Among other things, legal guardians are often given extraordinary power over their ward’s finances, in order to help them do things like ensure their bills are paid. However, this power comes with significant legal responsibilities, which can lead to serious trouble if guardians fail to uphold their duties. But what financial obligations do legal guardians have, and what happens if they violate those obligations?
What Can Legal Guardians Do With Their Ward’s Finances?
When a guardian is placed in charge of a ward, they are often granted the authority to use and manage their ward’s finances. This is meant to ensure they are able to pay any bills, and also to ensure any investments they have are properly managed. However, this comes with the risk that a guardian may abuse their authority to pay for personal expenses with their ward’s money.
What Are the Financial Responsibilities of Guardians?
In order to avoid this type of scenario, certain legal responsibilities are imposed on legal guardians to prevent financial abuse. First and foremost, they are given what is known as a fiduciary duty, meaning they are supposed to place their ward’s interests above their own when it comes to any financial decision. Second, guardians must keep track of all expenses, no matter how small, and can be held accountable for any discrepancies in the ward’s accounts.
What Happens if They Violate Their Duties?
If a guardian violates their duties by mismanaging their finances, or by failing to keep appropriate track of expenses, they can face significant legal penalties. This may result in anything from court fines and penalties, to potentially being removed as the ward’s legal guardian. In more extreme circumstances, it is even possible that a negligent or abusive guardian may be criminally charged.
What Should You Do?
If you are a legal guardian or you are looking to file for guardianship over someone else, you should speak to a lawyer with experience handling guardianship law. They can help you through the process, and ensure you remain compliant with all laws related to being a guardian. The sooner you get in contact, the sooner they can get to work on your case.
The estate law attorneys at David J. Lorber & Associates, PLLC will work with you to create an estate plan that suits your needs, and help you to protect yourself and your loved ones. For comprehensive estate and elder law services in New York, call David J. Lorber & Associates, PLLC at (631) 750-0900 or contact us online to schedule a free consultation at our Setauket office.
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