“If I serve as my parent’s guardian or conservator, will I be liable for my parent’s bills?” Anyone who is considering serving as a guardian or conservator wants to know if the role will involve personal financial responsibility. Provided that the guardian or conservator acts in the best interest of the ward, the answer is generally no – serving as a guardian or conservator does not lead to personal financial liability for a ward’s expenses.
A guardian manages the medical care and housing decisions for a ward, but a guardian is not expected to use his or her own funds to pay the ward’s expenses. All support and maintenance expenses for the ward will be paid from the ward’s own funds, either by the ward or by someone with authority over the ward’s finances, such as a conservator or an agent acting under a financial power of attorney. Georgia law does not provide for compensation to a guardian, but if a guardian incurs reasonable and necessary expenses on behalf of a ward (such as buying groceries or picking up prescriptions), those expenses generally can be reimbursed from a ward’s assets.
A conservator manages finances, collecting income and paying bills for a ward, but he or she is not expected to use his or her own funds to support the ward and can be reimbursed for reasonable and necessary expenses. Georgia law provides that a conservator be compensated, generally in an amount equal to 2.5% of funds coming into the conservatorship and 2.5% of funds paid out of the conservatorship. A conservator also is required to post a bond before being appointed to insure against mismanagement or misappropriation of the ward’s assets. Practically speaking, the conservator likely will pay the bond fee up front, but once appointed the conservator can be reimbursed from the ward’s funds.
Guardians and conservators have a duty to act in their ward’s best interest. A court may deny compensation or expense reimbursements if it is shown that a guardian or conservator incurred unnecessary expenses, misappropriated or mismanaged funds, or otherwise acted improperly.
Those who initiate guardianship or conservatorship proceedings sometimes ask about their own legal fees. Although the petitions may be filed without an attorney, many petitioners hire counsel and incur legal expenses. If the proceedings result in the appointment of a guardian and/or conservator, probate courts may permit some or all of the petitioner’s legal fees be reimbursed, on the theory that the appointment of a guardian or conservator was in the ward’s best interest. Courts consider a wide range of factors, including the financial circumstances of the ward, the estimated future financial needs of the ward, and the amount of legal fees at issue. However, petitioners should be prepared to pay their own legal fees because reimbursement of those fees is never guaranteed.
If you have questions about any financial aspect of guardianship and conservatorship proceedings, please consult with Baumbusch Law.