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If a conservator is not appointed, as a full guardian you control the monthly income of the individual and the money in his or her bank account.
In controlling money, what are my obligations?
You owe the individual what is known as a fiduciary duty, one of care, confidence, and trust. You must be careful.
You must not intermingle the individual's money with your own. You cannot use the money for your own needs, including a loan. You should not buy anything from or sell anything to, the individual without prior court approval.
If ordered by the court, you must account to the court for all money received and all money spent each year.
What are my priorities in using the money?
1. First, pay for present needs of the individual.What if I am unsure a past bill is valid?2. If there are sufficient funds to pay for present needs, satisfy past debts
3. Conserve excess funds for future needs.
Do not pay a bill if you question its validity.
Might the court authorize the individual to handle part of his or her money or other property?
Yes. To encourage self-reliance and independence, the court may put this in its order. The court may or may not specify an amount.
Can I give individual control of some of her or his money if the court order is silent on the issue?
Yes. You should do this if at all possible. You might maintain a separate checking or savings account in the individual's name alone, or give the individual amounts of cash to spend as he or she wishes.
If I give cash to the individual, do I need a receipt?
No. It is demeaning to request a receipt from someone receiving his or her own money. Do keep a record of the cash outlays.
Should I discuss financial matters with the individual?
Yes, if possible. A person who no longer has control of his or her money may feel others are stealing or otherwise misusing it. You should try to allay those fears.
Can I make large gifts to relatives of the individual?
No. Nor do you have authority to change the beneficiary of a life insurance policy on the individual or to sign a federal or state tax return.
What should I do upon being appointed guardian?
If there is no conservator appointed, set up a bank account.
How should I choose a bank?
If the individual does not presently have a bank, consider convenience, interest rates, services charges, and reputation for service.
What information will the bank need?
The bank will want to see, and perhaps keep, a certified copy of your letters of authority. The bank will need proof of your identity, such as a driver's license, and the social security number of the individual.
What type of account should I set up?
You will likely want a checking account, or both a checking and a savings account. Use the individual's social security number. Do not create a joint account. The account name should read:
Individual's Name by: Guardian's NameOnce the account is established, what do I do?
GUARDIAN
Transfer money from existing accounts of the individual to the guardianship account. Maintain a separate account if the individual is going to control part of his or her money.
What will happen to Social Security checks that were directly deposited into the previous account?
Monthly Social Security or Supplemental Security Income (SSI) checks could continue to go directly to the bank, deposited into the guardianship account. Notify Social Security of the change in account number; the bank may have the necessary form.
What if existing accounts are joint between the individual and another person?
Request a determination by the probate court what part of the money belongs to the individual.
Should I pay bills and other expenses by check or in cash?
Use the new checking account to pay for purchases and bills. The monthly statement and canceled checks the bank sends to you provide a convenient record of income and expenses. If you do pay cash, make sure you keep a receipt.
Should I notify utility companies to send bills directly to my address?
It may be helpful to have utility and tax bills come directly to you.
Should I keep additional financial records?
Yes. It is best to keep a log showing the date and amount of all income received, and the date, amount, and purpose of all expenses, particularly those paid in cash. At the end of each month, total the expenses in categories, such as:
- foodKeep all bills, receipts, income statements, and insurance reimbursement records, and store them separately from your own papers.- clothing
- shelter, including utility bills
- health and dental care
- insurance, e.g., health, life, homeowners
- other
How long do I need to keep old records?
Keep records for at least three years.
What if the individual has always received Social Security checks at home?
If the individual receives either Social Security or SSI checks at home, apply at the nearest Social Security office to become representative payee. Bring a copy of the petition for guardianship and your letters of guardianship.
What will happen if I am appointed representative payee?
Upon your appointment, the monthly checks will come directly to you, or you can arrange for direct deposit into the guardianship account.
For those funds, you will have to file an annual account with the Social Security Administration.
What if the individual receives Veterans Benefits?
Through the Veterans Administration, a person can become custodian of pension or disability funds of an individual. A VA field representative visits to determine whether you are appropriate to be custodian. The representative conducts periodic reviews of your performance, eliciting information about how money was spent, your visits, and any medical treatment the individual received.
You must inform the VA if the individual goes into a VA hospital.
Is there an initial record I should make?
Yes. It is a good idea to compile a “face sheet” with important information you will need in the future. The face sheet can be the first page of a diary, as shown later in this handbook.
It is also wise to make a list of all personal property for which you are responsible.
After becoming guardian, what if I find the assets are valuable enough to require investment management?
You should petition the probate court for appointment of a conservator.
PC 639 Petition for Appointment of a Conservator or Protective OrderIs it necessary for the court to appoint a conservator if only a single transaction is required?
No. Upon petition, the court, itself, can authorize any financial transaction it finds to be in the best interest of the individual. For example, the court could authorize the sale of stock to pay for an individual’s continued nursing home stay. The court’s action is known as a protective order.
How are my responsibilities as guardian different when the court also appoints a conservator?
If a conservator is appointed, you would inform the conservator about the cost of housing, health, food and services needs of the individual. The conservator might pay theses expenses directly or give you sufficient money to cover them. In the latter case, you would provide receipts to the conservator.
If you continue to receive income of the individual directly, turn over to the conservator any amount in excess of that required to meet current expenses of the individual.
It is the conservator’s responsibility to file an inventory and to file annual accounts with the court.
What is the conservator will not cooperate with me?
It remains the responsibility of the guardian to see the individual’s daily needs are met. If there are differences of opinion between you and the conservator that cannot be resolved, contact the probate court. A guardian can compel a conservator to pay for support of the individual.
Visit the individual and try to explain your function. Ask the individual what you can do to help him or her. Observe living conditions. Talk with staff. Determine what you must to do meet the immediate needs of the individual - for clothing, food, shelter, and health care.
May I seek a professional assessment of the individual's physical, mental health, and social needs?
Yes.
Whom would I contact to conduct an assessment?
Contact your county aging or community mental health agency for resources available in your community.
Need all services be provided by an outside professional?
No. For example, the individual might desire special books or tapes from the public library. You could perform this task. But generally it isn't your responsibility to provide services, but to arrange for services available in the community.
What types of professional services might the individual need?
- Health and dental careHow do I know what services are available in the community?- Personal care, including feeding, bathing, dressing
- Housing, including housekeeping, maintenance and repair
- Nutrition, including home delivered meals and food stamps
- Recreation
- Education
- Day care
- Transportation
There may be a published resource directory for the community, or an informational and referral service. For older adults, contact your county department of aging or area agency on aging.
Are services available at no cost?
Some services are available for free. Others are offered on a donation basis or a sliding fee scale. Still others are straight fee for service.
May I purchase services from an individual or business, as well as from a nonprofit agency?
Yes.
If you employ an individual to perform household work, make sure you comply with requirements for paying the worker's social security taxes.
Do I have power to arrange in advance for funeral and burial?
Yes. If the individual has not already made arrangements, try and determine his or her wishes. If you pay in advance, make sure the cost of the arrangements will not disqualify the individual for any public benefit programs he or she may need.
Am I responsible for using my own money to pay for services for the individual?
No.
However, when you are appointed guardian, the individual may not be receiving all financial benefits to which he or she is entitled. It is part of your responsibility to seek out such assistance.
May I sign an application for benefits on behalf of the individual?
Yes.
What are some retirement programs for which the individual may be eligible?
- Social SecurityWhat are some disability programs for which the individual may be eligible?- Supplementary Security Income (SSI)
- Veterans Administration
- Railroad Retirement
- Pension from public or private employer
- Social SecurityWhat do I have to find out about each program?- Supplementary Security Income
- Veterans Administration
- Workers Compensation
- Black Lung
1. What benefits are available?How do I get this information?2. What are the eligibility criteria - age, income, assets, work record?
3. Where does one apply?
4. What information/proof is required?
There are a number of free pamphlets available. If the individual is low income or age 60 or older, you might receive guidance from the local free legal services program.
Are there ways I can help an individual become eligible?
There may be. For instance, if an individual's assets exceed the program maximum, you could spend the excess on needs such as a wheelchair ramp or prepaid funeral.
Beware of rules prohibiting divestment, giving away assets or selling them for less than their value.
Are there other ways of helping the individual become eligible?
Yes. For example, if an individual has assets, is under age 65, and meets the federal definition of a disabled person, you can set up what is known as a special needs trust or OBRA trust. The money put in trust is then not considered an asset for eligibility purposes.
An OBRA trust can be established through the probate court using a protective order.
Where do I apply for programs?
Apply to the local Social Security office for Social Security benefits, SSI and Medicare. Apply to the county office of the Family Independence Agency for Medicaid and food stamps. Call the Veterans Administration Office for VA benefits.
Once the individual is receiving a benefit, what is my responsibility?
A number of programs, such as SSI and Medicaid, have asset limits; if the individual exceeds these limits, he or she becomes ineligible. By effectively managing finances through paying for current needs or wants of the individual, or by establishing an OBRA trust, you can often maintain his or her eligibility.
What are my duties to the agency providing the benefit?
Depending on the program, you may have an obligation to keep the agency informed of changes in the individual's address, living situation, income, and value of assets
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Last Updated 6-18-01
Send your comments, questions and suggestions to Phil Harter at 161
E Michigan Avenue, Battle Creek, Michigan 49014 or
e mail to pharter@calhouncountymi.gov