Welcome to Your Guardianship Journey: Navigating the Legal Landscape with Confidence
Embarking on a guardianship can feel daunting, but understanding the journey ahead can provide clarity and confidence. At our firm, we break down the process into clear, manageable stages, ensuring you are well-informed and prepared every step of the way. Here's a roadmap of what to expect:
Stage 01: Qualify as Guardian/Bond
After the Judgment of Incapacity is entered by the court, Mr. Serra must qualify as Guardian.
This typically involves fingerprinting and a background check, a requirement in NJ that applies to most guardians who are not the parents or spouse of the incapacitated person.
If the incapacitated person has significant assets, a bond will likely be required by the court. We will apply for the bond as part of the qualification process. Only after the bond is approved can Mr. Serra officially be given his Letters of Guardianship.
After everything is complete and approved by the court, we receive "Letters of Guardianship" otherwise known as Guardianship Certificates. This is the document that proves that Mr. Serra is the incapacitated persons guardian.
Stage 02: Open Guardianship Checking Account
A checking account will be opened for our use in paying the incapacitated person's bills including our invoices or commission in line with NJ Statutes and/or court Order.
We will move any of the incapacitated person's existing checking accounts into the guardianship checking account.
Stage 03: Determine Assets and Debts/File 90-Day Inventory
We will spend the first few weeks after being appointed determining what is the exact financial situation of the incapacitated person.
A guardianship application requires a "Certification of Assets" to be filed, so we use this as a starting point. However, sometimes the person filing the application has no knowledge of the assets and debts of the then-alleged incapacitated person. Therefore, we may have to spend some time looking into the matter.
We are then required to file an inventory 90 days after becoming the guardian, showing a complete picture of the incapacitated person's financial affairs, based on what we found.
Stage 04: Regular Care of Ward's Affairs
At this point, a number of tasks need to be completed either once or periodically.
Some of these tasks include:
- Putting a mail forwarding on all mail addressed to the incapacitated person, then changing the incapacitated person's address with all entities to our address.
- Retitling other financial accounts to include the guardian as custodian of the account.
- Regular bill pay (insurance, assisted living/nursing home, internet/cable, etc.) We try to put as many on autopay as possible to automate this.
- Participating in case meetings with the incapacitated person's care team, which happen regularly if the incapacitated person is living in an assisted living or nursing home facility.
- Handling medical affairs of the incapacitated person, such as ensuring doctor visits are scheduled and paid for as well as signing authorization forms when requested by the facilities for medical treatment. Oftentimes we engage a care manager such as Aging Advisors to assist with these day to day activities.
- If the incapacitated person becomes sick or is injured, we may discuss with the doctors the best available options and make decisions in line with what the wishes of the incapacitated person may be (if known, such as by a pre-existing living will) or in the incapacitated person's best interest if not known.
- Annual reporting to Social Security as to how benefits were used throughout the year.
- Annual reporting to the surrogate (more detail in stage 5) on the incapacitated person's wellbeing as well as an annual accounting.
- Filing taxes each year.
- Filing an application to sell the incapacitated person's real estate (if applicable - more detail in stage 6) and then handling the actual sale.
- Applying for Medicaid (if and when applicable, see stage 7).
- Sometimes a facility may no longer be appropriate for an incapacitated person, so we may need to research new facilities, such as when the person needs more care than an assisted living facility can provide and needs to move into a nursing home.
- Handling any other legal affairs of the incapacitated person, such as dealing with any existing litigation or closing any businesses owned by the person.
- Evaluating the incapacitated person's financial affairs (with an appropriate professional such as a financial advisor if indicated) to determine if investments should be changed, such as if more aggressive investments should be replaced with more conservative investments, or what other options exist to maximize the incapacitated person's estate.
- Dealing with any other issues as they arise.
We will keep any interested parties apprised of any important updates regarding the incapacitated person. We also need to report certain changes to the surrogate, such as if the person moves.
Stage 05: Annual Reports
Assuming Mr. Serra is the guardian of both person and estate, each year we must file the following documents:
- Report of wellbeing cover page
- Report of wellbeing
- A report signed by the incapacitated person's doctor
- An accounting
The reports are due within two weeks of the date of appointment as guardian each year (the date the Judgment of Incapacity was entered). So if the anniversary is April 1st, reports are due by mid April.
In some cases, if the incapacitated person has no money or is already on Medicaid, so all income is being paid to the facility directly, we may not be required to file an accounting. The court provides two types of accounting - EZ accounting form typically used for estates worth less than $1,000,000, and a comprehensive accounting for estates valued at more than $1,000,000. Guardians are required to use one of these forms so that all reports submitted are consistent and in the same format.
Stage 06: Apply to Sell Real Estate (If Applicable)
If the incapacitated person owns a home, then we must file an application with the court to sell the home. This application involves obtaining two appraisals to show the current market value, then filing a complaint with the court. We will provide more information later if this applies to you.
Stage 07: Medicaid Application (If Applicable)
If the incapacitated person spends down most of his/her estate, then we will need to apply for Medicaid. We will provide you with more information if and when this happens in your case.
Stage 08: Discharge
Upon the death of the incapacitated person, we must notify the court. Sometimes courts require an application to discharge the guardian, but often they simply accept the death certificate.
We will need to file a final accounting with the court as well as provide an accounting to the executor or administrator of the incapacitated person's estate. The executor/administrator will need to sign a Refunding Bond and Release acknowledging how much money she is receiving from us so that we can cancel the surety bond.
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By breaking down the guardianship process into these stages, we strive to provide transparency and support, ensuring you are never in the dark about what comes next. Our goal is to navigate this journey together, with your interests at the forefront.