A guardianship of the estate may be necessary when a child owns or becomes entitled to significant money, income, or property that requires protection and management. This may occur when a child receives an inheritance, life-insurance proceeds, a substantial financial gift, funds from a lawsuit or settlement, real property, or other valuable assets.
A guardian of the estate is a fiduciary and must manage the child’s property solely for the child’s benefit. Duties may include locating and safeguarding assets, maintaining separate financial accounts, investing funds prudently, keeping detailed records, obtaining court approval for certain transactions, and filing inventories and periodic accountings with the Probate Court. Depending upon the circumstances, the court may also require a bond or order that funds be held in a blocked account.
A guardianship of the estate does not necessarily give the guardian custody of the child. The court may appoint one person as guardian of the person and another as guardian of the estate. In other cases, the same individual may serve in both roles.
A child may need a guardian of the person without needing a guardian of the estate. Conversely, a child who lives safely with a parent may still need a guardian of the estate if the child receives substantial property that requires court-supervised management. Whether one or both forms of guardianship are necessary depends upon the child’s care arrangements, assets, and individual needs.