Since a minor does not have the legal right to take control and manage the property he or she inherits, the courts appoint a guardian or conservator to do so. The choice of a guardian is made with the needs and requirements of the ward (the minor) in mind. The courts examine the financial condition, health, judgment, morals and character of the person who requires guardianship.

Once appointed, a guardian is expected to fulfill various duties and responsibilities to meet the needs of his or her minor ward.

• A guardian must take inventory of all the assets of the ward, determine their value and file a list of their estimated value with the court.
• A guardian’s position is based on trust and they are legally obligated to protect the interests of the ward in the same manner they would protect their own.
• A guardian has the authority to make decisions regarding the management of all assets owned by the minor.
• A guardian cannot invest the ward’s money in speculative ventures or neglect any duties related to the maintenance of land, crops or buildings that are part of the ward’s estate.
• A guardian has to ensure the timely payment of all bills, taxes and other payments relative to the management of the minor’s estate.
• A guardian cannot allow someone else to maintain or manage the business of the minor without direct supervision on the part of the guardian.
• A guardian has the legal right to hold or sell the property of the minor but not use the proceeds for the guardian’s personal benefit.
• A guardian is prohibited from making gifts from the ward’s estate and is required to keep his or her own money and the ward’s money separate.
• The guardian needs to pay for the health, education and other maintenance expenses of the minor.
• The guardian can make a decision regarding where the minor will live but must receive court approval.
• The guardian may require the court’s permission for carrying out certain duties, depending on individual state laws and guidelines.
• The guardian must present to the court on an annual basis details of assets of the minor, along with additions or subtractions from those assets.

Once the minor reaches adulthood, the guardian must make a final accounting of the minor’s assets and seek termination of guardianship.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Tags: Guardianship

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