In Texas, guardianship is the legal process where one person is granted legal control over another person’s affairs. There are broadly two types of guardianships: guardianship of the person and guardianship of the estate. A guardianship of the person is to be granted control over the decision-making authority of another, usually to make medical, residential, or educational decisions. Guardianship of the estate is getting control over someone’s financial affairs. Often, a guardianship of the person and guardianship of the estate are created in the same proceeding and the same person can be appointed as both types of guardians.
The most common circumstances where guardianship is created are:
- A person becomes incapacitated, usually due to age-related dementia or strokes, and another family member or interested person needs to be able to gain access to their loved one’s financial assets so they can pay that person’s bills and probably admit them to a residential care facility.
- A child with an intellectual disability turns 18, at which point their parent no longer has legal control without an additional court order.
- A minor is gifted property, usually by an inheritance. A minor does not have the legal capacity to open a bank account, and if insurance proceeds or other assets are left directly to the minor, without some sort of trust or other mechanism, then a guardian will need to be appointed to handle and receive that gift to the minor.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
