	Adult Guardianship

Introduction

Administration and Management

Service Delivery Administration Standards

Service Standards

PA-AG 9: Guardian of the Estate

The individual’s estate is managed in an open and transparent manner that:

is consistent with service goals and the individual’s values;
encourages the individual’s involvement to the greatest extent possible;
protects the individual’s assets; and
maintains or improves the individual’s financial standing as appropriate.

Note: The terminology used may vary; however, any agency court-ordered to manage an individual’s finances is expected to meet the standards outlined in this section. That includes guardians of the destitute who may only be responsible for managing the individual’s public benefits. Guardian of the estate may also be responsible for managing the individual’s stocks and bonds, paying bills, income and property taxes, real estate, insurance, and maintaining eligibility for public benefits.

NA The agency only acts as guardian of the person.

PA-AG 9.01

The individual participates in estate planning and financial decision-making to the greatest extent possible given his or her assessed capacity for decision-making and subject to state law and court order.

PA-AG 9.02

Upon initiation of guardianship, a thorough inventory of the individual’s assets is conducted to determine:

the type and value of the individual’s assets;
how assets are held, owned or managed;
areas of risk or potential loss; and
what assets should be maintained.

Update: Revised Interpretation - 06/01/10

PA-AG 9.02 Original Interpretation:

Assets include real estate such as residential or commercial property and personal properties such as investments, insurance, vehicles and other valuables. Assets may also include Special Needs Trusts that were established on the individual’s behalf.

Interpretation: Assets include real estate such as residential or commercial property and personal properties such as investments, insurance, vehicles and other valuables.

PA-AG 9.03

The guardian of the estate communicates regularly with the guardian of the person, or any other health care decision-maker, to ensure the financial plan is consistent with service goals.

Interpretation: This may include communication within the agency or with outside providers. Some organizations have successfully implemented a checklist system, or similar protocol, for ensuring everyone involved with a particular case is aware of decisions made or work done on behalf of the individual.

PA-AG 9.04

Financial information is available to the individual upon request, as appropriate to their assessed capacity to handle such information and in accordance with state law or the court order.

PA-AG 9.05

The individual’s income is used to meet his or her identified needs and can include:

food, clothing, shelter, and utilities;
health care and prescriptions;
home care, aide services, and housekeeping;
transportation;
insurance;
legal or other professional fees, with court approval;
pre-paid burial arrangements;
social and recreational needs; and
savings.

Update: Revised Standard - 06/01/10

PA-AG 9.05 Original Standard:

The individual’s income is used to meet his or her identified needs and can include:

food, clothing, shelter, and utilities;
health care and prescriptions;
home care, aide services, and housekeeping;
transportation;
insurance;
legal fees;
pre-paid burial arrangements;
social and recreational needs; and
savings.

PA-AG 9.06

The agency has procedures governing the management of funds that protect the assets of individuals, including:

an accounting system that accurately tracks all transactions;
authorization and processing of disbursements;
regular, internal audit of client accounts;
an external audit of client accounts conducted at least once every three years;
segregation of duties regarding cash disbursements;
tracking system to notify guardians of key due dates;
separate accounts for each individual; and
managing funds in accordance with the Prudent Investor Rule.

Update: Revised Standard, Revised First and Second Interpretations - 06/01/10

PA-AG 9.06 Original Standard and First and Second Interpretations:

The agency has internal procedures governing the management of funds that protect the assets of service recipients, including:

an accounting system that accurately tracks all transactions;
authorization and processing of disbursements;
regular, internal audit of client accounts;
segregation of duties regarding cash disbursements;
tracking system to notify guardians of key due dates; and
separate accounts for each service recipient.

Interpretation: Authorities that may require regular accounting reports include the courts, the Department of Veterans Affairs, and the Social Security Administration when the guardian is responsible for managing the individual’s Social Security payments. A growing number of social service organizations are being recruited by the Social Security Administration to manage payments to beneficiaries who lack the capacity to make financial decisions.

Interpretation: Key due dates can include billing due dates, tax deadlines, legal notifications, contractual deadlines or expirations, expiration dates for public benefits; and due dates for submitting accounting reports to regulatory bodies.

Interpretation: Authorities that may require regular accounting reports include the courts, the Department of Veterans Affairs, and the Social Security Administration when the guardian has been appointed by the Social Security Admininstration to serve as a representative payee who manages the individual's Social Security payments. A growing number of social service agencies are being appointed by the Social Security Administration to serve as representative payees for beneficiaries who lack the capacity to make financial decisions.

Interpretation: Money can be pooled into one bank account when accounting software has the capacity to manage each account separately, provide adequate documentation of income and expenditures, protect the holdings of each individual, and complies with all applicable laws and contractual obligations.

Research Note: The Social Security Administration recommends that a record for all disbursements be retained for at least two years as documentation of how money is being spent.

PA-AG 9.07

Guardianship workers are familiar with state and federal regulations governing eligibility for public benefits, and take appropriate steps to maintain the individual’s eligibility.

Update: Revised Interpretation - 06/01/10

PA-AG 9.07 Original Interpretation:

Guardianship workers should be aware of transactions or assistance from family members that may disqualify the individual from continuing to receive public benefits, and be aware of tools that can be used to spend down assets to within limits, such as the establishment of a special needs trust. Examples of assistance from family members that may disqualify beneficiaries from continuing to receive benefits can include rent payment, groceries, or cash. However, family members may be able to provide payments directly to vendors for items other than food or housing such as phone or cable. Specific allowances will vary by state.

Interpretation: Guardianship workers should be aware of income and resource limitations and transactions or assistance from family members that may disqualify the individual from continuing to receive public benefits. They should also be aware of tools that can be used to spend down assets to within limits, such as the establishment of a special needs trust, or pre-payment of funeral or burial plans. Examples of assistance from family members that may disqualify beneficiaries from continuing to receive benefits can include rent payment, groceries, or cash. However, family members may be able to provide payments directly to vendors for items other than food or housing such as phone or cable. Specific allowances will vary by state.

PA-AG 9.08

This standard has been deleted. See PA-AG 5.09.

Update: Deleted Standard - 06/01/10

PA-AG 5.09 replaces PA-AG 9.08

PA-AG 9.08 Original Standard:

As permitted by law or court order, pre-paid burial arrangements are made that:

respect the individual's expressed desires, culture, heritage, and belief systems; and
involve the family to the greatest extent possible and appropriate.

Interpretation: Involvement of the family should include investigating the existence of family plots.

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	PURPOSE: Individuals who receive guardianship services maintain a level of independence and self-determination appropriate to their functional capacity, and are at minimized risk of abuse, neglect, or exploitation.

RELATED FILES


	SERVICE One or more organization-operated programs or activities that have a common general objective and deploy the organization's material and human resources in a planned and systematic manner. An organization that publicly promotes or identifies itself in writing as offering a service, is licensed to deliver a service, assigns personnel and/or space to a service, or allocates financial resources to a service is considered to offer that service.


	SERVICE GOALS Broad, issue-oriented statements that reflect the realistic achievements to be accomplished in the short or long term. Goals are achieved through the accomplishment of specific quantifiable objectives.


	ELIGIBILITY The degree to which an individual, family, group, or community meets the specific criteria and qualifications required to receive goods, benefits, or services.


	PLANNING The process of specifying objectives, evaluating the means for their achievement, and exercising deliberate decision making about appropriate courses of action.


	FINANCIAL PLAN A plan that addresses how the organization will meet its long-term financial goals, including those goals and objectives established in the long- and short-term plans. The financial plan is distinct from the annual budget and should speak to how the organization will fund future expansion, identify possible funding sources, and describe how it will address potential financial risks. The financial plan should not include a detailed list of funding sources and expenses, as these items would be included in the annual budget.


	CASE A general term used to designate clients (including individuals, families, and groups) served by an organization for purposes of monitoring the provision of services. A foster care case is generally based on the placement of an individual child, although casework for the child may include services to the child's family. A child protective services case is based on an entire family household if a family assessment model is used; otherwise a case is defined as a child.


	ADMINISTRATION The personnel responsible for management functions of the organization, including fiscal management, human resources, and service delivery. Such personnel determine organizational goals, acquire and allocate resources to carry out a program, coordinate activities toward goal achievement, and monitor, evaluate, and make needed changes in processes and procedures to improve the likelihood of goal achievement. The term is synonymously used with MANAGEMENT.