Understanding the Responsibilities of a Guardian of the Property in Maryland
When an individual becomes unable to manage their own financial or property affairs due to reasons such as age, illness, or disability, the court may appoint a guardian to take over these responsibilities. In Maryland, the term *guardian of the property* refers to someone who is legally appointed to manage and safeguard another person’s financial assets and property. This role is a serious one, and guardians are held to high standards of care and responsibility.
If you're considering filing a petition to request that the court appoint you as a guardian of the property of a loved one, or you’ve recently been appointed, it’s important to understand the scope of the role, the duties it entails, and the legal obligations that come with it. Let’s take a closer look at what this responsibility involves in Maryland.
What is a Guardian of the Property?
In Maryland, a *guardian of the property* is someone who has been appointed by the court to oversee the financial matters and property of an individual who is unable to do so themselves. This individual may be referred to as the *ward*. The appointment can happen due to the ward's incapacity, which could result from physical or mental health issues, including conditions like dementia, Alzheimer’s disease, or other impairments.
While a guardian of the property focuses on managing the ward’s financial assets, a separate individual (sometimes the same person) might be appointed as the *guardian of the person* to handle the personal care decisions for the ward.
Duties of a Guardian of the Property
The guardian of the property in Maryland has a fiduciary duty to act in the best interests of the ward. This means the guardian must handle the ward’s finances prudently, with the utmost care and integrity. Some of the key responsibilities include:
Managing and Safeguarding the Ward's Assets
A guardian of the property must take control of the ward's financial assets, which can include real estate, bank accounts, investments, and personal property. This includes making sure that assets are protected from theft, loss, or unnecessary depreciation. The guardian must also ensure that the ward’s bills, taxes, and other financial obligations are paid on time.
Preserving Assets Prudently
The guardian is responsible for managing the ward’s assets in a way that is financially sound. This might involve making decisions regarding investments or selling property. They must act in a way that prioritizes the financial well-being of the ward.
Regular Accounting to the Court
Guardians must provide regular accountings to the court, usually annually, detailing all financial transactions, including income, expenditures, and investments made on behalf of the ward. These reports help ensure that the guardian is fulfilling their responsibilities properly and transparently. Failure to comply with this requirement can result in the court removing the guardian and appointing a new one.
Ensuring the Ward's Financial Stability
Part of the guardian’s duty is ensuring that the ward’s property is managed in such a way that their financial stability is preserved for the future. This includes making decisions that will safeguard the ward’s ability to pay for necessary care, medical expenses, and other needs now and in the future.
Providing for the Ward’s Needs
Although the guardian of the property does not make medical or personal care decisions, they may need to work closely with the guardian of the person (if appointed) to ensure that the ward’s financial resources are allocated properly to cover healthcare, living expenses, and other necessities.
Paying Debts and Taxes
A guardian must ensure that all debts, taxes, and other financial obligations of the ward are paid. This could include filing income taxes, paying property taxes, and managing any outstanding debts or loans. The guardian must also protect the ward’s credit and avoid actions that could negatively impact their financial standing.
Seeking Court Approval for Major Transactions
In certain cases, guardians may need to seek court approval before engaging in significant financial transactions, such as selling real estate. This ensures that the guardian’s actions are always in the best interest of the ward.
How is a Guardian of the Property Appointed?
In Maryland, a guardian of the property is appointed by the court following a legal process. If an individual believes that someone is unable to manage their own affairs, a petition for guardianship can be filed. This petition may be initiated by family members, close friends, or concerned parties.
The court will require medical evaluations and testimony, to determine whether guardianship is necessary and will appoint an attorney on behalf of the allegedly disabled party.
The Fiduciary Duty and Legal Responsibilities of Guardians
As a guardian of the property, you are held to a *fiduciary duty*. This means that you are legally obligated to act in the best interests of the ward at all times, prioritizing their financial well-being above your own. Fiduciaries are prohibited from using the ward's assets for personal gain, and any breach of fiduciary duty can lead to serious legal consequences, including removal or criminal liability.
Ending Guardianship
A guardianship can be terminated in a number of ways. If the ward’s condition improves and they regain the ability to manage their affairs, they can petition the court to remove the guardian and reinstate their legal rights. Additionally, if the guardian fails in their duties or if the ward passes away, the guardianship will come to an end.
Conclusion
Being appointed as a guardian of the property is a significant responsibility. Guardians must carefully manage and protect the assets of the ward, ensure their financial needs are met, and always act in the ward’s best interest. In Maryland, the courts hold guardians accountable to ensure that the ward’s property is handled with the utmost care, transparency, and integrity. If you are considering or have been appointed as a guardian of the property, it’s important to understand your legal obligations and the seriousness of the role you have undertaken. It is best to consult with an attorney to ensure that you meet your fiduciary duties and comply with the laws governing guardianship in Maryland. If you are considering filing for guardianship, or challenging or modifying an existing guardianship, the attorneys at Markham Law Firm can help.