By Beth A. McDaniel
On January 1, 2022, the adult guardianship laws changed in our state, bringing with it new document and notice requirements. An adult guardianship occurs when an adult needs assistance with housing and medical decisions and there is no suitable less restrictive alternative like a Durable Power of Attorney for Healthcare Decisions. An adult conservatorship occurs when an adult needs assistance with finances and there is no suitable less restrictive alternative like a Durable Power of Attorney.
It is common for parents of a developmentally disabled child to petition for guardianship/conservatorship when the child turns 18. Other situations in which an adult guardianship/conservatorship may be required include:
- When an adult becomes incapacitated prior to executing a Durable Power of Attorney.
- When the adult has a Durable Power of Attorney, but the agent refuses to act, acts inappropriately, or dies and there is no alternate agent named.
- Where there are ‘dueling Durable Powers of Attorney’ in which, for example, a parent has named different children who do not get along or have different ideas regarding what is in the parent’s best interest.
- To protect an individual from reoccurring financial exploitation or the individual’s lack of judgment due to neurological impairment like dementia
Due to our needing to keep our over 90 current guardian and conservator clients up to date with the requirements of the new guardianship laws, our office is currently not taking new guardianship/conservatorship cases. If you or someone you know is contemplating guardianship or conservatorship, please contact our office for an attorney referral list.
It is important to know that an adult guardianship/conservatorship matter is subject to ongoing court review, typically annual or triennial, for the duration of the incapacity, the individual’s lifetime, or the individual’s execution of a Durable Power of Attorney (if possible), whichever is the shortest. If the individual’s only source of income is needs-based Social Security Income (SSI), we ask the Court to waive the requirement of providing to the court accountings for this income and to instead direct the conservator to attach representative payee reports to the conservator’s reports which coincide with the same reporting period.
Also, whenever possible, we ask the Court for a triennial review versus annual review to save the legal fees associated with annual reporting. The downside to a threeyear review, however, is they require our guardianship/conservatorship clients to be disciplined with keeping good records. To help our clients with the task, we will implement annual check-in calls with our conservatorship clients to review that year’s financial statements and get questions answered regarding any unusual deposits or disbursements.
Here are additional tips to save legal fees in a guardianship/conservatorship:
- Notify the attorney immediately if you or the individual subject to a guardianship/conservatorship relocates as a Notice of Change of Circumstances needs to be filed within 30 days of such a move.
- Likewise, notify the attorney immediately if the individual subject to a guardianship/conservatorship dies as, per state law, a guardianship/conservatorship final report needs to be filed with the court and submitted for approval within 90 days of the death.
- If the individual receives SSI, arrange for those funds to be deposited to a separate representative payee account. Any other income received should be deposited to a separate account from the SSI.
- Save in a file each financial statement as soon as it becomes available or is received; immediately review the statement and make note of any unusual expenditures or deposits.
- Avoid electronic transfers between the individual subject to a conservatorship’s account and your own account. Without fail, the purposes of transfers become forgotten and impossible to account for. An exception would be a monthly transfer from the individual’s account to the conservator’s account for rent.
- Provide information needed to prepare accountings and reports when requested by the law office, as delays often require requesting orders to give additional time to file the report. Presenting such an order incurs more fees and costs.
- Guardianship and Conservatorship clients should do their best to respond to e-mails and calls in a timely manner; otherwise, more legal fees will be incurred when follow-up emails and calls are required.
- If you do not live with the individual and you are their guardian, know that the Court requires you to keep a log of all your visits with the individual. Thus, please keep such a log if you have not been doing so already
Also consider that, under the new statute, the individual subject to the guardianship/conservatorship now needs to be given notice of the filing of the report. This requires a mailing to the individual and giving the individual two weeks to object before the guardianship/conservatorship report can be submitted to the Court for approval. As letters of guardianship/conservatorship now expire in 120 days versus 150 days, there is a shorter window in which the report can be presented for approval prior to the letters expiring.
In short, adult guardianship/conservatorship can be costly and complicated. It is best to do everything to avoid it or mitigate it by having a proper Durable Power of Attorney or Trust when possible. If a guardianship/conservatorship is necessary, the guardian-conservator and attorney need to work as a team so that the filings are timely, and the costs are minimized.
If you have questions about leaving property to a relative, guardianship/conservatorship, or would you like to discuss your estate plan, please contact our client care specialist, Margo Passeau, directly at (425) 296-3121 or by email at margo@bethmcdaniel.com
First Published: June 2023