A legal guardian is put in place to help handle the financial needs of someone who is not able to do so on their own. A legal guardian may be necessary when someone is facing mental or physical disabilities that prevent them from being able to take care of their own affairs. Once in place, a guardian is required to handle the finances of the person, but many people wonder whether they are responsible for the debt.
What are the Duties and Powers of a Guardian?
The duties and powers of a guardian are defined in Wisconsin law. Among the many duties required of a legal guardian, they must regularly inspect the person’s treatment and condition, review health records, and generally oversee the person’s condition and care. The guardian also has the rights and powers as defined by the court when they are appointed. A guardian typically has the right to oversee the financial and health decisions of the individual. The guardian also may act on behalf of the person to properly protect their best interests.
Debt Responsibility
Typically, a legal guardian is not held responsible for the debts of the protected person they oversee. Generally speaking, the debts of the protected person or ward are not the personal liability of the legal guardian. The finances are not to be intermingled and therefore remain separate. The guardian is tasked with handling the person’s finances, including payment of debts; however, the payment is to come from the person’s own funds. A guardian may also utilize funds from interest that comes from investments that are part of the person’s financial portfolio.
Mishandling of Funds
A legal guardian must at all times handle the ward’s finances in a manner that is in the ward’s best interest. A guardian should always act responsibly to pay debts from the ward’s funds. The court oversees the actions of the legal guardian, and the guardian must provide information and reports to the court. A guardian must always act in a scrupulous manner. If the court finds that mismanagement or negligence occurred, it could rule that the guardian must make repayment. In this way, a legal guardian could ultimately be responsible for debt if they are found to have acted negligently.
Seek Legal Guidance
A legal guardian is tasked with some serious responsibilities. As a guardian, you do not want to do anything, even unintentionally, that could risk your own personal funds. Guardianship can be somewhat complex, and it is helpful to seek legal guidance as you take over this important job. You will want to know your exact duties so that you take the steps necessary to properly handle the person’s finances. You will need to be certain that you are performing the duties appropriately so you won’t be personally held liable for any debts.
To learn more about the duties and powers of a legal guardian, call us at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online to schedule a consultation with our experienced legal team.