If you are a court-appointed guardian of a disabled or elderly adult in North Carolina, there are ongoing, annual obligations that you must fulfill. For example, a guardian must decide where the individual will live, authorize any medical care, and often manage the individual’s finances. In addition, a guardian must file status reports and accountings with the North Carolina courts each year. Let’s look at precisely what a guardian does and what kinds of proof you must present to the court each year.
Court Obligations Vary
There are different types of guardianship, so the paperwork you will need to show the court can vary. If you are a general guardian, you care for the person and their estate and finances. As a financial guardian, you are only responsible for the estate and finances. If you are only a guardian of the person, then your duties are for the individual’s daily and medical care while someone else handles the financial aspects of their estate.
Funds for Care
As a guardian, you do not support the individual financially with your own resources. Their estate provides the funds you need to carry out your duties as a guardian. You are also not responsible for their debts using your own financial capabilities. Their estate pays for the care you give.
As a guardian, if you spend your own money on reasonable expenses for the ward, you must keep good records to claim a reimbursement from the ward’s estate. In some cases, the clerk of court may give you a commission from the ward’s estate for your services as a general guardian.
Maintaining Bond
Guardians who manage finances must be bonded and give sufficient surety to handle the individual’s property. Handling the ward’s property means that you will need to work with an insurance company to get an initial bond. Then, each year, you must renew the bond.
Failure to maintain the bond may result in your removal as the acting guardian.
Filing Annual Accounts
Each year, you must file a report called an “Account” with the Court. This report must detail all receipts and disbursements of the guardian’s financial property during that year. Your statement of Account also includes any property that was bought or sold, medical expenses, and other costs of living.
Every time there is a transaction involving any sum of the ward’s money, you will need to keep organized records. Failing to do so can cause a disorganized report without the clarity the court needs. The court is responsible for making sure that an elderly or disabled person’s guardian is suitable. The annual account is one way that the court measures your ability as a guardian.
If you fail to file an Account on time, the court can charge you with contempt. Charges of contempt can lead to jail time.
Maintaining Proper Financial Records
To substantiate the information on the Account, you must maintain proper financial records. Accurate records include:
- Receipts
- Copies of bank statements
- Check images
- Sufficient proof for each receipt
- Proof explaining each disbursement made from the guardianship estate
For example, if you use the ward’s money to purchase groceries for them, you will want to keep your receipt to use for the annual account. In addition, any medical receipts or any kind of expense that you use their money for, you must record.
Guardianship Responsibility
As a guardian, you are responsible for accurate, organized records. You must ensure that you report all financial activity on the yearly Account report. Not keeping good records can lead to losing your position as guardian. If you do not turn in an Accounting, you can even spend time in jail. Ensure that you can serve as a responsible and organized guardian if you choose to take on such a position.
You do have an enormous responsibility as a guardian. However, the courts also recognize that it is crucial to let the ward also make decisions as often as possible. You only want to make decisions when the ward struggles in an area. You are not there to take away all of their rights as an adult.
Some disabled adults just need a bit of help with paying bills and cooking, while others may need round-the-clock care. Your job as a guardian is to ensure that the ward has all they need to live a full life.
We Can Help
If you need help with any Accounting filings or any type of financial or legal issue related to your role as guardian, contact us at Hopler, Wilms, & Hanna. Our experienced Guardianship attorneys can give as little or as much help as you need. We offer as-needed consultations on specific issues or fully cover all aspects of your accounting and filings as a guardian. In addition, we help you stay on top of all you are responsible for as you try to understand and learn about the ongoing requirements.