect the interest of another. A fiduciary may be a trustee, executor, personal representative, administrator, guardian, financial adviser, or other person exercising control over another person's assets and property.