After you’ve been entrusted with the responsibility of managing the assets of a family member or friend (called the “ward), you may be feeling overwhelmed. Awareness of your new duties, how to perform them, and with whom can you consult will help ease you into this new position.

As guardian of a ward’s money and property, or their “estate” you have control over their assets and a strict fiduciary duty to protect the ward as well as their interests. This is a legal responsibility to act in their favor—failure to do so could lead to removal as guardian, personal liability, or in extreme cases, legal prosecution.

Review legal documents and guides

Be sure to carefully read the court order and be sure to familiarize yourself with all the duties of a guardian. If you need assistance in understanding the terms stipulated in the order, don’t hesitate to consult with a lawyer.

For additional help, the Consumer Financial Protection Board (CFPB) has provided a guide entitled, “Managing Someone Else’s Money: Help for Court-Appointed Guardians of Property and Conservators” which thoroughly explains in great detail what guardians should or shouldn't do along with a list of resources and further aid.

Be proactive and thorough

As a fiduciary, you will be held to very high standards and are expected to be honest and act in good faith at all times. You must make decisions for the ward’s best interest, not yours.

One of the most important tasks is keeping your ward’s property and finances safe. In order to best manage the estate, it is important to take an exact inventory of everything, and to make a budget for spending on the ward’s behalf. Records and receipts for all activities should be meticulously documented.

Responsibilities include making purchases, paying bills, taxes, etc.— but keep in mind, everything you do with your ward’s assets needs to be made with the court’s prior approval.

Act collaboratively and conscientiously

If conditions permit, consult the ward and incorporate their desires into your actions. If this is not possible, look into past decisions and statements and build from there. Consider working with other trusted individuals already active in your ward’s life, but be careful not to let anyone pressure you who doesn’t have your ward’s best interests at heart. When in doubt, check with the judge before taking action.

As a guardian, you have broad powers in managing your ward’s assets. With great power, comes great responsibility. In order not to leave anything to chance, contact us to learn more about the rules and guidelines of your guardianship. Koler Law Office can equip you with the necessary knowledge to navigate this important role.