QUESTION
Can a guardian borrow from the estate he/she is in charge of?
Asked on Aug 06th, 2014 on Guardianship and Conservatorship - New Jersey
More details to this question:
My parents took over guardianship for my Aunt, who was hospitalized. She had no will, and at the time was deemed unable to appoint a power of attorney. There is almost 2 million dollars in the estate in cash and stocks. Are my parents able to "borrow" money from the 2 million? With legal papers drawn up, including payment dates, etc to repay the estate, like a loan?
1 ANSWER
2 Awards
It is definitely not good for the guardian of a pesron to "borrow" money. that would be a breach of fiduciary duty and would be considered self dealing. Even if the loan is repaid, and there is a normal interest rate, it is still a breach of duty to the guardian to do this. If the guardianship is in New Jersey,the guardians will have to provide an annual accounting of the money that will have to show the loan, and objections can be raised at that time.
Answered on Aug 07th, 2014 at 8:37 AM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship