Tuesday, May 31, 2011

Guardianship and Trusteeship - What are the Differences?

When it comes time to minding your parental matters, you may do so voluntarily or by legal appointment as either guardian or trustee, or both. While I am not a lawyer, I know and understand that these two terms can be easily confused. Here is a nutshell definition of each:

A guardian will become responsible for a dependent adult's lifestyle choices (e.g. where he/she lives and who can care for him her).

A trustee will become responsible for a dependent adult's financial matters (e.g. collecting income tax slips, making investment decisions and accounting for purchases made with using the dependent adult's own money).

As either a guardian or trustee, you will receive official court-issued orders. You will need to distribute these orders to others for them to retain in their files - for instance, such as one to your parent's doctor's office, your parent's bank, your parent's long-term care centre and so on.

Guardianship and trusteeship are very different levels of care so it is vital to differentiate between them. You may learn at a wrong time that you do not have the authority to make a key decision.

As a guardian or trustee, you must also be completely trustworthy, ethical and hold integrity.. Your parents will frequently appoint their own trustees (commonly, the oldest child); however, such decisions can be overturned if necessary. Please keep in mind that overturning a trusteeship can be a complicated - and, potentially, a very messy matter so proceed with this decision only when there is no other choice.

To learn more about guardianship and/or trusteeship, please consult with a lawyer. You may also want to approach local senior's associations for help. My family discovered a senior's association in our city which featured a person on-staff who guided us along the way. With this "desk method", the family was responsible for serving the documents and so on, but the cost-savings were significant.

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