09.29.09
Can Guardians Manage Any Money?
The Code makes it clear that guardians are for the care of the person and conservators are to manage their the property. But it also says that anyone having money or personal property due a minor can pay up to $5,000 to a guardian (among others) if he is not aware of any conservator appointment (5-102). So, does this mean a guardian of a minor can manage up to $5,000? I dont’t think so. 5-102 provides a safe haven only for the payor. That could be a bank, insurance company or executor, but it doesn’t say the guardian can handle it on an ongoing basis. The guardian can apply the money to the ward’s current needs (5-209(b)(4)) and conserve any excess for future needs. The funds might be periodic income like SSI which the guardian can accept and apply to immediate expenses. The guardian of a minor or adult can also seek, receive and apply support payments from a parent, trust, public entitlement, etc. (5-209(c)). But, if any money has to be deposited to a bank account such that a fiduciary has future access to it, that fiduciary needs to be a conservator.