Boutin Jones, Inc. Guardian of Person (GP) = Annual Report Kinds: - PowerPoint PPT Presentation

Donna L. Courville Attorney Boutin Jones, Inc.

 Guardian of Person (GP) = Annual Report  Kinds: ◦ Minor ◦ Disabled ◦ Elderly/Incapacitated  All require the same information in the report  Living, health, activities – improve/decline/same

 Michie • Knight • GP = Daughter • GP = Niece, CA • Ward = Mother • Ward = Aunt, Lubbock • All lived in Lubbock • GP saw Mother weekly • GP saw Aunt once a year • GP paid a monthly fee • GP approved and deferred annual fee

 Initial impression after basic facts?  Who is a better GP?  *Review the reports  Comments, thoughts, ideas?  Both were excellent Guardians of the Person  Both Wards had fabulous care and attention  Neither Ward improved

 Most Important and Most Difficult  Common Timeframe for Accounts ◦ Time Period: Date of Qualification ending 12 months later (i.e. April 1 to March 31) ◦ Time to File: March 31 + 30 days (may extend for 30 more) ◦ March 31 + 60 days = EXPIRED LETTERS OF GUARDIANSHIP ◦ Guardian can no longer act!

Amount: Description: Unknown Pending lawsuit for personal injury (value uncertain) $1,000 Pending pharmacy and medical bills per month $ 100 Cable bill per month $ 300 Utilities per month $ 400 Food per month $6,000 Ad valorem taxes/property taxes on home – annual $ 500 Estimated monthly income from interest and dividends only $1,000 Social security income benefits per month $ 800 IRA required minimum distribution per month $200,000 Vanguard IRA $300,000 House (Hockley County) $10,000 Automobile $200,000 1 st Rate Bank – Certificate of Deposit 1 st Rate Bank – Checking $15,000 $550,000 Various Stocks $5,000 Personal effects

Amount: Description: Unknown Pending lawsuit for personal injury (value uncertain) $1,000 Pending pharmacy and medical bills per month $ 100 Cable bill per month $ 300 Utilities per month $ 400 Food per month $6,000 Ad valorem taxes/property taxes on home – annual $ 500 Esti timat mated month thly y inc ncome ome from om intere terest st and div ivid idend nds only ly $1,000 Social security income benefits per month $ 800 IRA RA requi uire red mini nimum mum dis istr tribut ution on per r month th $200, 0,000 000 Vangu nguard rd IRA $300,000 House (Hockley County) $10,000 0,000 Auto tomobi mobile le st Rate $200, 0,000 000 1 st te Bank k – Cert rtif ific icate e of Depos osit st Rate $15,000 5,000 1 st te Bank – Check ecking ing $550, 0,000 000 Vario rious us Stocks ocks $5,000 ,000 Pers rson onal effe fect cts

Amount: Description: $20,000 0,000 Pend nding ng lawsu wsuit it for pers rson onal l injur ury (value ue uncertain certain) $1,000 Pending pharmacy and medical bills per month $ 100 Cable bill per month $ 300 Utilities per month $ 400 Food per month $6,000 Ad valorem taxes/property taxes on home – annual $ 500 Estimated monthly income from interest and dividends only $1,000 Social security income benefits per month $ 800 IRA required minimum distribution per month $200, 0,000 000 Vangu nguard rd IRA $300, 0,000 000 Hous use (Hockle Hockley Count nty) y) $10,000 0,000 Auto tomobi mobile le st Rate $200, 0,000 000 1 st te Bank k – Cert rtif ific icate e of Depos osit st Rate $15,000 5,000 1 st te Bank – Check ecking ing $550, 0,000 000 Vario rious us Stocks ocks $5,000 ,000 Pers rson onal effe fect cts

Personal Residence 1212 Privot Drive Levelland, Hockley County, Texas $300,000 1 st Rate Bank Certificate of Deposit #55789 Lubbock, Texas $200,000 1 st Rate Bank Checking Account # 25637 $ 15,000 Vanguard IRA #95678 $200,000 Google Stock – 500 shares CUSIP # 89456 @ $900/sh $450,000 Exxon/Mobile Stock – 500 shares CUSIP # 89456 @ $200/sh $100,000 2010 Ford F150 $ 10,000 Personal effects $ 5,000 Total Value $1,280,000

LIST OF CLAIMS Ward v. Defendant Cause No. 2011-14589 Lubbock County, Texas Pending claim for personal injury (estimated value) $20,000

Beginning Balance Checking Account #25637 $15,000 RECEIPTS: Estimated mo. income from interest & dividends only ($500 x 12 months) $6,000 Social security income benefits ($1,000 x 12 months) * not required $12,000 IRA - RMD ($800 x 12 months) $ 9,600 Subtotal Receipts $27,600

DISBURSEMENTS: Pharmacy & medical bills ($1,000 mo) $12,000 Cable bill ($100 mo) $1,200 Utilities ($300 mo) $3,600 Food ($400 mo) $4,800 Ad valorem taxes/property taxes on home $6,000 Insurance $1,500 Part-time in-home assistance $9,000 Accounting fees $500 Legal fees $1500 Subtotal Disbursements $40,100 Ending Balance $ 2,500

ASSETS ON HAND Residence $300,000 CD $200,000 Checking $ 2,500 IRA $200,000 Stock $550,000 Automobile $ 10,000 Personal effects $ 5,000 New Total: $1,267,500 REMINDER: Assets On Hand – should be compared to the Original Inventory in the Guardian’s first year Annual Account (and periodically thereafter).

ESTIMATE OF G UARDIAN’S FEE RECEIPTS: Estimated mo. income from interest & dividends only ($500 x 12 months) $6,000 Social security income benefits ($1,000 x 12 months) * not required $12,000 IRA - RMD ($800 x 12 months) $ 9,600 Subtotal Receipts $27,600 LESS SS $15,600 * 5%=$780 REMINDER: Social Security may be disclosed by the Guardian as a means to support the Ward, but no fee may be granted on this. TEC Section 1155.002

DISBURSEMENTS: Pharmacy & medical bills ($1,000 mo) $12,000 Cable bill ($100 mo) $1,200 Utilities ($300 mo) $3,600 Food ($400 mo) $4,800 Ad valorem taxes/property taxes on home $6,000 Insurance $1,500 Part-time in-home assistance $9,000 Accounting fees $500 Legal fees $1500 $40,100* 5%=$2,005 Subtotal Disbursements Guardian’s Fee $2,785

 Require thoughtful review and common sense  Calculations need to be checked  Verifi ification ation of funds on deposit = must be attached (and signed by third party financial institutions)  Confirmat irmatio ions ns of Safekeeping Agreements – Critical to maintain protection (in lieu of larger bond) – Annually make sure to match account numbers with Verifi ificati ations ons

 Minors: ◦ Expenditures without prior court approval IF the minor has at least 1 parent living who is responsible for care and support ◦ Impermissible investments – mutual funds (only permitted with Court Approval) ◦ Laptop? Car purchase? ◦ A parent must show financial hardship and Guardian must have a Court Order Approving

 Incapacitated Adult (or minor with no parent): ◦ Expenditures without prior court approval ◦ Expenditures EXCEEDING the Court Approved monthly allowance ◦ Impermissible investments – mutual funds (only permitted with Court Approval) ◦ Loans & other unusual expense not suited for Ward. ◦ “Scholarship?” – for grandchild

 Many ways to go wrong!  Phone a friend – Call TAC or a fellow Judge  Trust your gut instincts and question things  Lunch Topic: Share an odd or unusual Annual Account item that you have experienced at your table.

 Proper monitoring protects the Ward, the County and the Judge.  These represent the most significant tools you have to adequately supervise a guardianship.  Holding attorney rneys and gu guard rdian ans to high standards of timeliness and accountability is essential.  I’ll see you after lunch for some case studies!

Donna nna L. Courvil rville le Attorney rney Bo Boutin in Jones es, , Inc. 555 Capitol Mall, Suite 1500 Sacramento, CA 95814 Tel / 916.321.4444 Direct / 916.231.4084 Fax / 916.441.7597 dcourville@boutinjones.com www.boutinjones.com