How to Manage as Someone’s New Guardian of the Estate

Being appointed guardian of the estate for a loved one is a serious responsibility. It means a court has decided that someone you care about is no longer able to manage their own financial affairs, and that you are the right person to do it for them. 

If you have recently been appointed to this role in Illinois, you may be feeling a mix of emotions. This might include concern for your loved one, a genuine desire to do the right thing, and perhaps some uncertainty about exactly what is expected of you and whether you can do it right.

That uncertainty is completely normal. Guardianship of the estate is a legal role with specific obligations, and it needs to be handled correctly. This is why working with a Naperville estate planning attorney with experience in guardianship matters can protect both your loved one and yourself.

What Does a Guardian of the Estate Actually Do in Illinois?

A guardian of the estate is responsible for managing the financial assets and affairs of a person the court has determined lacks the ability to do so on their own. That person is called the “ward.” Your role is distinct from that of a guardian of the person, who handles decisions about living arrangements, medical care, and daily wellbeing. As guardian of the estate, your focus is on money, property, and financial obligations.

Under 755 ILCS 5/11a-18, Illinois law outlines the core duties of a guardian of the estate. In practical terms, those duties include the following.

Understanding the Ward’s Assets

One of your first responsibilities after appointment is to identify and document everything the ward owns. This includes bank accounts, real estate, investments, personal property, vehicles, and any other assets. You are required to file an inventory with the court, typically within 60 days of your appointment.

Managing and Protecting Assets

You are responsible for safeguarding the ward’s assets from loss, waste, or mismanagement. That means making wise decisions about how money is held and invested, keeping accurate records of all transactions, and avoiding any action that puts the estate at unnecessary risk.

Paying the Ward’s Bills and Expenses

You are responsible for ensuring that the ward’s legitimate expenses are paid from estate funds. This includes housing costs, medical bills, insurance premiums, and any other ongoing financial obligations. You should keep detailed records of every payment made.

Filing Annual Accountings with the Court

Illinois law requires guardians of the estate to file regular accountings with the court showing all income received, all expenses paid, and the current value of the estate. This is one of the most important and time-sensitive obligations you have. Not filing on time can result in court sanctions.

What Is My Fiduciary Duty as Guardian of the Estate?

The term “fiduciary duty” comes up frequently in guardianship, so you should make sure you understand exactly what it means. A fiduciary is someone who is legally required to act in the best interests of another person, putting that person’s interests ahead of their own. As guardian of the estate, you are a fiduciary for your ward.

In practical terms, this means every financial decision you make must be made for the ward’s benefit, not yours. It means you cannot borrow from the estate, use estate funds for personal expenses, or make financial decisions that benefit you or other family members at the ward’s expense. Even if your intentions are good, actions that cross these lines can expose you to personal legal liability.

Some of the most common fiduciary mistakes guardians make include:

• Mixing personal funds with estate funds: Always keep the ward’s money in separate accounts in your name as guardian, never mixed with your own.
• Making gifts or loans from the estate without court approval: Even if the ward would have wanted to make a gift to a family member, you generally cannot do so without prior court authorization.
• Failing to keep records: Sloppy or incomplete recordkeeping is one of the most common reasons guardians run into trouble with the court. Document everything.
• Making high-risk investments: Illinois law expects guardians to apply a prudent investor standard, meaning you invest with care, caution, and the ward’s long-term needs in mind. Speculative investments are generally not appropriate.
• Delaying the filing of required accountings: If you are struggling to meet a deadline, communicate with your attorney rather than simply missing the filing.

The court doesn’t expect absolute perfection from guardians of the estate, but you will be held to a high and specific legal standard. If you have any questions about whether something is legal or ethical, talk to an attorney before you do it. 

What Happens If a Guardian of the Estate Makes a Mistake?

If a court finds that a guardian of the estate has mismanaged estate assets, failed to file required accountings, or breached their fiduciary duty in any way, the consequences can be serious. The court can require the guardian to personally reimburse the estate for any losses. In more serious cases, the court can remove the guardian entirely and appoint someone else.

This is not meant to be alarming. Most people who take on this role do so out of genuine love and concern for a family member. However, mistakes made even with the best intentions can still create legal and financial consequences if they run afoul of what the law requires.

Should You Work With an Attorney as Guardian of the Estate?

An attorney who understands Illinois guardianship law can help you:

• Set up the estate correctly
• Make sure your inventory and accountings are filed on time and in the right format
• Give you advice before you make significant financial decisions
• Represent you if any issues come up

The cost of getting good legal advice upfront is almost always far less than the cost of fixing a problem after it has already developed. 

Call a Naperville Estate Planning and Guardianship Attorney at Gierach Law Firm Today

If you have been appointed guardian of the estate for a loved one in Illinois and want to make sure you are fulfilling your responsibilities, our Naperville guardianship lawyer at Gierach Law Firm is ready to help. Call us today at 630-756-1160 to learn what we can do for you.