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Guardianship and Financial Planning

Date. Guardianship and Financial Planning. CRN#202010-219257. Guardianship. Important Disclosures.

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Guardianship and Financial Planning

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  1. Date Guardianship and Financial Planning CRN#202010-219257

  2. Guardianship

  3. Important Disclosures The information provided is not written or intended as tax or legal advice. MassMutual, its subsidiaries, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

  4. Some Laws Vary By States A matter of state laws, regulations and practice The advice you receive should be state specific Seek local legal counsel to get the state specific information you’ll need

  5. Why is Guardianship Needed? Certain individuals, because of age or incapacity, are not legally able to handle their own affairs In response to this problem, the law allows guardianship to be established by the courts

  6. Some Laws Until child is 18 years old, the parent is legally responsible for their welfare Child is considered to be an adult at age 18, or (in some states) considered an adult if married before the age of 18 If the child is not able to make decisions in their own best interest, appointing a guardian is necessary * Laws regarding guardianship can vary from state to state. For that reason, you’ll want to check with local legal council to determine if any variations exist from this generic information

  7. About Guardianship… Upon petition by an interested person, a court may appoint a qualified individual or institution to handle the affairs of an incapacitated individual An individual for whom a guardianship is requested is referred to as the “protected person” Guardian vs. Conservator • Guardian - Responsible for the person and/or their property • Conservator - Responsible only for the management of the person’s property • Can be the same person or entity

  8. Appointing a Guardian Requires proof to the court that the person is not able to care for him/herself, or able to look after his/her own affairs Physician’s certification is required In some states, one or more state agencies may be involved All “interested parties” must be notified Court appoints someone to represent the individual during the court proceeding Called a “guardian ad litem” (GAL), they validate that the appointment is in the best interest of the individual Guardian’s powers in dealing with the person’s property are carefully restricted by law

  9. Types of Guardianship • Regular Guardian • Limited Guardian • Temporary Guardian

  10. Liability, Removal, and Termination of the Guardian • The guardian may be liable for any breaches of the duties which he owes to the protected person • The guardian may be removed by the court if they are not properly performing their duties, and a successor guardian will be appointed • If the guardianship was established when the protected person was under age 18*, or it generally terminates when the protected person reaches 18 years of age, or if married before age 18, or: • The protected person is no longer incapacitated, dies, or residence is changed to another state and a guardian has been appointed in that state • In the case of a guardian of the property, the estate is exhausted or the estate is less than some statutory minimum • If the court determines that the guardianship is no longer necessary for any other reason • On termination, the guardian is required to file an account and report of all activities • If the court accepts, the guardian will be discharged from all obligations *Subject to state specific rules

  11. Alternatives to Guardianship • Representative Payee • Specific Powers of Attorney • Health Care Representative • Durable Power of Attorney • Trust • Protective Proceedings • Parental Powers - Parents must be appointed guardians where significant amounts are involved

  12. 10 Basic Financial Steps

  13. Things to Keep In Mind • Find quality professionals to assist you • Remember that YOU are the expert about your dependent • Think “lifetime care” and “quality of life”

  14. 10 Basic Steps Step 1: Plan for the future needs of your dependent Step 2: Review beneficiary designations with family and close friends Step 3: Have a Family Meeting to Discuss Future Needs Step 4: Create a team Step 5: Get Additional Resource Support

  15. 10 Basic Steps – cont’d. Step 6: Learn about Government Benefits1 Step 7: Prepare a Last Will and Testament Step 8: Understand a Special Needs Trust Step 9: Guardianship / Conservatorship Step 10: The Letter of Intent 1. For more information regarding benefits provided Medicaid (Medi-CAL in California) visit www.medicaid.gov. Medicaid guidelines vary by state. Contact your local Medicaid office for details. For more information on SSI visit www.ssa.gov.

  16. How Do I Start The Planning Process? With Special Needs Professionals: • Legal Estate & Special Needs Attorneys • Financial Professional with a focus on Special Needs

  17. www.massmutual.com/specialneeds Thank you!

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