This NebFact, the fifth in a series, discusses legal guardianship and related financial responsibilities

Cudly, Bruce

Defrain, John

Evans, Mary

Ferdinand, Rene

Gordon, Mary

Krumbach, Eileen

Lieske, Carol

Rathje, Dina

English

DigitalCommons@University of Nebraska

University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Historical Materials from University of Nebraska-Lincoln Extension Extension 2005 NF05-620 Guardianship/Conservatorship Financial Responsibilities Eileen Krumbach University of Nebraska--Lincoln, ekrumbach1@unl.edu John Defrain University of Nebraska--Lincoln, jdefrain1@unl.edu Bruce Cudly Dina Rathje Carol Lieske See next page for additional authors Follow this and additional works at: https://digitalcommons.unl.edu/extensionhist  Part of the Agriculture Commons, and the Curriculum and Instruction Commons Krumbach, Eileen; Defrain, John; Cudly, Bruce; Rathje, Dina; Lieske, Carol; Ferdinand, Rene; Evans, Mary; and Gordon, Mary, "NF05-620 Guardianship/Conservatorship Financial Responsibilities" (2005). Historical Materials from University of Nebraska-Lincoln Extension. 361. https://digitalcommons.unl.edu/extensionhist/361 This Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Historical Materials from University of Nebraska-Lincoln Extension by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. Authors Eileen Krumbach, John Defrain, Bruce Cudly, Dina Rathje, Carol Lieske, Rene Ferdinand, Mary Evans, and Mary Gordon This article is available at DigitalCommons@University of Nebraska - Lincoln: https://digitalcommons.unl.edu/extensionhist/361 Nebraska Cooperative Extension NF05-620Guardianship/Conservatorship Financial Responsibilities  By Development Team: Eileen Krumbach, Extension Educator, University of Nebraska; John DeFrain, Extension Family and Community Development Specialist, University of Nebraska; Bruce Cudly, Region V Services; Dina Rathje, Family Counselor; Carol Lieske, Nebraska State Department of Health and Human Services, Adult Protective Services; Rene Ferdinand, Arc of Nebraska; Mary Evans, Guardian; Mary Gordon, Nebraska Developmental Disabilities Planning Council/Nebraska Department of Health and Human Services  This NebFact, the fifth in a series, discusses legal guardianship and related financial responsibilities. Guardianship Financial Responsibilities Guardianship includes some financial responsibilities (which are conservatorship responsibilities) on behalf of the Ward. In cases in which the Ward has a large estate or trust, the Court may appoint a conservator to oversee and have sole responsibility for these funds. However, in many cases the everyday oversight of the Ward's funds will be the Guardian's responsibility. The Guardian is not mandated or expected to use his or her own funds for the Ward but the Guardian is mandated to the use the Ward's funds for the Ward's support. State law assigns some specific financial responsibilities to the Guardian. There are also some best practices that a Guardian should use to ensure that the Ward's monies are being appropriately handled.  Legal Requirements  z Apply for private or governmental benefits to which the Ward may be entitled.  z Enter into contract agreements for the Ward, if the Ward does not have a conservator.  z Receive money/tangible property delivered to the Ward and apply the money to the Ward's expenses, if no conservator has been appointed.  z File a report with the court annually or at the court's request. This report should include a discussion of the Ward's condition and his/her estate.  z Bring actions against any individual whose duty is to support the Ward, if the Ward does not have a conservator.  z Submit an application to the Court for approval before collecting fees for Guardian services. If the Ward has a conservator, the law gives the conservator the authority to pay the Guardian reasonable sums for services without court approval.  z Obtain court approval prior to using the Ward's funds for room and board provided by the Guardian's spouse, parent or child.  Best Practices  z The Guardian should avoid even the appearance of a conflict of interest or impropriety when dealing with the Ward's needs. Impropriety or conflict of interest arises where the Guardian has some personal or agency interest that might be perceived as self-serving or adverse to the Ward's position or best interest. An example might be a Guardian purchasing a Ward's real or personal property.  z The Guardian must not commingle personal funds with the Ward's funds.  z Based on the Ward's abilities, the Guardian should allow the Ward access to and management of funds for personal needs.  z All accounting of the Ward's funds should contain sufficient information to clearly define all significant transactions during the accounting period. Such reports should be complete, accurate and understandable.  z The Guardian must not borrow funds from the Ward.  z The Guardian should not encourage the Ward to make gifts or bequests that will benefit the Guardian, the Guardian's family or any entity in which the Guardian has an interest.  z The history and traditions of the Ward regarding gift giving should serve as the guide for the Guardian when determining gifts from the Ward.  z If a Guardian is requesting a fee for his/her services, the following factors should be considered in determining the reasonableness of the request: { Necessity of the service  { Time and labor required  { Degree of difficulty  { Skill and experience required to carry out the duty  { Needs of the Ward  z Fees or expenses charged by the Guardian should be documented through billings maintained by the Guardian. They should include: { Time spent on a task  { Duty performed  { Expense incurred  { Collateral contacts involved  z The Guardian should only charge for the work directly related to the management of a specific Ward.  In some cases the Ward may receive monetary benefits (SSI, SSDI, Railroad Retirement, Trusts, etc.) that require a representative payee or fiduciary. The Guardian may be named the representative payee or fiduciary in these situations. The Guardian can request that someone else be the payee for the funds but the Guardian retains the responsibility for oversight of these funds to ensure they are being used on behalf of the Ward. However, all of these payers have regulations on receiving, handling and reporting these funds. If the Guardian is the representative payee or fiduciary for any of these funding sources, he/she will need to contact the payer for specific instructions.  If additional guidance is needed to make a financial decision, the Guardian should consult with a professional with expertise in this area.  ReferencesNational Guardianship Association. (1998). A Model Code of Ethics for Guardians. Tucson, Arizona: NGA.  National Guardianship Association. (2003). Standards of Practice. Tucson, Arizona: NGA.  Nebraska Department of Health and Human Services, Division of Aging and Disability Services. Surrogate Decision Making in Nebraska. Lincoln, NE: NHHS.  Nebraska Revised Statutes, Article 26, Section 30-2601-2661.  File NF620 under FAMILY LIFE F-64, Relationships Issued April 2005  Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Elbert C. Dickey, Dean and Director of Cooperative Extension, University of Nebraska, Institute of Agriculture and Natural Resources.  University of Nebraska Cooperative Extension educational programs abide with the non-discrimination policies of the University of Nebraska-Lincoln and the United States Department of Agriculture.

NF05-620 Guardianship/Conservatorship Financial Responsibilities

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University of Nebraska - Lincoln 
DigitalCommons@University of Nebraska - Lincoln 
Historical Materials from University of 
Nebraska-Lincoln Extension Extension 
2005 
NF05-620 Guardianship/Conservatorship Financial 
Responsibilities 
Eileen Krumbach 
University of Nebraska--Lincoln, ekrumbach1@unl.edu 
John Defrain 
University of Nebraska--Lincoln, jdefrain1@unl.edu 
Bruce Cudly 
Dina Rathje 
Carol Lieske 
See next page for additional authors 
Follow this and additional works at: https://digitalcommons.unl.edu/extensionhist 
 Part of the Agriculture Commons, and the Curriculum and Instruction Commons 
Krumbach, Eileen; Defrain, John; Cudly, Bruce; Rathje, Dina; Lieske, Carol; Ferdinand, Rene; Evans, Mary; 
and Gordon, Mary, "NF05-620 Guardianship/Conservatorship Financial Responsibilities" (2005). Historical 
Materials from University of Nebraska-Lincoln Extension. 361. 
https://digitalcommons.unl.edu/extensionhist/361 
This Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - 
Lincoln. It has been accepted for inclusion in Historical Materials from University of Nebraska-Lincoln Extension by an 
authorized administrator of DigitalCommons@University of Nebraska - Lincoln. 
Authors 
Eileen Krumbach, John Defrain, Bruce Cudly, Dina Rathje, Carol Lieske, Rene Ferdinand, Mary Evans, and 
Mary Gordon 
This article is available at DigitalCommons@University of Nebraska - Lincoln: https://digitalcommons.unl.edu/
extensionhist/361 
Nebraska Cooperative Extension NF05-620
Guardianship/Conservatorship Financial 
Responsibilities  
By Development Team: 
Eileen Krumbach, Extension Educator, University of Nebraska; John DeFrain, Extension Family and 
Community Development Specialist, University of Nebraska; Bruce Cudly, Region V Services; Dina 
Rathje, Family Counselor; Carol Lieske, Nebraska State Department of Health and Human Services, 
Adult Protective Services; Rene Ferdinand, Arc of Nebraska; Mary Evans, Guardian; Mary Gordon, 
Nebraska Developmental Disabilities Planning Council/Nebraska Department of Health and Human 
Services  
This NebFact, the fifth in a series, discusses legal guardianship and related financial responsibilities. 
Guardianship Financial Responsibilities 
Guardianship includes some financial responsibilities (which are conservatorship responsibilities) on 
behalf of the Ward. In cases in which the Ward has a large estate or trust, the Court may appoint a 
conservator to oversee and have sole responsibility for these funds. However, in many cases the 
everyday oversight of the Ward's funds will be the Guardian's responsibility. The Guardian is not 
mandated or expected to use his or her own funds for the Ward but the Guardian is mandated to the use 
the Ward's funds for the Ward's support. State law assigns some specific financial responsibilities to the 
Guardian. There are also some best practices that a Guardian should use to ensure that the Ward's 
monies are being appropriately handled.  
Legal Requirements  
? Apply for private or governmental benefits to which the Ward may be entitled.  
? Enter into contract agreements for the Ward, if the Ward does not have a conservator.  
? Receive money/tangible property delivered to the Ward and apply the money to the Ward's 
expenses, if no conservator has been appointed.  
? File a report with the court annually or at the court's request. This report should include a 
discussion of the Ward's condition and his/her estate.  
? Bring actions against any individual whose duty is to support the Ward, if the Ward does not have 
a conservator.  
? Submit an application to the Court for approval before collecting fees for Guardian services. If the 
Ward has a conservator, the law gives the conservator the authority to pay the Guardian 
reasonable sums for services without court approval.  
? Obtain court approval prior to using the Ward's funds for room and board provided by the 
Guardian's spouse, parent or child.  
Best Practices  
? The Guardian should avoid even the appearance of a conflict of interest or impropriety when 
dealing with the Ward's needs. Impropriety or conflict of interest arises where the Guardian has 
some personal or agency interest that might be perceived as self-serving or adverse to the Ward's 
position or best interest. An example might be a Guardian purchasing a Ward's real or personal 
property.  
? The Guardian must not commingle personal funds with the Ward's funds.  
? Based on the Ward's abilities, the Guardian should allow the Ward access to and management of 
funds for personal needs.  
? All accounting of the Ward's funds should contain sufficient information to clearly define all 
significant transactions during the accounting period. Such reports should be complete, accurate 
and understandable.  
? The Guardian must not borrow funds from the Ward.  
? The Guardian should not encourage the Ward to make gifts or bequests that will benefit the 
Guardian, the Guardian's family or any entity in which the Guardian has an interest.  
? The history and traditions of the Ward regarding gift giving should serve as the guide for the 
Guardian when determining gifts from the Ward.  
? If a Guardian is requesting a fee for his/her services, the following factors should be considered in 
determining the reasonableness of the request: 
? Necessity of the service  
? Time and labor required  
? Degree of difficulty  
? Skill and experience required to carry out the duty  
? Needs of the Ward  
? Fees or expenses charged by the Guardian should be documented through billings maintained by 
the Guardian. They should include: 
? Time spent on a task  
? Duty performed  
? Expense incurred  
? Collateral contacts involved  
? The Guardian should only charge for the work directly related to the management of a specific 
Ward.  
In some cases the Ward may receive monetary benefits (SSI, SSDI, Railroad Retirement, Trusts, etc.) 
that require a representative payee or fiduciary. The Guardian may be named the representative payee or 
fiduciary in these situations. The Guardian can request that someone else be the payee for the funds but 
the Guardian retains the responsibility for oversight of these funds to ensure they are being used on 
behalf of the Ward. However, all of these payers have regulations on receiving, handling and reporting 
these funds. If the Guardian is the representative payee or fiduciary for any of these funding sources, 
he/she will need to contact the payer for specific instructions.  
If additional guidance is needed to make a financial decision, the Guardian should consult with a 
professional with expertise in this area.  
References
National Guardianship Association. (1998). A Model Code of Ethics for Guardians. Tucson, Arizona: 
NGA.  
National Guardianship Association. (2003). Standards of Practice. Tucson, Arizona: NGA.  
Nebraska Department of Health and Human Services, Division of Aging and Disability Services. 
Surrogate Decision Making in Nebraska. Lincoln, NE: NHHS.  
Nebraska Revised Statutes, Article 26, Section 30-2601-2661.  
File NF620 under FAMILY LIFE 
F-64, Relationships 
Issued April 2005  
Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation 
with the U.S. Department of Agriculture. Elbert C. Dickey, Dean and Director of Cooperative 
Extension, University of Nebraska, Institute of Agriculture and Natural Resources.  
University of Nebraska Cooperative Extension educational programs abide with the non-discrimination 
policies of the University of Nebraska-Lincoln and the United States Department of Agriculture.


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NF05-620 Guardianship/Conservatorship Financial Responsibilities

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