Financial Responsibilities Of Guardians In New Jersey

When an adult is placed into a guardianship, it is the guardian’s job to put their best interests first and to take care of their well-being. This could be due to illness, disability, mental disorders, intellectual disabilities, or even issues like chronic drug or alcohol use. The guardian provides the individual with the assistance and guidance they need in many areas of their life, including the financial responsibilities that they still hold.

At Weisberg & Klauber, LLC, our attorneys have decades of combined experience, and we can handle any aspect of a guardianship proceeding in New Jersey. We have an educational background to go with our legal experience, and our lawyers can answer any pressing questions or resolve disputes. When you need dedicated and knowledgeable legal assistance in New Jersey, give us a call.

What Financial Responsibilities Do Guardians Have?

A guardian is responsible for the financial responsibilities placed on the person under their charge. This person may lack the ability to take important steps on their own, so the guardian does so for them and ensures that all financial obligations are met. Below are a few examples:

Managing Assets

If the person already owns financial assets, such as savings accounts or investments, then the guardian may be responsible for overseeing them. Their job is to ensure that these are used properly and that that use benefits the person who has been placed in the guardianship. Examples could be paying rent, paying credit card bills, addressing medical costs and much more. The guardian may need to transfer money between accounts or accept payments or benefits.

Budgeting

The guardian should create a budget that is appropriate for the situation, considering things like medical bills, living expenses, necessary costs and more. They can take the person’s unique condition into account, creating a budget so that their income and assets can be appropriately used to provide a stable living situation. A budget is crucial, especially if the person is on a fixed income.

Filing Taxes

Someone who is under a guardianship may still need to pay taxes, such as income taxes or property taxes. The guardian can help with gathering documentation, filing tax returns, ensuring compliance, accepting tax refunds, communicating with the IRS and addressing other such matters.

Applying For Benefits

Many people who are under guardianship may qualify for certain benefits, such as Social Security Income (SSI), Social Security Disability Insurance (SSDI), Medicaid or Medicare. The guardian can help them apply for benefits, set up accounts to receive the benefits, cash checks, distribute funds and the like.

Legal Compliance

If there are any court orders that have been handed down, the guardian can help to ensure that all laws, regulations and other requirements are met. They can also address the court, file paperwork, present the person’s case and take other key steps.

Reporting

In some cases, reports are required, and the guardian should submit them to the court. These may detail how the person’s assets are being used, what funds they have, what benefits they qualify for, what medical conditions have developed and much more.

What Financial Responsibilities Do Guardians Not Have?

One important thing to note is that the guardian is not financially responsible for the person who is under their care. On a personal level, they are not responsible for meeting this person‘s needs, providing income, paying debts, paying taxes or anything else.

Their job is not to step into this role themselves, as a provider, but simply to take charge of the protected person‘s own affairs, using their own funds and assets to meet any financial needs. But if that person has outstanding debt or fails to pay off everything that they owe, the guardian does not take on that responsibility themselves. They are in more of a leadership position, taking action on someone else’s behalf.

Call For A Consultation To Discuss Your Situation

When setting up a guardianship, administering one or considering the details, it can help to work with an experienced law firm. Just use the online contact form or give us a call today at 732-686-6440 to set up your initial consultation.