A Guardian may bear personal 
liability for his actions or inactions. There are many pitfalls to avoid while managing the ward’s assets.
Insurance– Guardian must keep insurance on the ward’s home , even if the ward no longer lives there. The homeowner’s insurance company must be informed that the home is vacant. Guardian should inventory all valuables in the home such as jewelry, musical instruments, paintings, etc. and ascertain that these are all properly insured.
Winterize the house, even if the heat is supposedly being kept on. Turn off the master water valve and open the faucets to let the water drain.
Guardian must keep insurance on any automobiles, even if the vehicle is not being driven.
Health Aides -If the ward is still at home and cared for by health aides, the insurance policy must have coverage for domestic servants. If the aides are not covered for workers’ compensation, the Guardian may be liable for the aide’s medical expenses if injured on the job.
If the ward moves to a facility, the private health aide isn’t covered by the homeowner’s insurance policy. Therefore, in this scenario, a private aide must be engaged by a health care agency to be properly insured.
Income Taxes– In addition to handling the preparation of all current tax returns, the Guardian must ascertain if the ward has any unfiled tax returns for prior years or any outstanding tax obligations. The IRS and the state tax authorities should be contacted to verify and resolve these issues.
Mortgages– Review the terms of all mortgages. Determine if mortgage should be refinanced. If the ward moves to a facility, a reverse mortgage may have to be paid-off within a few months.
Real Estate– If the ward moves to a facility or to a family member’s home, his prior residence should be sold or rented. Guardian should evaluate the options given many factors: the ward’s cash flow needs, expenses to maintain, potential appreciation and the real estate market.
Investing Liquid Assets– Guardian should review all bank and brokerage accounts and make sure that all assets are invested properly. A qualified investment advisor should be engaged to invest according to the ward’s needs and according to the Prudent Investment Act.
Accounting- Guardian must file an annual accounting with the Court. Good records and a journal of all cash receipts and disbursements must be maintained in order to prepare an accounting.
A Power of Attorney has the right to handle many of these functions, however, the Guardian is court-appointed and has the obligation to perform all these jobs.
Navigating through the guardianship maze is overwhelming. We can assist you with this difficult process. Working with Urbach & Avraham, CPAs is unique because we know what you’re going through. Several of our firm members have taken care of their elderly parents or special needs relatives. Please contact us to see how our CPA firm can assist you.
of responsibilities to handle. If the ward’s living situation isn’t safe or suitable, the Guardian should pursue moving the individual to a home or facility which provides supervision, medical care and socialization.