Guardianship is an important step in estate planning because it helps protect vulnerable people in your life if you die or become incapacitated.
A guardian is a court-approved legal designation that allows a guardian to make decisions for a person who is unable to act independently. Although commonly used to care for minor children, guardianship may apply to adults facing disability, incapacity, or similar circumstances.
For example, if you have minor children, you must designate a guardian. intentionThat person is the person you want to be legally responsible for your children in the event of your death. If a state court must appoint a guardian if the parents die without appointing a guardian there is.
Consider appointing a guardian for yourself if you have a health condition that may affect your ability to make decisions in the future.Adult guardianship is also known as guardianship in some states, but the terms may be legally different in others.
Advantages and disadvantages of the guardianship system
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All inclusive. A guardian can give a person the right to make financial, medical, and personal decisions for others.
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Peculiar. Having a designated guardian simplifies decision-making and reduces conflict.
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Restrictive. Guardianship can deprive a person of important rights and can be difficult to reverse.
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Indefinite length. Guardianship lasts as long as the person needs it. It can continue until the child reaches adulthood. Or, if a person is incapacitated, it can last decades or a lifetime.
A guardian’s primary responsibility is to make decisions that are in the best interest of other people and their assets. The decisions a guardian may make on behalf of another person will vary depending on the circumstances and conditions, but may include any of the following:
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Consent to treatment.
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Disclosure of Confidential Information.
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Consent to Education and Counseling Services.
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Determination of place of residence.
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Whether and when to sue.
How does guardianship work?
Guardianship can apply to a person, such as a minor child or an adult with a disability, or to someone’s property (although it is different from being a guardian). executor of man’s will).
child’s guardian
called dying without a will dying intestate, a state court may have to determine your child’s guardian. In many states, guardianship is automatically assigned to close relatives such as grandparents, aunts, uncles, and adult children.
However, in some states, such as North Carolina, anyone can ask the court to appoint a guardian. In Georgia, if a child is over a certain age (usually her 14), they may be able to choose their own guardian.
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adult guardianship
Adults with certain health conditions can nominate guardians in case they become unable to make their own decisions. However, legal guardianship takes away many rights, so it’s best to consider other options first.
You can nominate a guardian by drafting a Guardian Declaration. If you become incapacitated, there may be a court hearing to confirm your chosen guardian.
guardianship of property
A real estate or financial guardian only manages personal property. This role is usually played when a minor inherits property or other property that must be supervised until the child reaches adulthood.
The property guardian may be the same person as the personal guardian, or the two may be different persons.
guardianship
Guardianships are usually a last resort as they can permanently remove an individual’s rights. There are other ways to give people limited powers in certain situations.
These alternatives allow someone to make decisions in the best interests of the minor or incapacitated without assuming full legal guardianship.
Tax implications of the guardianship system
Being a legal guardian can have tax implications.
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Legal guardians may be required to notify the agency of their guardianship by filing an IRS Form 56.
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Parents can usually claim the people they care for as dependents. This means you may be eligible for certain tax benefits, such as the child tax credit. However, if the guardian is a child, the child must provide no more than half of their own financial support and live with you for at least half of the year. Under this credit, for full-time students, dependents are possible up to her 24th birthday..
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Guardians who do not qualify for the child tax credit may be able to claim a $500 tax credit for qualifying adult dependents. Usually these are adults who are financially dependent on you or who are permanently disabled..