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.

 1. 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.

2. 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:

a. 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.

 b. 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.

c. 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.

d. 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.

e. 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.

f. 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.

g. 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.

 3. 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.  

4. 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.

5. 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.

6. 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 are meeting your fiduciary duties and complying 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.

Understanding Guardianship in Maryland: Person vs. Property

Navigating the legal landscape of guardianship can be complex, especially when it involves the well-being and assets of a loved one. In Maryland, guardianship is divided into two distinct types: guardianship of the person and guardianship of the property. Each type serves a unique purpose and involves different responsibilities. Let’s explore the differences between these two forms of guardianship and what they entail. 

Guardianship of the Person

Guardianship of the person is focused on the personal and medical care of an individual who is unable to make decisions for themselves. This type of guardianship is typically sought for minors, elderly adults, or individuals with disabilities who cannot make or communicate responsible decisions for their own needs.

Responsibilities of a Guardian of the Person:

1. Healthcare Decisions The guardian is responsible for making medical decisions on behalf of the ward (the person under guardianship). This includes consenting to or refusing medical treatments and ensuring the ward receives appropriate medical care.

2. Living Arrangements: The guardian decides where the ward will live, ensuring that the living conditions are safe and appropriate. This could involve arranging for in-home care, assisted living, or a nursing facility.

3. Personal Care: The guardian oversees the ward's daily needs, such as food, clothing, hygiene, and general well-being. This might include coordinating with caregivers or service providers.

4. Education and Social Activities: For minors or individuals with specific educational needs, the guardian ensures that educational and social activities are arranged and that the ward has opportunities for engagement and development.

Guardianship of the Property

Guardianship of the property, on the other hand, pertains to managing the financial affairs and assets of an individual who cannot do so themselves. This is often necessary when the ward has substantial assets that need to be protected and managed prudently.

Responsibilities of a Guardian of the Property: 

1. Asset Management: The guardian is tasked with managing the ward’s assets, including bank accounts, investments, real estate, and personal property. This involves making decisions to preserve and potentially grow these assets.

2. Bill Payments: The guardian ensures that all bills are paid on time, including utility bills, mortgage payments, taxes, and any other financial obligations.

3. Financial Planning: The guardian may need to create a budget, manage income, and plan for future financial needs to ensure the ward's long-term financial stability.

4. Legal and Financial Transactions: The guardian can enter into legal agreements and financial transactions on behalf of the ward. This includes filing taxes, dealing with insurance, and making any necessary legal claims.

Key Differences

 While both types of guardianship aim to protect and support individuals who cannot care for themselves, the key difference lies in their focus:

- Guardianship of the Person: Centers on personal, medical, and day-to-day care.

- Guardianship of the Property: Focuses on financial management and asset protection.

Seeking Guardianship in Maryland

In Maryland, the process for establishing either type of guardianship involves petitioning the court. The petitioner must provide evidence that the prospective ward is incapable of managing their personal or financial affairs. An attorney will be appointed to represent the ward's interests in the guardianship matter. If after a hearing the court finds that a guardianship is appropriate under the law, the court will appoint a guardian based on a statutory priority and in consideration of the ward's best interests. 

It’s important to note that the same individual can be appointed as both the guardian of the person and the guardian of the property, or these roles can be filled by different people depending on the circumstances and capabilities of the guardians.

Conclusion 

Understanding the distinction between guardianship of the person and guardianship of the property is crucial for anyone involved in the care of a vulnerable individual in Maryland. Each type of guardianship comes with its own set of responsibilities and challenges, but both are aimed at ensuring the well-being and security of those who cannot care for themselves without imposing unnecessary restrictions on a person's liberties. If you find yourself in a situation where guardianship might be necessary, consulting with an attorney at Markham Law Firm can help you navigate this important process.

Understanding Guardianship in Maryland: When Is It Appropriate?

In Maryland, guardianship is a legal arrangement where a court appoints a person (the guardian) to make decisions for another person (the ward) who is unable to make decisions for themselves due to reasons such as age, incapacity, or disability. This blog aims to provide a clear understanding of when guardianship is appropriate and the process involved in Maryland.

What Is Guardianship? 

Guardianship is a legal relationship established by a court order. It involves:

1. Guardian: The person appointed to make decisions on behalf of the ward.

2. Ward: The individual who needs assistance with decision-making. In Maryland, until a guardianship is established by the Court, the ward is often referred to as an "Alleged Disabled Person."

Guardianship can be of the person, of the property, or both:

- Guardianship of the Person: The guardian makes personal decisions for the ward, such as those related to healthcare and living arrangements.

- Guardianship of the Property: The guardian manages the ward's financial matters, including assets and income.

When Is Guardianship Appropriate? 

Guardianship is generally considered a last resort because it removes a person’s rights to make their own decisions. Maryland law provides for less restrictive alternatives to guardianship and requires that guardianship only be imposed when there is no less restrictive alternative available which protects the ward. Guardianship is appropriate in the following situations:

1. Minor Children

Guardianship may be necessary for minor children (under 18 years old) when:

- The parents are deceased.

- The parents are unfit or unable to care for the child.

- There is no other parent, family member, or adult willing or able to take responsibility.

2. Adults with Disabilities

For adults with disabilities, guardianship might be necessary if:

- The individual has a significant intellectual or developmental disability.

- The individual is unable to make or communicate responsible decisions about personal care, finances, or health due to mental disability, disease, habitual drunkenness or addiction to drugs.

- There are no less restrictive alternatives, like a power of attorney, that can meet the person’s needs.

3. Elderly Individuals

Elderly individuals may need a guardian if they:

- Have dementia, Alzheimer's, or another condition that significantly impairs their cognitive functions.

- Cannot manage their personal or financial affairs.

- Are at risk of abuse, neglect, or exploitation and need protection.

4. Emergency Situations

In emergency situations where an individual is in immediate danger or is unable to care for themselves due to a sudden illness or accident, temporary guardianship can be established by the court to ensure the person's safety and well-being.

The Guardianship Process in Maryland

The process to establish guardianship in Maryland involves several steps: 

1. Filing a Petition

A person seeking that a guardian be appointed must file a petition with the Circuit Court in the county where the ward lives. The petition should include:

- Detailed reasons why guardianship is necessary.

- Information about the proposed ward’s condition and incapacity including medical certificates.

-Reasons why less restrictive alternatives would be ineffective or have been attempted and failed

- The proposed guardian’s qualifications and willingness to serve.

2. Evidence and Right to Counsel

Two certificates of incapacity must be provided, from at least one doctor and either a second doctor or a psychologist, social worker or psychiatrist, attesting to the proposed ward’s inability to manage their personal or financial affairs. An attorney will be appointed on behalf of the alleged disabled person to ensure their right to due process is protected.

3. Court Hearing 

The court will schedule a hearing where: 

- Evidence is presented regarding the Alleged Disabled Person's condition and need for guardianship.

- Interested parties can express their views.

- The proposed guardian’s suitability is evaluated.

-If finances are involved, bond is either ordered or waived.

 4. Court Order

If the court finds guardianship is necessary and that the proposed guardian is suitable, it will issue a guardianship order specifying the scope of the guardian’s powers and responsibilities.

Alternatives to Guardianship 

Before pursuing guardianship, it’s important to consider less restrictive alternatives that might be sufficient, such as:

- Power of Attorney: If the person has capacity, it allows a person to appoint someone to make decisions on their behalf.

- Health Care Agent/Proxy: If the person has capacity, they can appoint someone to make healthcare decisions in the event they become incapacitated.

Conclusion

Guardianship is a significant legal step that should only be taken when necessary to protect a person who cannot protect themselves. In Maryland, it is used to ensure the safety and well-being of minors, adults with disabilities, and elderly individuals who are unable to make decisions due to incapacity. By understanding the process and exploring all alternatives, guardianship can be effectively utilized to support those in need while respecting their rights and autonomy.

Further Resources

By understanding when and how guardianship is appropriate, we can better ensure that vulnerable individuals receive the care and protection they need. If you feel that guardianship is an option for your family, call Markham Law Firm to learn more.