Guardianship of Property – What to Do if Appointed

As a result of his age, your grandfather Martin can no longer make his own decisions. A court appoints you to be Martin’s guardian of property, to help Martin manage his money. You become Martin’s “fiduciary.” The law now requires you to act to a high standard of good faith and honesty.

There’s a lot of work involved with a guardianship, and the high standard could be daunting. To assist you, the Consumer Financial Protection Board (CFPB) has issued a guide: “Managing Someone Else’s Money: Help for Court-Appointed Guardians of Property and Conservators.”

Guardian Duties Outlined in the CFPB Guide

The guide details property-guardianship duties. These include:

• Keeping careful records.
• Keeping Martin’s money separate from yours.
• Spending Martin’s money for Martin’s benefit only.
• Paying Martin’s bills and taxes.
• Overseeing bank accounts and making investments.
• Obtaining insurance and fulfilling other duties contained in the court order.

The court order signed by the judge may provide a list of your duties, or, if not, you can follow the list provided in the CFPB guide.

Important First Steps for Guardians

The guide recommends that as a first step, you must:

• Carefully read the court order.
• Speak to a lawyer about it if you can, and especially if your state law requires you to.
• Be aware you may be required to buy a bond. If you do not have good credit and cannot get a bond, inform the judge before your appointment.

Additional Guardian Responsibilities

• Creating an inventory of Martin’s property.
• Keeping Martin’s goods and home safe.
• Creating a budget for spending on Martin’s behalf and documenting that spending.
• Signing checks on Martin’s behalf.
• Creating accounting reports to submit to the court as often as required.

Additional Advice for Guardians

• Consult Martin as much as his condition permits.
• Resist pressure from others who may not have Martin’s best interests at heart.
• If in doubt, consult the judge before acting.
• You may need to consult and work together with other people Martin has designated for health care and personal matters.

A guardian appointment is a big responsibility, requiring conscientious and attentive care. Be reassured that help is available from the court and from the CFPB guide.