If you have a loved one showing signs of cognitive decline or other physical issues making it hard for them to handle their own finances, it’s natural to have questions about your legal options.
Courts may appoint guardians when a person is unable to manage their own finances. Financial conservatorship is often recommended when a person needs assistance handling money. Financial guardianship may have different names depending on your jurisdiction, including guardianship of the estate or conservatorship. When someone needs assistance making financial and personal decisions, courts will also order guardianship of the individual’s estate and their person. A guardian appointed in this role has an important fiduciary duty and responsibility to make financial and personal decisions for the protected person.
Financial guardianship can give a broad level of discretion to the appointed party, allowing them to oversee the person’s total finances and access funds in order to pay bills. Typically, a formal guardianship arrangement requires the guardian to get court approval before making any financial actions on the ward’s behalf. This is put in place as a means of financial protection. You may create a financial power of attorney to appoint an individual in the decision-making role of handling your finances if something happens to you.
Given that 1 in 4 US adults may end up disabled at some point in their life, exercising these decision-making roles now by naming someone as your financial power of attorney agent can make a big difference in the outcome of your case.
Talk to a Pasadena estate planning law firm today to get more assistance.