Putting One’s Personal Affairs in Order: an Estate Planning Overview – Vol. 5: Court Appointed Guardian of Property

In my last blog, I wrote about Continuing Powers of Attorney for Property, in which you can name one or more individuals to manage your financial affairs on your behalf should you become incapable of doing so yourself. If you do not appoint a Continuing Power of Attorney for Property and you become incapable of managing your property the court may, on any person’s application, appoint a guardian of property to make necessary decisions regarding your property on your behalf. When appointing a guardian of property the court will consider your wishes, if they can be ascertained, and the closeness of your relationship to the proposed guardian. In addition, the intended guardian will be required to disclose his or her financial circumstances, abilities and experience, and to present a formal management plan, first for approval by the Public Guardian and Trustee, and then by the court. The guardian will also be subject to regular accounting to the Public Guardian and Trustee and to the court, at least every 3 years, but sometimes as often as annually if required by a beneficiary, the Public Guardian and Trustee or the court. If no one makes an application to appoint a guardian of property and the Public Guardian and Trustee conducts an investigation and, as a result, has reasonable grounds to believe that you are incapable of managing your property and that prompt appointment of a guardian of property is necessary to prevent serious adverse effects, the Public Guardian and Trustee may apply to the court to become your temporary guardian of property. The process for appointing a court appointed guardian of property is more expensive and more cumbersome than appointing a Continuing Power of Attorney for Property, and it necessarily involves a government agency and oversight. A guardian of property has the power to do anything with your property that you can do, except make a Will. The value of a Continuing Power of Attorney for Property is that you can be certain about the choice of person who is to act as your attorney.