Understanding Guardianship: Person vs. Estate

When you're responsible for the care of a loved one or planning for such scenarios in the future, understanding guardianship is crucial to ensure their protection and well-being. Guardianship comes in different forms, each with distinct responsibilities that cater to various needs. Making informed choices about guardianship helps safeguard personal and financial interests effectively.

Guardianship of the Person: Daily Decision-Making

A Guardian of the Person is tasked with overseeing daily and personal care decisions, ranging from where someone lives to managing medical care and education. For minors, this means handling essentials such as feeding, clothing, schooling, and healthcare. For adults, it could involve making medical appointments and deciding on residential arrangements. For instance, if your elderly parent can’t handle their medical appointments anymore, a Guardian of the Person would ensure they get to appointments and receive necessary care.

Guardianship of the Estate: Financial Oversight

The Guardian of the Estate carries the significant responsibility of managing the financial aspects. This role involves paying bills, managing assets, and protecting the property of the person under guardianship, often requiring placing these assets in a "blocked account." For example, if a loved one is no longer able to pay their own utility bills, the guardian manages those financial obligations directly. Importantly, guardianship of the estate requires court oversight to ensure financial decisions are made in the best interest of the individual under care.

Combined Guardianship: An All-Encompassing Role

In some cases, combined guardianship allows a single person to manage both personal care and financial matters. However, courts sometimes decide to allocate individuals to separately handle personal and estate responsibilities. This ensures that all aspects of a protected person's life are carefully managed, drawing on specialized expertise when needed.

Guardianship vs. Power of Attorney (POA)

Though both involve decision-making for another person, guardianship and a power of attorney (POA) are not the same. A POA is voluntarily set up by a competent person to delegate decision-making rights, whereas guardianship comes into play through court appointment when there's no prior legal arrangement. For instance, if someone has a financial POA but lacks a healthcare POA, a guardian may still be required to make personal or medical decisions. Courts are involved in all guardianship instances to provide the necessary oversight, including approving changes to guardianship arrangements if needed.

While guardianship includes legal intricacies, the process is designed to protect individuals who can no longer manage decisions independently. It's strongly advised to seek professional legal advice to navigate this process and develop a tailored, secure plan that aligns with your loved one's needs and financial stability.