Which bond ensures that a fiduciary acts honestly and competently in their duties?

The correct choice is the fiduciary bond, which is specifically designed to provide a guarantee that a fiduciary—such as an executor of an estate, a trustee, or a guardian—will act honestly and competently in their role. These bonds are often required by courts to protect the assets involved from mismanagement or theft.

Fiduciary bonds serve to reassure beneficiaries and other stakeholders that the fiduciary will fulfill their responsibilities with integrity and diligence. If the fiduciary fails to meet these obligations, the bond can provide compensation to those harmed by any misconduct.

In contrast, the other bonds listed serve different purposes:

• A position schedule bond is typically used to cover public employees in specific positions against losses caused by dishonesty.

• An injunction bond is a type of legal bond required to secure a party's claim when seeking a court order to maintain the status quo pending a trial.

• A garnishment bond is used in situations related to legal claims against a debtor's assets.

Thus, the fiduciary bond is uniquely suited to ensure that fiduciaries conduct themselves honestly and competently in their professional duties.