MAKING SCHOOL GUARDIANSHIPS LESS BURDENSOME

May 20, 2013 § Leave a comment

Guardianships of the person are a pretty common phenomenon in these parts, as they are, I am sure, wherever you might be. I call them “school guadianships,” because that’s what they traditionally were used for — to get children into particular schools, ordinarily via grandparents — within the tolerance of the school district involved.

As it stands now, MCA 93-13-38 requires a guardianship of the person to observe all of the same formalities as an estate, including notice to creditors, probate of claims, accountings, and so on, even though there is no estate whatsoever.

That’s going to change, effective July 1, 2013. HB 725, sheparded through by Rep. Greg Snowden, changed the statute to provide that:

“The requirements in a guardianship of the person are modified to the extent that notice to creditors is not required, reports will be made only as often as the court requires, and the guardianship may be closed without the need for any accounting unless otherwise determined by the court. Any assets that are received shall be reported immediately and at that point the guardianship shall be deemed to be a guardianship of the personand estate and all requirements for guardianship of the person and estate shall be followed.”

This is a welcome clarification and simplification. In this district we have been requiring reports every other year. The report is a simple, two-sentence statement that: (1) the guardianship is still necessary; and (2) no assets have come into the guardianship. We have found that eventually the ward reaches majority, and the lawyer files a report asking to close as no longer necessary. When I took office I found guardianships of the person that were as much as 25 years old that had never been closed. There’s no good reason for that. I asked Rep. Snowden to address this, and he did an effective job.

We have significant number of these, some of which should probably be converted to Special General Guardianships after those become effective July 1, 2013. Despite my “school guardianship” label, most nowadays involve grandparents taking grandchildren to raise, and needing a guardianship to obtain medical care, enroll in school, etc.

THE YOKE OF PROBATE

October 10, 2011 § 1 Comment

It looks like easy money. Grandma is sitting in your office with a fistful of greenbacks, asking you to open a guardianship so that she can get grandson into the county school. Momma is agreeable, daddy is in prison and will sign whatever you send him, and the child needs to get into school.

Before you file those papers and track down your chancellor, consider:

  • When you enter your appearance, you are responsible as attorney for the guardianship forever, or until the judge lets you out, or until the guardianship is closed, whichever occurs first.
  • There will be an accounting, or at least a reporting, requirement, for which you as counsel will be held responsible.
  • Your compensation will be fixed by the chancellor, and it may not be as much as you would like to charge.
  • You will be responsible to report to the court any misfeasance, malfeasance or neglect of duty by the fiduciary.

I encourage you to read UCCR 6.01 and 6.02 before you file that petition to open the guardianship. Your duty and liability as an attorney in a simple guardianship of the person is every bit as great as it is in a guardianship where the ward has thousands of dollars in the bank.

We regularly send out orders for lawyers to bring their accounts current in all probate matters, including guardianships of the person only. In guardianships of the person, we require a report at least every other year that (a) the guardianship continues to be necessary due to the age or circumstance of the ward, and (b) that no assets have come to the ward since the last report. It is not uncommon for lawyers to call and have some problem with that requirement. Some customary complaints:

  •  “I wasn’t paid enough to continue to do work in this case.” UCCR 6.01 expressly states that “When an attorney has once appeared for a fiduciary, in any respect, he may withdraw only with the consent of the Chancellor, after notice to the Chancellor, after notice to the client.” That rule also requires the fiduciary to be represented by a lawyer at all times. This means that once you appear, you are in it until someone takes your place or the matter is finally closed.
  • “I can’t find my fiduciary.” You are responsible to keep up with the guardian and his or her activities so as to advise the court as required by UCCR 6.02. You have some liability to the ward if the fiduciary receives assets of the ward and squanders them.
  • “This was only a guardianship for school purposes; why do we have to jump through all these hoops?” Because the law does not lower the protective bar for benefit of a ward “merely” because this is a guardianship of the person, and you, as attorney for the fiduciary, have a professional, legal, ethical and equitable duty to the ficuciary, the court and the ward.

I am not suggesting that you not file that guardianship action. I am suggesting that you read the rules and understand exactly what you and your client are taking on when you shoulder the yoke of probate.

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