Once a guardianship is established, the court has continuing oversight over the affairs of the Ward until the guardianship is terminated. The following is a general discussion of the duties and responsibilities of a legal guardian.
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Initial Duties
A Guardian is required to designate a standby Guardian. If a Guardian has medical decision making authority, the standby Guardian may provide consent to necessary medical procedures if Guardian cannot be located within 4 hours after the need arises. Upon the death or incapacity of the Guardian, the standby Guardian assumes the duties of the Guardian, but is required to petition the court within 30 days.
A Guardian of the Estate must prepare and file an Inventory of the Ward’s assets with the court, followed by regular Accountings outlining income received and expenditures made. Accountings are generally done annually, but in low-asset cases it can be extended to every 3 years. A Guardian of a Person must submit a Personal Care Plan, and update it regularly, explaining how the personal needs of the Ward are being met.
Legal fees for preparing care plans, accountings, and other court pleadings may be paid from the assets of the Ward, subject to court approval.
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Protecting Assets
Generally, to protect a Ward’s bank accounts and other liquid assets, the Guardian must obtain a bond equal to the amount of liquid assets to protect assets if a loss occurs due to the Guardian’s negligence or malfeasance. The amount of the bond can be reduced by placing assets in a "blocked" account which require a court order to make withdrawals. Not all financial institutions offer this service.
Most bond companies require that liquid assets not needed to cover expenses for the 12-month period between accountings be placed in blocked accounts. An order permitting the Guardian to withdraw funds from a blocked account can often be obtained at the time the annual Accounting is presented for court approval. Extraordinary financial transactions, such as selling the Ward’s house, initiating or participating in litigation on the Ward’s behalf, or making gifts of the Ward’s property, require special court permission.
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Other Duties
A Guardian is required to report to the court, within 30 days, any substantial change in the incapacitated person’s condition or change of residence.
Family members, friends, and others with a legitimate interest in the Ward’s affairs have the right to request advance notice of the Guardian’s application for court approval of any action in the Guardianship, such as approval of any financial accounting, care plans, or extraordinary financial transactions. The order appointing Guardian will require the Guardian to notify certain interested parties of this right to request notice.
The Guardian submits income tax returns on behalf of the Ward, and therefore must notify the IRS of their appointment. Similarly, state law requires the Guardian to notify the Washington State Department of Revenue of the Guardian’s appointment; failure to do so could render the Guardian personally liable for any state taxes owed by the Ward.
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Terminating a Guardianship
Occasionally a Guardianship is terminated because the Ward regains the capacity to manage his or her own affairs (for example, if a mental illness has been brought under control by medication); a Guardianship based solely on minority terminates when the minor turns 18. Otherwise, a Guardianship usually lasts for the remainder of the Ward’s life.
Upon termination, a Guardian of the Estate will generally file a final accounting with the court and turn any remaining assets over to the person(s) entitled to receive them (e.g., to the Ward, if he or she regained capacity or attained the age of majority). In cases where the Ward dies, the Guardian usually delivers any remaining assets to the Personal Representative of the deceased Ward’s estate; in some cases – such as where the Ward died without a Will – the Guardian can obtain court approval to administer the estate and distribute any remaining assets to the legal heirs of the Ward.
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