Instructions for Guardianship Ledgers
A guardianship is a legal relationship between a guardian and his ward. A ward is an individual in need of special care and looking after. Wards are either minor children without parents or incompetent adults. The guardian is responsible for maintaining the personal and financial well-being of the ward. As such, every state requires the guardian to keep a careful and meticulous ledger of the expenditures and income of the ward. It is very important for the guardian to make note of every expenditure in the ledger, accompanied by a receipt, as nearly every jurisdiction requires a yearly accounting of the ward's estate. Guardians not keeping careful track of estate spending may be personally liable.
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Instructions
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Obtain all records immediately after being appointed guardian. Many states require an accounting at the outset of guardianship, so the court will have a frame of reference each year when it receives the yearly accounting sheet. As soon as the court appoints the guardian, he should review all tax records, accounts, investments, debts and liabilities of the ward. Some jurisdictions supply accounting sheets while others accept prepared documents from a certified accountant. Even if the state does not require an accounting at the outset, the guardian must get started right away with financial management for the ward, especially in particularly large or complex estates.
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Create an organized system for retaining receipts to be entered into the ledger. Depending upon the ward's incapacitation, he may still be able to use a debit or credit card to make purchases. Encourage the ward to report all purchases to the guardian. Access to the ward's banking information is vital for accurately keeping the ledger. Begin multiple ledgers depending upon the unique financial situation of the ward. If he has multiple checking or savings accounts, it is vital to separate the ledgers to avoid confusion come time for accounting. Many jurisdictions will require an itemized accounting of all receipts.
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Seek court approval for any significant disbursements from any of the ward's accounts. It is reasonable to expect that the guardian must expend money for upkeep and accounting services. However, court approval may be required for significant expenses, such as major home repairs, investment amendments or any other large transfer out of the estate. Maintain diligent records of court approval orders, as these will be required to be included in the annual accounting.
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Maintain a separate ledger for all tax-related information. Keeping tax records is very important each year, as it will help the court review the ward's estate to ensure his finances are in order. This includes all tax statements with regard to personal and real property, as well as income taxes and any other documents. The ward must prepare taxes each year, with the assistance of the guardian, and all records with regard to the ward's tax situation must be included.
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Maintain all information regarding any other miscellaneous financial information. This could include lawsuits filed by or against the ward, insurance policies, sale of property, brokerage statements or investment information. Intentional omission of financial information could easily result in personal liability for the guardian or even criminal charges.
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