Guardianship Accounts

Can a guardian account have a beneficiary? And what happens if the guardian dies? Does the individual whose account it is have access to the funds if they have no signing authority? What is the bank's liable actions at this point?

All guardian accounts have a beneficiary - the person on whose behalf the account is established. You cannot designate an additional POD or ITF beneficiary. When the guardian can no longer serve for any reason, the court should be asked to appoint a new guardian. Only the guardian should have access to the account. Also be sure that you are clear on guardian vs. conservator and what that means in your state (as well as any special directives on the guardianship order from the court).

As to liability, it depends on a number of factors including what the bank has allowed to happen. The bank could be made to pay back the beneficiary for lost funds due to bank negligence.

A guardian has control over the funds and must report all of his receipts and disbursements to the court. He has no ownership interest and cannot name a beneficiary.

If the guardian dies, the court will appoint another. If the ward dies, the duly appointed personal representative of the decedent's estate will demand that the guardian deliver the assets.

The ward has no direct access to the funds; the ward cannot sign on the account.

Thank you both!

Bringing a old post to life!

A Guardian was appointed on behalf of existing customer. Instead of opening a new Guardianship account, the original account that the now beneficiary had was maintenance into a guardianship account. The original account had a POD. The POD was not removed when the account was maintenance.

Since fiduciary accounts cannot have a POD, and this one does, what will happen when the beneficiary dies? Will it go the POD or estate?

By allowing the account to be file maintenanced into a different form of ownership, your bank may have bought itself a law suit.
It has created an ambiguity which simply would not have existed had the individual's personal account been closed as it should have been when the guardian was appointed.

It's highly unlikely that the original POD beneficiary will be made aware of the situation, but if he is he will probably sue you for the funds. Rest assured, I would.