4110  Responsibilities of the Guardianship Specialist (GS) as Guardian of the Estate and Representative Payee

Policy: The GS shall perform financial responsibilities specifically designated for completion by the GS in this section of the handbook in addition to duties identified throughout the Guardianship Handbook.

Required Procedures – The GS:

As Guardian of Estate

• secures all real and personal property and protects such property from loss or damage;
• insures property when adequate funds exist and notifies the court when property cannot be insured, or, depending on the court's practice, files a motion to not insure the property;
• pays taxes and applies for appropriate tax exemptions;
• inventories property of the estate;
• sells property as the circumstances and conditions of the ward require;
• ensures the ward receives income and benefits to which he or she is entitled;
• establishes and/or monitors financial accounts including trust accounts;
• arranges for payment of bills, debts and claims;
• scans and attaches copies of invoices, bills, statements and receipts to the GOLD case record and notifies the GA when the information is available for viewing;
• furnishes asset facts to the GA for entry into the GOLD case record within 10 calendar days of receiving, discovering or obtaining the information;
• reviews and monitors the financial GOLD case record and reviews the completed financial reports and reconciled bank and trust statements;
• accounts to the court for activity pertaining to estate management;
• monitors accounts to verify the bank balances are kept within limitations to ensure eligibility for Medicaid and other benefits, consults with the guardianship supervisor if balances exceed $2000, documents any waivers received and follows supervisor's instructions;
• develops an investment plan and ensures the ward's funds are invested, where appropriate;
• ensures ward's accounts are not subject to service charges as far as possible;
• ensures appropriate closure of the estate upon termination of the guardianship;
• documents estate management and representative payee activities and supervisor/attorney consultations; and
• maintains the original (official) financial paper case file.

As Representative Payee

• ensures the ward receives income and benefits to which he or she is entitled;
• establishes and/or monitors financial accounts including trust accounts;
• arranges for payment of bills;
• accounts to the overseeing agency for use of funds;
• monitors bank balances on accounts for compliance with program requirements;
• furnishes copies of invoices, bills, statements and receipts to the GA;
• furnishes asset information to the GA;
• reviews and monitors the financial GOLD case record and reviews the completed financial reports and reconciled bank and trust statements;
• ensures ward's accounts are not subject to service charges as far as possible; and
• maintains the original (official) financial paper case file.

Required Procedures – The guardianship supervisor:

• verifies the GS maintains the financial resources within the established limits;
• ensures the GS furnishes copies of bills, invoices and statements and other requested information to the GA and communicates with the GA and the GS to resolve financial matters;
• holds the GS accountable for furnishing the GA asset information for entry into the GOLD financial case record within 10 calendar days of receiving, discovering or obtaining the information;
• ensures the GS resolves legal issues regarding financial matters (i.e. Letters of Guardianship, Inventories, etc.);
• reviews the financial records as part of the on-going regional quality assurance activities including:
• develops action plans and follow-up activities and ensures the GS completes the plans and activities accordingly; and
• reports major discrepancies (e.g. missing funds, misappropriations, etc.) or problems in the financial case records to program management staff (e.g., ROM, UMPPD, UMOCS, and SD) via e-mail within 24 hours of identifying discrepancy;
• consults with and ensures the GS works with the regional guardianship attorney to resolve outstanding related issues;
• completes required reports within established timeframes; and
• ensures actions taken (e.g., waivers, approvals, etc.) are documented.

Discussion and Relevant Information. As the Guardian of the Estate and as a representative payee, it is a joint responsibility of the guardianship supervisor and the GS to ensure estate and financial matters for their assigned wards are completed as required by statute and in accordance with policies. It is recommended the supervisor and the GS staff each case quarterly or semi-annually when DADS is guardian of the estate or representative payee to identify and address outstanding financial concerns. Although the GS may request and receive the assistance of other DADS guardianship staff (i.e., the GA, the AA, or another GS), it remains the primary responsibility of the GS to accomplish these tasks. It is the primary responsibility of the guardianship supervisor to ensure tasks are accomplished, any discrepancies are resolved, and all outstanding legal issues are addressed.

If the financial resources are large or the estate is complex, the supervisor may elect to staff the cases more frequently. All staffings should be documented as a supervisory consultation in the GOLD case record. The supervisor may request the assigned GA to participate in staffings. If the GS requests the assistance of another staff member, the GS follows up to ensure assignments are completed as requested and pertinent matters are addressed with the supervisor.

If the GA or AA is asked to assist the GS with a financial task and receives supervisor permission to do so, the requested individual is responsible for completing the task or notifying the supervisor and the GS making the request of any constraint in completing the task. They are also responsible for notifying the GS when the task has been completed. The responsibility for the GOLD financial case record is a shared responsibility of the GS and the GA. The GS must check the assets entered into the record to ensure the correct information is in the file. If the information furnished to the GA is not entered into the record, the GS must notify the GA, copy the guardianship supervisor and the information systems manager. The GS is responsible to check both the GOLD case record and the paper case file to ensure the correct information for all financial transactions is in the files.

References:
Section 4160, Financial Case Record Time Frames
Section 6222, Financial Paper Case Record

4120  Responsibilities of the Guardianship Accountant (GA)

Policy: The GA shall perform responsibilities specifically designated for his or her completion as found in this and other sections of the handbook.

• The GA shall, upon the written request of the GS or the guardianship supervisor and with the approval of the GA supervisor, assist in the completion of financial related tasks and other authorized duties as assigned.

Required Procedures – The GA:

• enters the asset information furnished by the GS into the GOLD system unless the GS indicates in writing via email to the GA and guardianship supervisor he or she assumes the responsibility. Asset information includes:
• values of bank accounts;
• inventories;
• real and personal property;
• values of insurance and burial policies; and
• other such information into the GOLD case record;
• records and reconciles ward's financial information using GOLD to include (but not limited to) bank statements, records of income and expenditures, checkbook registers;
• scans and attaches financial statements received directly by the GA (e.g., bank statements, savings and loan statements, etc.) to the GOLD case record;
• notifies the GS and the guardianship supervisor by email when scanned financial statements are available in GOLD and forwards the statements to the supervisor for delivery to the GS;
• verifies other pertinent financial related information (e.g., bids, inventories, tax statements, etc.) has been scanned and attached to the GOLD case record;
• promptly notifies the GS, the guardianship supervisor and the GA supervisor in writing via email when there is missing information such as receipts, invoices, statements, etc. which prevents the financial records from being accurately reconciled;
• requests (in writing via email) supporting documentation from the GS and copies the guardianship supervisor and GA supervisor if information is missing or incomplete, and requests the information be furnished within seven calendar days;
• notifies the guardianship supervisor and the GA supervisor in writing if the information is not submitted within the time frame requested or if the GS fails to respond to the written request;
• makes a second request using email to the guardianship supervisor and copies the GA supervisor and the ROM, if after notifying the guardianship supervisor the information was requested, there is still no response within 10 business days;
• notifies the GS and the guardianship supervisor via email when the financial reports (i.e., reconciliation report, balance report, etc.) are available for reviewing and/or printing in the GOLD system;
• maintains accurate, and current electronic financial records for wards and implements program identified financial controls to achieve this goal;
• reviews the GOLD case record monthly to verify if asset information is entered; and
• notifies the GS and the guardianship supervisor, and copies the GA supervisor via email if asset information has not been furnished to the GA unless there is documentation in the record indicating the ward does not have additional financial assets.

Discussion and Relevant Information. The GA may be called upon to provide other program support to the GS aside from his or her primary duties. Upon request of the GS and on approval of the GA supervisor, the GA may be asked to:

• assist the GS with research tasks to determine ward's assets, properties and liabilities;
• assist with the development of the monthly allowance and with the preparation of legal documents including the initial inventory, and annual and final accountings; or
• assist the GS with completion of various documents, reports, and taxes including:
• arrange for preparation and filing of tax forms;
• prepare an application for benefits to which the ward is entitled and prepare annual reports to government agencies administering benefits when DADS serves as representative payee;
• assist the GS with correspondence related to ward's creditors or persons who owe money to wards;
• implement the accounting systems as directed by program management;
• complete all program management reports according to established time frames; and
• participate in the regional and state quality assurance reviews.

The GS provides the GA with documentation to support the financial records pertaining to the wards. The GS is responsible for scanning and attaching relevant information to the GOLD case record to include such items as inventories, tax forms, benefit information, etc. The GS furnishes the information to the GA as agreed upon by the supervisors or may indicate in writing to the GA if the GS chooses to enter it. The GS may ask the GA as well as the AA for assistance with scanning and attaching relevant information if approved by the applicable supervisor. It is the responsibility of the GA to enter the transaction data into the GOLD case record. This responsibility cannot be delegated to anyone other than another GA. Such delegation requires the recommendation of the appropriate supervisors and must receive the approval of the ROM, the SD or the UMPPD. Although it is the responsibility of the GA to enter the asset information into the GOLD record, the GS may wish to do so. In that event, the GS confers with the GA and the guardianship supervisor and if agreed, then the GS will enter the asset information and will be held accountable for doing so. This agreement must be documented by the guardianship supervisor in the GOLD case record.

When requesting pertinent information and setting time frames for receipt of missing information, the GA takes into consideration other activities which must be completed (e.g., Annual Accounts, Final Accounts, monthly reports, etc.). The GA informs the guardianship supervisor and the GA supervisor and elicits their assistance in addressing exceptional issues as they arise. If the GA does not take action to resolve the outstanding issues or bring them to the attention of the appropriate supervisor, the GA is held accountable for his or her failure to act. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the property into GOLD, he or she notifies the GA when it is entered.

References:
Section 1130.3, Role of the Guardianship Accountant (GA)
Section 6222, Financial Paper Case Record
Section 4150, GA Record-Keeping Responsibilities

4130  Setting Up and Keeping Accurate Records – General Information

The GS and the GA set up and keep accurate financial records on all wards. These records provide an audit trail and also help with completion of accountings to the court and to government agencies which administer benefits. If any of the ward's money cannot be accounted for, the court has the authority to require the guardian to restore unaccounted for funds.

4140  GS Record-Keeping Responsibilities

Policy: The GS shall maintain accurate financial case records on guardianship of estate or representative payee cases or any case in which DADS maintains at least one account with a financial institution.

Required Procedures – The GS:

• furnishes the asset and income information to the GA for entry into the GOLD case record or, upon written notification via email to the GA and the supervisor, the GS assumes responsibility to enter it into GOLD;
• scans and attaches, to the GOLD case record, copies of incoming checks paid to the ward, except for those directly deposited to the account or sent to the facility as representative payee within 14 calendar days of receiving the check. The GS notes in the checkbook the date received, the amount received, and the source;
• keeps original receipts for every purchase made for each ward and scans and attaches copies of all receipts to the GOLD case record for each ward within 14 calendar days of making a purchase;
• notifies the GA via email when checks and receipts discussed above have been attached to the GOLD case record;
• keeps a register current for checking and savings accounts and includes such items as bank drafts, automatic payments, amount of check, interest earned, payee, etc. as information becomes available;
• scans and attaches to the GOLD case record, by the 6th day of the month or upon request, a copy of the check register and files a copy in the financial case record (also known as GS financial folder);
• complies with the request of the GA to furnish additional information such as an updated copy of the checkbook within seven calendar days of receiving the request unless the supervisor grants the GS an extension for good cause;
• reviews completed financial reports created by the GOLD system when notified by the GA the reports are available;
• compares the account balances with the reconciliation report and statements furnished by the GA and works with the GA to address any discrepancies;
• keeps a paper financial case record on each ward containing all originals of the ward's financial documents including, but not limited to:
• originals of signed and reconciled bank statements;
• originals of receipts; and
• original check registers; and
• documents all supervisory approvals in the GOLD case record unless the supervisor indicates they prefer to complete the documentation themselves.

Discussion and Relevant Information. Maintaining accurate and complete records is of the utmost importance in ensuring the GS accounts for financial activity performed by DADS as guardian of the estate. Ensuring GOLD case records are updated is crucial to the program's ability to accurately track the ward's funds and assets. Coordination with the GA establishes an audit trail and ensures annual accounts can be prepared and filed with the court without delay. It is recommended to maintain a copy of all checks written on an account in the paper financial file as well as the GOLD case record as much as practical. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the asset and income information into GOLD, he or she notifies the GA when it is entered.

References:
Section 1130.2, Role of the Guardianship Specialist (GS)
Section 4160, Financial Case Record Timeframes
Section 6222, Financial Paper Case Record

4150  GA Record-Keeping Responsibilities

Policy: The GA shall maintain accurate electronic records on guardianship of estate cases, representative payee cases and any case in which DADS maintains at least one account with a financial institution.

Required Procedures – The GA:

• uses the GOLD system to record and reconcile the ward's finances, assets and expenditures EXCEPT if the:
• only income is a government benefit and the facility in which a ward is placed is the representative payee and the GS does not make expenditures from the ward's placement trust account;
• the facility is representative payee and maintains the trust account and the GS does not make any expenditures from the trust account;
• GS does not receive any income, manage any money or make any expenditure on behalf of the ward; or
• ward does not have any assets which may produce income at a later date (if a non-revenue producing piece of property is identified, for example, the value of the property is tracked in the GOLD financial area as an asset);
• enters information into the GOLD case record according to documentation requirements in Section 6000, Information Management;
• enters into GOLD, unless the GS notifies the GA and the guardianship supervisor in writing via email he or she assumes the responsibility:
• the date DADS as guardian assumes possession of or becomes aware of the asset (i.e., the accountable date);
• the value of assets to include (but not be limited to):
• tax or appraised value of real property;
• appraised or estimated value of personal property, household goods and furnishings and collectibles;
• value of life insurance policies and burial policies;
• savings and loan accounts, IRAs, 401Ks, stocks and bonds; and
• royalties monies paid to the ward, except income paid to and managed by a facility as representative payee;
• disbursements;
• transfers of funds; and
• other financial transactions;
• ensures copies of receipts, check registers, checks, bank statements and other items are scanned and attached to the GOLD case record;
• completes reconciliation reports in the GOLD system;
• prints a scanned copy of the bills and receipts and uses during reconciliation activities;
• conducts telephone reviews and reconciliation of GS financial case records semi-annually and sends a subsequent report of the telephonic review and reconciliation to the GS within 14 calendar days of completing the review, and sends an electronic copy to the guardianship supervisor;
• ensures the status of accounts is correct, and closes out GOLD financial accounts with a zero balance as needed;
• enters all final account information into GOLD; and
• reviews the ward's financial accounts upon request of the supervisor to ensure the ward's financial account(s) are at a zero balance and the account status is "closed" before the guardianship supervisor closes the GOLD case record.

Discussion and Relevant Information. The GOLD system is used by DADS to maintain records on cases in which DADS is guardian of the estate or representative payee. Use of the GOLD financial area is required in cases in which DADS is guardian of the estate or representative payee with money deposited in a financial institution. The GA maintains a GOLD financial record on only those accounts where the GS make expenditures and does not maintain a record on trust fund accounts maintained by a facility.

In the event the GA is unable to make entries into GOLD due to extended leave, vacancies or other extenuating circumstances, the guardianship supervisor consults with the ROM and the GA Supervisor to determine how best to proceed. Under no circumstances is another unit guardianship employee authorized to make GOLD financial entries without the expressed written approval of state office management or as otherwise identified in these policies. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the property into GOLD, he or she notifies the GA when it is entered.

References:
Section 4140, GS Record-Keeping Responsibilities
Section 6250, GOLD Financial Record
Section 4160, Financial Case Record Time Frames

4160  Financial Case Record Time Frames

Policy: The GS shall maintain the official financial record and ensure it is up to date with information furnished by the GA within 10 calendar days of receiving the information.

• The GA shall furnish the GS the original bank statement(s) by the 25th day following reconciliation and shall review the paper case file maintained by the GS on a semi-annual basis.

Required Procedures – The GS follows the guidelines outlined in the following table in setting up and maintaining the paper financial records.

Table # 4000-1, Organization of Paper Financial Record

Discussion and Relevant Information. Unless otherwise noted, items under each tab are filed in chronological order in ascending order. The original bank statement is mailed to the GA by the bank. Once it is reconciled, the GA signs it, scans a copy of the signed statement and attaches it to the GOLD case record, and mails the original bank statement to the GS. The signature of the GA indicates the statement is reconciled. The use of a stamped signature is prohibited. Exceptions to this policy require supervisor and state office approval.

The GA assists the GS with the initial set up of the paper financial records upon the request of the GS and approval of the supervisor.

References:
Section 6222, Financial Paper Case Record
Appendix V, Financial Case Record

4210  Handling a Ward's Valuables or Cash

Policy: The GS shall act prudently and ethically when handling the ward's valuables, cash or other assets of the estate.

• The GS shall make reasonable efforts to have another DADS employee or witness present during transactions.

Required Procedures – The GS:

• enlists another DADS guardianship employee, upon approval of the guardianship supervisor, to witness and assist in conducting a physical inventory and itemizing property in writing in preparation to meet applicable filing requirements;
• sends a request to the supervisor of the guardianship accountants when the assistance of a GA is needed;
• uses professional judgment in retrieving items from the ward's home and makes every reasonable effort to obtain documentation (e.g., facility inventory list, receipt, etc.) and to have a witness available;
• inventories any property or valuables brought to the office for storage in a secure designated area and ensures a witness is present and the inventory is signed by both parties;
• documents the delivery or handling of a ward's valuables (including receiving newly discovered property) or cash including efforts made to have a witness present in the GOLD case record;
• counts and verifies cash handled and has the witness sign a written verification of cash found or handled;
• signs and dates the list and inventory and has the witness sign and date the list;
• furnishes the GA a copy of the inventory or supporting documentation for any valuables and cash for entry into the GOLD case record, or upon written email notification to the GA and guardianship supervisor the GS assumes responsibility to enter it into GOLD;
• files a copy of the signed, dated list in the paper case file; and
• takes digital pictures of the ward's personal and real property, copies to a CD and files in the casework/legal paper file under the Inventory tab.

Discussion and Relevant Information. When making an inventory of or removing valuables, such as cash, antiques, or jewelry, from the ward's wallet, home, safe deposit box, etc., the GS ensures someone is available to witness the action. These precautions enable the GS to provide documentation to the court when questions arise as to what occurred with the property. The GS must be present during the inventory and is solely responsible for its contents and signs the verification. The GS may request the assistance of or ask an individual to act as witness to the action of the GS in handling a ward's valuables or cash. Those individuals may include: 1) another DADS employee; 2) a bank or facility employee; 3) a court official; 4) a family member of the ward; or 5) other credible individual. All efforts to find an unbiased individual should be made prior to using a family member of the ward. When a GA assists with an inventory, his or her actions must be documented in the GOLD case record. The GS and the supervisor should consult as to whether or not to store a ward's property or valuables in the DADS office in a secure area if there is no immediate secure alternative available. Any items stored must be clearly labeled and a written inventory maintained. However, firearms and related equipment should not be brought to or stored in a DADS office or other state facility.

The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the inventory or supporting documentation into GOLD, he or she notifies the GA when it is entered.

References: N/A

4220  Reserved

4221  Change of Address

Policy: The GS shall submit a change of address card for the ward to the post office within one week of qualifying as Temporary or Permanent Guardian.

Required Procedures – The GS:

• provides the post office with the letters, certificate of appointment or copy of the order of temporary guardianship or the letters of permanent guardianship;
• uses the GS' office address as the ward's new address; and
• documents the date the change of address was completed in GOLD.

Discussion and Relevant Information. Letters of guardianship, certificates of appointment or a copy of the order of temporary guardianship are proof of DADS' authority to act as guardian of the estate. The forwarding address expires after six months, so the GS must contact each source of ongoing correspondence with a change of address request. Under no circumstances should the ward's address be changed to the GS' home address. The GS contacts each source of ongoing correspondence with a change of address.

Many elderly and disabled individuals receive excessive junk mail and telemarketing calls. To remove them from state and national mailing and telephone solicitation lists refer to the information in Appendix IX, Removal of Ward's Name from Solicitation Lists.

References:
Appendix IX, Removal of Ward's Name from Solicitation Lists

4222  Credit Checks on Credit Accounts

Policy: The GS shall assess the ward's credit status and resolve outstanding credit matters in the best interests of the estate.

Required Procedures – The GS:

• provides all three major credit reporting companies with a copy of the letters of guardianship;
• requests a fraud alert, hold, or other notice requirement from major credit bureaus to help prevent the ward or others from opening new credit accounts as needed;
• requests a credit check from all three companies;
• reviews the credit check and identifies current accounts (types, sources, etc.);
• notifies creditors DADS is guardian of the estate and provides them with a copy of the letters of guardianship;
• does not use the ward's credit accounts to make disbursements on behalf of the ward;
• notifies the companies of others who may have been allowed by the ward to use his or her credit and may no longer do so;
• cancels all known credit accounts, cuts in half credit cards and returns them to the credit card company; and
• determines whether the ward has any outstanding bills and makes payment according to the order of preference in the Probate Code §805.

Discussion and Relevant Information. A credit check is not necessary if there is no indication the ward has ever had credit. For example, a credit check would not be indicated or required for a person with severe intellectual disability who has always resided in a facility.

Credit companies will perform the first credit check without cost. The three major companies are:

• Equifax: P.O. Box 105873, Atlanta, GA 30348, 800-997-2493;
• Experian: P.O. Box 2104, Allen, TX 75013, 888-397-3742; and
• Trans Union: 2 Baldwin Towers, 1510 Chester Pike, Crum Lynne, PA  19022, 800-888-4213.

When requesting a fraud alert from all three major credit reporting companies, include a copy of the letters of guardianship and a photocopy of the ward's driver's license and Social Security card and contact the companies. The fraud divisions of the three companies can be contacted at:

• Equifax Consumer Fraud Division: P.O. Box 740256, Atlanta, GA 30374, 800-525-6285
• Experian Consumer Assistance: P.O. Box 3003, Allen, TX 75013, 888-397-3742
• Trans Union Fraud Victim Assistance: P.O. Box 92834, Fullerton, CA 92834, 800-680-7289.

The GS may use the Letter to Creditor form, Form 5140, and modify it as needed when corresponding with credit companies. The GS requests the credit company refrain from releasing the ward's information for promotional purposes.

References:
Section 5450, Notice to Creditors
Probate Code §805
Letter to Creditor, Form 5140

4230  Reserved

4231  Bank Accounts, Time Deposits and Safe Deposit Boxes

Policy: The GS shall locate, take possession of and secure bank accounts, time deposits and safe deposit boxes of the ward and shall re-title and re-style accounts according to the procedures outlined in this section.

Required Procedures – The GS:

• seeks and examines evidence of income, (e.g., income tax forms, checkbooks, old bank statements, Automated Teller Machine [ATM] cards, etc.), when making an inventory of the ward's assets;
• contacts identified financial institutions and specifically inquires about checking and savings accounts, safe deposit boxes, ATM cards and deposits with restricted withdrawal (e.g., certificates of deposit, money market accounts, annuities, and Individual Retirement Accounts [IRA], etc.) owned by the ward;
• requests a current balance sheet for each account and the balance on the date DADS was appointed as guardian using the verification of funds on deposit form and furnishes the information to the GA for entry into the GOLD case record;
• sets up bank accounts for wards in any Texas bank or insured savings and loan in accordance with program guidelines and the individual requirements of the financial institution, if needed. Concerns about requirements are discussed in consultation with the supervisor and regional guardianship attorney;
• receives permission from the guardianship supervisor prior to setting up an account for a ward at a credit union for which the ward was not a member at the time of the guardianship;
• re-titles all existing financial accounts including deposits with restricted withdrawal and safe deposit boxes owned solely by the ward or sets up new ones when needed, according to program guidelines, depending on the situation;
• does not deposit any of the ward's money in the GS' own bank account, the account of another DADS employee, the account of another ward, or the account of a family member or close associate of the GS;
• sets up direct deposit and automatic bill payment whenever possible;
• keeps statements verifying automatic bill payment of ward's bills and furnishes a copy of those statements, bills and/or invoices to the GA monthly;
• does not obtain a debit card and does not use an automated teller machine (ATM) for withdrawals of cash, deposits of funds and similar functions;
• furnishes information on all financial institutions and accounts to the GA for entry into the GOLD case record and scans and attaches all relevant documents;
• complies with the specific requirements of the court order; and
• documents all actions and supervisory consults in the GOLD case record.

Discussion and Relevant Information. The GS uses professional judgment to determine if there is a need to continue a safe deposit box or store the contents in a fire-proof file cabinet in the guardianship office. If it is questionable whether a safe deposit box should be maintained, the GS consults with the guardianship supervisor.

References:
Section 4232, Re-Titling or Setting Up Bank Accounts
Section 4233, Checking and Interest-Bearing Accounts
Section 4234, Time Deposits

4232  Re-Titling or Setting Up Bank Accounts

Policy: The GS shall title checking, savings, money market checking, and CD accounts in accordance with Social Security and other government benefit standards.

Required Procedures – The GS:

• ensures accounts are titled in such a way as to indicate the proper and legal relationship of DADS to the account;
• furnishes the ward's social security number to the financial institution;
• enlists the assistance of the guardianship supervisor and the regional guardianship attorney if the financial institution insists on using DADS identifying information on the account or refuses to establish an account without the GS' social security number; and
• scans and attaches a copy of the signature card to the GOLD case record.

Discussion and Relevant Information. DADS is exempt from the Patriot Act. DADS should not have to provide an identification number nor should any member of the agency staff when establishing an account for a ward. If the financial institution still requires an identification number because of internal policy, the GS consults with his or her supervisor and the regional guardianship attorney on whether to use a different financial institution or consults with the ROM about using a DADS identification number or the employee's social security number for identity purposes only.

The owner of the estate bank account is the ward. DADS manages the account as fiduciary as guardian of the estate. Probate Code §768 states a guardian of the estate is entitled to possession and management of property belonging to the ward. This management does not mean "ownership".

For IRS purposes, the ward's taxpayer identification number is the ward's Social Security Number (SSN). Internal Revenue Code, 26 U.S.C. § 6109(a) states the identifying number of an individual (or his estate) shall be such individual's SSN. The GS should not be using his or her SSN or a taxpayer identification number of DADS for the ownership of the account. The GS does not furnish his or her own social security number to a bank or financial institution. If requested to do so, the GS consults with the guardianship supervisor and regional guardianship attorney. At most, DADS may have to give a DADS TIN for the account for identity purposes.

More information on identity of signatories is available in Appendix XI, Identity of Signatories.

Styling and Titling of Accounts – DADS as Guardian

If the payee is the legally appointed guardian of a minor or incapacitated adult:

1. enter name of guardian and ward exactly as shown in the letters of appointment;
2. show the designated title after name of payee;
3. show payees appointed as guardians of estates as guardians even if selected as payee on some other basis; and
4. enter name of beneficiary (ward).

Example: "(Payee's name) Guardian of (beneficiary's name)." To illustrate, if DADS is the guardian of estate of John Doe, the account is styled:

"DADS, Guardian of Estate of John Doe, an Incapacitated Person"

Styling and Titling of Accounts – DADS as Representative Payee

If DADS is guardian of the person only and representative payee of John Doe, the account is styled:

"DADS, Guardian
FBO John Doe"

FBO is an abbreviation of "for the benefit of". A slight variation of the preceding example may also be used when DADS is representative payee.

The chart in Section 4233, Checking and Interest-Bearing Accounts, may help further clarify how accounts should be established.

References:
Section 5850, Application to Set Investment Plan
Section 4232, Re-Titling or Setting Up Bank Accounts
Section 4234, Time Deposits
Section 4236, Placement Trust Accounts
Section 4130, Setting Up and Keeping Accurate Records
Section 4140, GS Record-Keeping Responsibilities
Section 4150, GA Record-Keeping Responsibilities
Probate Code § 768
Internal Revenue Code, 26 U.S.C. § 6109(a)
31 C.F.R. §§ 103.121(a)(3)(i), 103.121(a)(3)(i)(B)(1), 103.121(a) (3) (ii) (B), and 103.22(d) (2) (ii)) through (iv)
31 U.S.C. § 5318(1)(1) and 5318(1)(2)(A)
Appendix XI, Identity of Signatories

4233  Checking and Interest-Bearing Accounts

Policy: The GS shall set up checking accounts and interest-bearing accounts consistent with program requirements according to the account type.

Required Procedures – The GS:

• deposits income and monies received from other sources (e.g., sale of property, etc.) into the ward's account, except for income made payable to a representative payee (e.g., facility, money management program, etc.);
• ensures funds deposited into a single bank do not exceed the $250,000 FDIC insurance limit;
• ensures as much as possible accounts do not incur periodic service charges;
• ensures bank statements and other statements of accounts are sent directly to:
  • the assigned GA for guardianships created before Dec. 1, 2011, until such time as the state office may request an address change;
  • the centralized post office box below for guardianships created on or after Dec. 1, 2011:

  Texas Department of Aging and Disability Services, Guardian
  DADS Guardianship Services Program
  P.O. Box 301688
  Austin, TX 78703

• permanently maintains a copy of the bank statement and other statement of accounts in the ward's financial file upon receipt of those documents;
• ensures checks, transfers or withdrawals from a checking account or interest-bearing account other than direct debit between accounts are made in accordance with the chart in Table 4000-2, Bank Authorizations and Signatures;
• transfers or arranges direct debit into an interest-bearing account for any amount exceeding $2000 above the monthly expenditures after the bills are paid, unless waived by the supervisor in an exceptional situation;
• does not obtain or use a debit card on a ward's account;
• documents supervisory approvals or waivers on the service plan and files supporting documentation behind the bank signature card;
• signs checks "(name of GS), GS", when DADS is guardian of the estate;
• signs check "(name of GS), GS" when DADS is representative payee and guardian of the person but not guardian of the estate;
• maintains a "working" checkbook register so as to ensure the GS does not write a check for insufficient funds;
• scans and attaches a copy of the signature card to the GOLD case record; and
• arranges direct deposit of the ward's income into a checking or savings account.

Required Procedures – The GA:

• scans and attaches bank statements and other statements of account to the GOLD case record; and
• mails the original bank statements to the appropriate supervisor for delivery to the GS.

Table 4000-2, Bank Authorizations and Signatures

Discussion and Relevant Information. It is essential accounts be reviewed on a regular basis. An individual who has more than $2,000 in a bank account is ineligible to receive Medicaid benefits. The GS consults with the guardianship supervisor on a regular basis as to the actions being taken on those accounts with a balance exceeding $2,000. It is also important to regularly review accounts to determine if the ward's funds are subject to service charges. If so, the GS seeks to have those charges waived or may consider changing financial institutions. Any authorization to exceed $2,000 must be documented in GOLD.

The signature on checks needs to reflect the fiduciary relationship (e.g., guardian, rep payee, etc.) on an individual account not yet re-titled. Examples of proper signatures for checks on individual accounts not yet re-titled include:

• (signature) GS, agent for Guardian of John Doe, DADS;
• (signature) GS, agent for Guardian, DADS;
• DADS Guardian, (signature) GS, agent; and
• DADS Guardian FBO John Doe (signature) GS, agent.

As of Dec. 1, 2011, DADS began the practice of having all new bank statements and statements of account sent to a centralized mailbox. Statements on existing accounts will be migrated to the centralized P.O. Box over an undetermined period of time. It is important to use the Austin P.O. Box for any change of address for statements.

References: N/A

4234  Time Deposits

Policy: The GS shall establish time deposits consistent with program and court requirements.

• The GS shall not set up time deposits until an application to set investment plan has been approved by the court or the court has waived the investment plan.
• The GS shall ensure funds deposited into a single bank do not exceed the $250,000 FDIC insurance limit.
• The GS and the guardianship supervisor shall determine whether time deposits which existed at the time DADS was appointed guardian will be continued or converted into a certificate of deposit (CD).

Required Procedures – Permanent Guardianship. The GS:

• sets up time deposits as a CD unless directed to do otherwise by the court or the court waives the investment plan; and
• follows procedures under Section 4232, Re-Titling or Setting up Bank Accounts, if a time deposit is located, or if the GS is setting up a new account.

Required Procedures – Temporary Guardianship. The GS:

• follows the steps listed above in permanent guardianship unless restricted by the court;
• follows all court orders such as freezing of accounts; and
• documents the court requirements in the GOLD case record.

Discussion and Relevant Information. A time deposit is an account with a penalty for early withdrawal, such as a CD, 401K savings plan, annuity, or Individual Retirement Account (IRA). Generally, if withdrawal of a pre-existing time deposit or the conversion of funds into a CD will result in a penalty, staff should continue the existing account. In guardianship cases, a financial institution may waive the penalty, but is not required to do so. Circumstances of the ward may be such as to indicate a necessity to liquidate the CD to meet the ward's needs. If so, court permission to do so, should be sought.

It is important to ensure funds deposited in one bank do not exceed the FDIC insurance limit of $250,000. This is a cumulative figure (e.g., two CDs, one checking account and one savings account are considered in arriving at the total insured amount). Under the FDIC regulations deposits in separate branches of an insured bank are not separately issued. However, deposits in one insured bank are insured separately from deposits in another insured bank. In other words, funds in Bank of America are insured up to $250,000 total in all accounts and funds in Wells Fargo are insured up to $250,000 in all accounts on deposits with each bank respectively.

References:
Section 4232, Re-Titling or Setting Up Bank Accounts

4235  Reconciliation of Bank Statements and Maintenance of the Official Financial Case Record

Policy: The GA shall complete a reconciliation of the bank statements monthly and complete a reconciliation of the financial accounts for each ward when DADS is either guardian of the estate or representative payee.

• The guardianship supervisor shall review and approve the reconciled bank statement in GOLD by the 30th calendar day of each month.

Required Procedures – The GA:

• reconciles the statements on the checking, savings, money market, CD as appropriate, by the 14th calendar day of the month following the receipt of the statement;
• signs (full signature required) and dates the original statements once they are received, and sends the original of the signed and dated statements to the appropriate supervisor for delivery to the GS;
• coordinates exchange of information with the GS and the supervisor as outlined in Section 4120, Responsibilities of the Guardianship Accountant (GA);
• prepares a GOLD monthly financial report;
• reports discrepancies to the guardianship supervisor for investigation or for assistance in resolving outstanding issues;
• requests assistance from the guardianship supervisor in resolving discrepancies as needed; and
• documents discrepancies and requests made for information in a case note in the GOLD case record.

Required Procedures – The GS:

• maintains the official financial record;
• scans and attaches a copy of all receipts and invoices and statements of accounts received by the GS to the GOLD case record within 14 business days of making a purchase or receiving a statement and notifies the GA when they are available for viewing;
• seeks permission from the guardianship supervisor to waive the limitations on balances (i.e. $2000 in checking account) when necessary and if permission is received, documents the approval in the GOLD case record and the paper financial case file;
• notifies the supervisor in writing if they have not received notification from the GA the records are available for viewing in GOLD by the 25th day of the month;
• reviews the reconciled statement of accounts and other financial records and works with the GA to resolve any issues;
• responds to requests for information received from the GA within seven calendar days of the request unless an extension has been granted by the guardianship supervisor; and
• responds within the time frame set by the GA in instances where there is a need for a more timely accounting.

Required Procedures – The guardianship supervisor:

• reviews the reconciled bank statements and GOLD reports and information furnished by the GA;
• documents actions required by either the GA or the GS in the GOLD case record;
• ensures a follow-up plan is developed to resolve outstanding issues and documents all actions taken to resolve those issues;
• assists the GA in obtaining missing information; and
• documents in the GOLD case record when they review the reconciled statements.

Discussion and Relevant Information. It is a joint responsibility of the GA, the GS, and the guardianship supervisor to maintain adequate and complete financial records of the wards. It is critically important for the GS to furnish a copy of receipts, invoices, statement of accounts, and other financial information to the GA so the accounts can be reconciled and a complete and thorough audit trail established. These bills, receipts and statements are to be scanned and attached to the individual ward's financial file. Failure to maintain records in accordance with policy may result in disciplinary action up to and including termination of employment and may result in a notification to law enforcement. The AA may assist the GS or the GA with scanning and attaching invoices, bills and statements to the GOLD case record if approved by the supervisor.

Many financial institutions distribute statements quarterly on CDs, savings, and money market accounts. In this event, the GA reconciles the statement with GOLD and sends the original statement to the GS and notifies the supervisor a copy is attached to the GOLD case record and is available for review. Facilities frequently furnish quarterly trust fund statements. The patient trust fund account balances and transactions are not tracked as a "bank" account in GOLD; the statement is attached to the non-banking area and the GS reviews and monitors the expenditures.

Although the reconciliation is generated within GOLD, a signed GOLD reconciliation report is attached to the GOLD case record and a copy is maintained in the GS' paper financial file. When corresponding with banks and savings and loans, the GS may use the Letter to Bank, Form 5057, and modify it as needed.

References:
Section 4110, Responsibilities of the Guardianship Specialist (GS) as Guardian of the Estate and Representative Payee
Section 4120, Responsibilities of the Guardianship Accountant (GA)
Section 4140, GS Record-Keeping Responsibilities
Section 4150, GA Record-Keeping Responsibilities
Section 4160, Financial Case Record Time Frames
Section 6222, Financial Paper Case Record
Letter to Bank Form, Form 5057

4236  Placement Trust Accounts

Policy: The GS shall ensure placement trust accounts are established and monitored, as appropriate, during a temporary or permanent guardianship of the person and/or estate.

Required Procedures – The GS:

• requests the placement to set up a trust account;
• furnishes the placement the name, address, and phone number of the assigned GA;
• requests the placement send a copy of the trust account statement to the GA quarterly and at the conclusion of a temporary or permanent guardianship;
• obtains a receipt from the placement each time the GS makes a deposit or withdrawal from the trust account and scans and attaches a copy of the receipt to GOLD case record for review by the GA;
• notifies the GA when receipts have been attached to a file;
• monitors expenditures made by the placement or the ward from the trust account;
• documents review of the trust account including the date, any concerns, actions taken, etc. in the case record; and
• consults with the supervisor and the regional guardianship attorney when appropriate to determine plans of action to resolve outstanding issues.

Discussion and Relevant Information. Trust accounts are used for the benefit of the ward. Expenditures may include such items as clothing, monthly allowance, and for purchase of other such items. The GS works with the ward and, in most cases, does not restrict the ward's expenditures. The GS fosters the ward's independence as much as possible.

When a trust account is established by a facility, the GS requests the facility furnish a copy of the account statement and makes reasonable efforts to obtain a copy of the statement if it is not furnished. The GS documents all attempts to obtain a copy. When the statement is received by the GA, it is scanned and attached to the financial non-bank related area of GOLD. A GOLD "bank" account is not established to track the funds and the funds are not included in accountings to the court.

From time-to-time, a GS may be requested to approve an expenditure of funds from the placement trust fund account; the GS is not responsible for this expenditure. It is, however, vital for the GS to monitor the placement trust account to ensure the ward's funds are spent effectively and accounted for by the placement. When the GS reviews any statements provided by the facility and an expenditure appears to be of a questionable nature or is not properly documented, it is the responsibility of the GS to discuss it with the facility and the guardianship supervisor. Any contact with the facility regarding the trust fund expenditures or balances must be documented in GOLD. In those cases not tracked in GOLD, the trust fund statements are kept in the casework/legal file, filed under the financial tab, and a copy is scanned and attached to the GOLD case record.

Requirements regarding recipient trust fund management in nursing facilities are found in §19.404 and §19.405 of the Nursing Facility Requirements for Licensure and Medicaid Certification.

Most financial complaints originate when Consumer Rights and Services Complaint Intake staff receive a call from a complainant. Concerns about placement trust fund management issues may be called in to the Consumer Rights and Services section of DADS at (800) 458-9858.

References:
Section 4232, Re-Titling or Setting Up Bank Accounts
Section 4235, Reconciliation of Bank Statements and Maintenance of the Official Financial Case Record
Nursing Facility Requirements for Licensure and Medicaid Certification §§19.404 and 19.405

4237  Cash Withdrawals

Policy: The GS shall make cash withdrawals only under exceptional circumstances such as providing cash to the ward for monthly allowances (if appropriate).

Required Procedures – The GS:

• has the recipient of the cash or a witness give a receipt verifying the cash was received and documents to whom the cash was paid and for what the cash was used (e.g. spending money, personal care items, etc.);
• notifies the supervisor if the recipient of the cash is the ward and there were no other witnesses to the transaction;
• scans and attaches a copy of the original signed receipt to the GOLD case record within 14 calendar days of making the withdrawal and files the original receipt in the financial case record (under Financial Accounts);
• notifies the GA the receipt has been attached to the GOLD case record;
• documents ongoing approvals regarding financial practices in the Service Plan Notes (case notes) of the GOLD case record; and
• obtains supervisory approval for all cash withdrawals over $100 and documents supervisory approval and other actions in the GOLD case record.

Discussion and Relevant Information. The GS makes every attempt to avoid cash transactions and even the appearance of impropriety in handling a ward's cash and assets. The GS does not reimburse him or herself for expenditures from a ward's account by either asking the ward to sign a receipt stating they are paying the GS back or by self-payment from the ward's account. The GS provides a receipt for items, goods or services purchased for the ward to another signatory on the ward's account and requests reimbursement from the individual from the ward's account. Another signatory may write a check to the GS where appropriate but only:

• for the amount of the purchase if a receipt is furnished; and
• upon written approval of the supervisor.

Under no circumstances are reimbursements to be made without receipts for purchase. Any such approval must be documented in the GOLD case record by both the guardianship supervisor and the GS. The on-going approvals contained within the Service Plan Notes (case notes) are incorporated on the service plan report.

References:
Section 4160, Financial Case Record Timeframes
Guardianship Service Plan, Form 5030

4238  Joint Ownership of Accounts

Policy: The GS shall locate, take possession of, and secure jointly owned accounts to the extent possible depending on the powers granted in the court order and the ward's status as owner.

Required Procedures – The GS:

• advises the financial institution of the guardianship of the estate and provides proof of authority to act as guardian (i.e., letter of guardianship);
• requests in writing the bank not permit withdrawals without the consent of the GS;
• seeks to elicit the assistance of the joint owner to remove their name from the account;
• contacts the guardianship supervisor and the regional guardianship attorney immediately, if the bank and/or the joint owner will not or is unable to cooperate with the GS' requests;
• determines the extent of ward's ownership in accounts by talking with the ward, the co-owner(s), and reviewing documents related to the account (e.g., documents titled "in trust for" or "for the benefit of," etc.);
• removes the other person's name if he or she consents and the financial institution agrees;
• consults with the supervisor once the above information is gathered;
• separates out the ward's portion, once the court gives approval; and
• sets up an account following the guidelines in Section 4232, Re-Titling or Setting up Bank Accounts.

Discussion and Relevant Information. A court order may be needed to freeze a jointly owned account or remove the other person's name until the judge determines the rights of the person or persons to a jointly owned account whose name(s) is/are on the account.

References:
Section 4232, Re-Titling or Setting Up Bank Accounts

4239  Safe Deposit Boxes

Policy: The GS shall secure all safe deposit boxes to the extent determined possible depending on the ownership of the box.

Required Procedures – The GS:

Ward has sole ownership. When the ward is the sole renter of the safe deposit box, the GS:

• provides the bank with a copy of the letters of permanent guardianship or certificate of appointment, or certified copy of the order for temporary guardianship;
• checks the contents of safe deposit boxes owned by the ward and conducts an inventory in accordance with procedures in Section 4210, Handling a Ward's Valuables or Cash, when making an inventory of the safe deposit box;
• reviews documents in the box to determine if there is a will and if so follows the procedures in Section 3430, Wills; and
• re-titles the box as "(Name of ward)" and indicates DADS as guardian.

Ward has joint ownership. If the ward rented the box jointly with someone else, the GS:

• asks the joint owner to be present when the box is opened;
• makes reasonable efforts to have another DADS employee or a witness present when possible during opening and review of the contents;
• documents the efforts to find a witness in the event one is not located to be present;
• separates the items, removes the ward's belongings and appropriate documents (if there is a will, a pre-need burial policy or other legal documents in the box), makes a copy of the will, pre-need burial policy or other legal documents and leaves the copy in the box (See Section 3430, Wills);
• stores the original burial policy or other legal documents as outlined in Section 6251, Personal Records of the Ward, and deposits the original will as found in Section 3430, Wills;
• follows steps outlined above under "Ward has sole ownership";
• consults the supervisor and the regional guardianship attorney, if directed to do so by the supervisor; and
• documents all consultations in the GOLD case record.

Questions or disagreements as to ownership of contents. If there is a question or disagreement as to the ownership of some of the contents, the GS:

• leaves the contents in the box;
• inventories and photographs all the contents with the assistance of another DADS guardianship employee (e.g., GA, GS or supervisor) upon request;
• reviews documents to determine if there is a will in the box and if so, seeks permission from the joint owner to remove the will in order to make copies (See Section 3430, Wills) or asks the bank to make a copy at the time of the review;
• documents the fact a will is in the box and reviews it so as to determine the ward's heirs for the purpose of documentation, if the joint owner refuses the request to make a copy of the will;
• lists contents which the co-owner claims are his or hers;
• contacts his or her supervisor and requests the assistance of the regional guardianship attorney to see if a court order is needed;
• scans and attaches any documents, wills and inventories to the GOLD case record;
• copies the digital pictures to a CD and puts the CD in the financial case record; and
• documents all consultations in the GOLD case record.

Discussion and Relevant Information. Many individuals maintain a copy of their wills in their safe deposit box. Careful review of documents in the safe deposit box should be made to determine whether the ward's will, pre-need policy, marriage papers, insurance policies, or other legal documents are in the box.

Individuals often put documents in a safe deposit box which have no real value but are placed for emotional reasons. If the GS encounters a birth certificate of the ward's child, papers which may have significance to the family, he or she makes reasonable efforts to deliver the items to the appropriate party or parties. In those cases, the GS obtains a receipt (e.g., return mail receipt, overnight delivery receipt, etc.).

Disposing of documents or other safe deposit box items without a court order is dependent on the specific item in question. For example, the GS may give a birth certificate to the person who is the subject of the certificate, since the certificate actually belongs to the person, although it may have been obtained by the ward. The GS tries to determine who owns any other items. If they belong to another person, no court authority is needed to return the property to the person. If the GS wants to dispose of property belonging to the ward, he or she should file a motion to dispose of the property as guardian of the estate and wait for an order from the court before disposing of the property.

References:
Section 4210, Handling a Ward's Valuables or Cash
Section 6251, Personal Records of the Ward
Section 3430, Wills

4240  Trusts

Policy: The GS shall coordinate with CPS, DADS, and any trustee or trust entity to ensure existing trust matters are administered consistent with terms of the trusts.

Required Procedures – The GS:

• takes steps to locate trusts and determine the type of trust and pertinent details of the trust;
• obtains a copy of the trust and forwards it to the regional guardianship attorney, who will review the terms of the trust, if the trust was established by another entity or if the GS is unsure who established the trust;
• obtains information from the trustee as to the type of disbursements permitted by the terms of the trust;
• sends a written request to the trustee asking them to make disbursements on behalf of the ward which are permitted by the terms of the trust; and
• documents all actions and attaches a scanned copy of the trust documents to the GOLD case record.

Discussion and Relevant Information. A trust is a fiduciary relationship with respect to property arising from when a person creating the trust shows an intent (usually by written instrument) to create the relationship and which requires the person holding title to the property to deal with it for the benefit of another person (Property Code §111.004). Court-created trusts can arise from guardianships (Probate Code §867). A trust may be established prior to or during the guardianship. The property is outside the guardianship of the estate, subject to the control of the trustee, and is not subject to the control of the guardian. The trustee makes disbursements from the trust according to the terms of the trust. Some trusts are "special needs trusts" which allow the ward as beneficiary to maintain eligibility for SSI and Medicaid.

Trusts may exist in certain AOC cases. Examples are the Statewide Master Trust for Children or the Travis County Master Trust.

The regional guardianship attorney, with consultation from the chief guardianship attorney, as needed, determines whether the trust was drafted with language to keep the ward eligible for SSI and Medicaid. If a trust has not been drafted with such language, the attorney determines what action needs to be taken.

The GS may request assistance from another DADS employee (i.e., GA, AA, another GS, etc.) with the above tasks upon approval of the supervisor.

References:
Section 4410, Accounts for Aging Out Children (AOC) – General Information
Section 4241, Qualified Income Trust – General Information
Property Code §111.004
Probate Code §867

4241  Qualified Income Trust (QIT) – General Information

A Qualifying Income Trust (QIT), formerly called a Miller's Trust, is an income diversion trust which allows Medicaid eligibility for persons who meet all Medicaid eligibility requirements, such as citizenship, residency, and medical necessity, meet Medicaid resource limits, and whose income exceeds the Medicaid limit. The provisions for QITs were adopted as part of the OBRA 93 budget bill, a revision to 42 U.S.C. Section 1396(c).

State Statutory Requirements for Guardian. Probate Code §§767(5) and 774(a)(8) require a guardian of the person or estate, respectively, to apply to the court before establishing a QIT. By policy, DADS requires a guardianship of estate (GOE) to establish a QIT unless the ward has government benefits only. Additional information on Medicaid regulations pertaining to QITs is available in the Medicaid for the Elderly and People with Disabilities Handbook, Appendix XXXVI, Qualified Income Trusts (QITs) and Medicaid Eligibility for the Elderly and People with Disabilities (MEPD) Information.

When all income is diverted to a QIT, Medicaid eligibility is allowed for the services listed in the chart below. Income diverted to a QIT does not allow Medicaid eligibility for SSI purposes.

Table 4000-3, Services Available for Medicaid-Eligible Persons with QIT

4241.1  Establishing a Qualified Income Trust (QIT)

Policy: The GS shall obtain court approval prior to establishing a QIT and follow specified program guidelines for creating a QIT account.

Required Procedures – The GS:

• contacts an HHSC Medicaid Eligibility (ME) Specialist if a ward appears to be Medicaid eligible under QIT provisions. If the ME Specialist concurs with the determination, the GS:
• consults with his or her supervisor and regional guardianship attorney;
• completes and files the Application to Establish a Qualifying Income Trust with the court (Probate Code §§ 767(5) and 774(a)(8));
• completes the Qualifying Income Trust document naming DADS as trustee, if court approval is granted; and
• provides a copy of the QIT to the ME Specialist;
• establishes a separate bank account for the QIT in accordance with guidelines outlined as follows when a QIT is created:
• places the GS, supervisor and designated backup on the account as signatories;
• titles the account "Qualifying Income Trust for (name of ward)" – may indicate DADS as trustee;
• requires only one signature on checks;
• arranges for direct deposit into the account only pension, Social Security, and other income specified by the HHSC Medicaid Eligibility (ME) Specialist;
• maintains the QIT account separately from all other accounts; and
• arranges for the bank statement to be sent directly to:
  • the assigned GA for guardianships created before Dec. 1, 2011, until such time as the state office may request an address change;
  • the centralized post office box below for guardianships created on or after Dec. 1, 2011:

  Texas Department of Aging and Disability Services, Guardian
  DADS Guardianship Services Program
  P.O. Box 301688
  Austin, TX 78703

• prints out a copy of the reconciled reports and places them in the paper case file.

Required Procedures – The GA:

• establishes a QIT account in the GOLD case record;
• reconciles the QIT statement of account, signs and dates the statement when reconciliation is complete, and keeps a copy for his or her records;
• scans and attaches into the GOLD case record, and sends the original signed and dated statement to the guardianship supervisor for delivery to the GS; and
• notifies the GS and the supervisor monthly the reconciled GOLD reconciliation report is available for review.

Discussion and Relevant Information. A QIT may not be revoked once established. Deposits of resources into the QIT account will result in a transfer of resources penalty and could invalidate the QIT. The GS or guardianship supervisor must request assignment of a GA to a case from the GA supervisor.

The GS does not generally establish a QIT during a temporary guardianship unless it is likely DADS will be appointed as permanent guardian. Prior to doing so, the GS obtains approval from the guardianship supervisor.

References:
Probate Code §§767(5) and 774(a)(8)

4241.2  Managing a Qualified Income Trust (QIT)

Policy: The GS shall provide ongoing management of QIT accounts.

Required Procedures – The GS:

• notifies the Medicaid Eligibility specialist if he or she transfers the account to another financial institution;
• lists the QIT account on the initial inventory or final accounting for temporary guardianship and attaches a completed Verification of Funds on Deposit with assistance (if needed) from the regional guardianship attorney;
• keeps track of disbursements from the QIT account (e.g., amount, purpose, entity, payee, etc.);
• withdraws money from the QIT account for the ward's personal needs allowance in accordance with the following:
• arranges direct transfer into another bank account of the ward in order to allow use of checks for purchases;
• makes a check payable to the ward's trust account at the ward's placement; or
• gives the ward cash according to guidelines in Section 4237, Cash Withdrawals.
• furnishes the GA information regarding withdrawals and disbursements from the QIT within 14 calendar days of making a withdrawal or disbursement;
• scans and attaches supporting documentation (e.g., receipts, statements, bills, etc.) to the GOLD case record;
• notifies the GA when the information is available for review; and
• documents the purpose for withdrawals and disbursements in the GOLD case record.

Required Procedures – The GA:

• reviews the information scanned and attached to the GOLD case record; and
• enters information regarding withdrawals and disbursements from the QIT in the GOLD case record.

Discussion and Relevant Information. Because a QIT does not count as a resource for Medicaid purposes, federal law restricts its use. The GS may use this account only for payment: (a) to the ward of the monthly personal needs allowance, (b) to the spouse (if any) a sum sufficient to provide a minimum monthly maintenance allowance (if applicable), and (c) for medical assistance provided to the ward.

When making disbursements from the QIT account, the GS considers the following Medicaid requirement: The income must be deposited into the trust account during the month in which it is received, and distributions from the trust account must be made by the trustee no later than the last day of the following month.

The QIT is not subject to the control of the guardianship court. The court cannot order expenditures from the QIT account which are not approved by Medicaid eligibility.

DADS, as trustee, is required by law to pay to the state of Texas all monies remaining in the QIT account up to the total amount expended by the state for medical assistance, following the death of the ward. Upon the death of the ward, the GS will receive a letter from the HHSC Medicaid Eligibility specialist specifying the amount to be paid and to whom the check should be made payable. The GS may, instead of waiting for the letter from the Medicaid Eligibility specialist, send the money directly in a check payable to DADS to the contact at the address below:

When sending the payment by letter directly to the contact listed above, the GS identifies the payment as a QIT with the ward's name and Medicaid number included. The GS follows up with a carbon copy of the letter and a copy of the check to the local HHSC Medicaid Eligibility specialist assigned to the ward to ensure which this requirement has been met.

If the GS has any questions concerning the QIT account, he or she consults with the Medicaid Eligibility specialist.

References:
Section 4241.1, Establishing a Qualified Income Trust (QIT)

4250  Stocks and Bonds

Policy: The GS shall locate, take possession of, and secure stocks and bonds belonging to the estate.

Required Procedures – The GS:

• looks for evidence of stocks and bonds by:
• reviewing and inventorying the contents in the ward's safe deposit box;
• reviewing broker's statements;
• reviewing income tax returns, Internal Revenue Service (IRS) forms (e.g., IRS Form 1099, etc.); and
• examining dividend checks, etc.;
• notifies all brokerage companies of the guardianship and:
• provides them with a copy of the letters of guardianship;
• requests a change of address;
• requests a replacement certificate, when evidence of stocks or bonds is found (e.g., a broker's statement, etc.), but the certificate is not found; and
• requests a verification of funds for the date of qualification;
• opens a brokerage account if stocks and bonds are discovered and the ward does not have an existing brokerage account;
• requests a replacement savings bond using a form obtained by the bank, if appropriate;
• requests the stocks and bonds be re-issued to "Estate of (Ward's name), DADS guardian". The certificates themselves can be titled in the name of the brokerage holding them. Signatories will sign as "(name of GS or supervisor), agent for the guardian, Texas Department of Aging and Disability Services";
• requests, in writing, the stock and bond company require two signatures for any actions taken on the account (GS or designated back-up GS and the guardianship supervisor);
• scans and attaches copies of stocks, bonds, inventories, income tax records, etc. to the GOLD case record;
• notifies the GA when the copies of the above documents are available for review; and
• updates signatories when DADS employees change positions.

Required Procedures – The GA:

• enters the value of stocks, bonds, inventories and other similar records into the asset area of the GOLD case record; and
• ensures a copy of the documents are attached to the GOLD case record.

Discussion and Relevant Information. The GS, guardianship supervisor, and the regional guardianship attorney, under the direction of the court, determine whether the ward's current investments are among those approved by Probate Code §854 and whether to continue these investments. A court order is needed to sell stocks and bonds. There is an existing form which may be modified and used as needed. The GS and the guardianship supervisor should decide if it is prudent to have all stocks and bonds except savings bonds placed in the brokerage account. This may provide a higher level of safekeeping for the certificates.

Medallion seals are usually required for any sale or transfer unless the stock is held in the name of the brokerage on behalf of the real owner. Although not a transfer of ownership, it is likely the financial institution will want a medallion seal when changing the title of the stock to prevent a fraudulent transfer. One should check each financial institution for its particular policy.

References:
Section 5850, Application to Set Investment Plan
Probate Code §854

4260  Government Benefits and Pension Checks

Policy: The GS arranges for an individual or another entity to become representative payee (if appropriate) or applies for DADS to become representative payee of the government benefit or pension check if no other suitable individual or entity applies to become representative payee.

• The GS requests a contracting entity or contract owner manage the funds of the ward or assist the ward to manage his or her funds, as applicable.

Required Procedures – The GS:

Representative Payee:

• determines if the ward is receiving a pension check or government benefit (e.g., SSI, Social Security, VA, Supplemental Nutrition Assistance Program (SNAP), etc.) and:
  • follows procedures required by the issuing entity for the government benefit or pension checks; and
  • establishes direct deposit into the ward's account, whenever possible and as appropriate;
• arranges for a provider entity to serve as representative payee, unless DADS applies to become representative payee, by sending a written request to the entity responsible for direct services (i.e., HCS provider) requesting they apply to become representative payee; and
  • notifies the provider entity (excluding nursing facilities, state supported living centers, or ICF/ID facilities) in writing of a request to the contract owner or contracting entity to manage and provide oversight of the ward's funds;
• applies to applicable state and/or federal agencies for income and benefits for which the ward may be eligible;
• reviews and signs pertinent application(s);
• contacts the regional guardianship attorney if an issuing entity or a pension or government benefit provider does not cooperate;
• consults with the guardianship supervisor when appropriate; and
• documents all actions and consultations in the GOLD case record.

Management of Ward's Funds

• requests a contract owner or contracting entity manage the funds of the ward or assist the ward to manage his or her funds unless DADS manages the ward's funds:
  • specifies conditions applicable to the ward's account including, but not limited to:
    • submission of quarterly statements;
    • authorizations required for certain amounts; and
  • monitors the funds in the ward's account.

Temporary Guardianship. The GS:

• applies for benefits necessary for the ward's immediate care and maintenance; and
• arranges for DADS to become representative payee when:
  • it appears DADS will be appointed as permanent guardian;
  • necessary to secure the income in order to administer the temporary guardianship;
  • necessary to secure the income to prevent possible exploitation;
  • in the best interest of the ward; or
  • required by the court order.

Discussion and Relevant Information. During a temporary guardianship, the GS applies only for those benefits necessary for the ward's immediate care and maintenance (e.g., Medicaid for nursing facility placement, SSI, etc.). During a permanent guardianship, the GS reviews the ward's benefits and ensures he or she is receiving those benefits which he or she is qualified to receive.

Family members of the ward should not be representative payees when DADS is guardian of the person and/or estate unless there are unusual or compelling circumstances and approval has been obtained from the ROM or SD. If the ward is in a residential placement, the GS requests the residential care provider to apply to become representative payee, when appropriate. If a placement facility is not the representative payee, the supervisor ensures there is supporting documentation regarding the reason for not designating the facility as representative payee. This decision should be reviewed annually at the time of review of guardianship to see if the circumstances have changed. The results of the review are to be documented.

The GS seeks individuals or entities to apply to become representative payee and manage the ward's funds only from among the following:

• licensed placement agency or other entity (e.g., adult foster care, nursing facility, HCS program providers, etc.);
• state agency;
• financial institution;
• AARP approved representative payee program (or similar money management organization); or
• non-profit money management program.

The HCS contracting entity or contract owner is the organization which has contracted with foster parents, residential placement facilities, HSC providers, or other like groups or organizations to provide direct delivery of services. The provider is the organization or the individuals who provide direct delivery of services to the ward. A nursing facility, an ICF/ID provider, or a state supported living center acting as representative payee is subject to trust fund requirements issued and administered by DADS and the Department of State Health Services (DSHS).

Some placement providers can assist the ward to manage his or her funds or manage those funds on his or her behalf upon request regardless of whether or not they serve as representative payee. In certain circumstances, an entity serving as representative payee for a ward may or may not also manage the ward's funds. For example, in an HCS setting, the GS requests the program provider (e.g., contract owner or contracting entity) become the representative payee. The HCS program provider is then responsible to the issuing agency (contracting agency) for monies it administers as representative payee. The contracting entity is responsible for providing documentation to DADS of expenditures of the ward's funds as requested.

The GS may request assistance from another DADS employee (i.e., GA, AA, another GS, etc.) with the completion of applications for benefits and insurance and preparation of correspondence upon approval of the supervisor. The GS reviews and signs the application.

The GS, or another DADS employee, as appropriate, uses the Social Security Administration – Notice of Guardianship Form, Form 5055, and modifies it, as needed, when addressing other entities.

References:
Social Security Administration – Notice of Guardianship Form, Form 5055

4261  Annual Accounting to Government Agencies

Policy: The GS shall follow reporting requirements of the agency providing oversight for the distribution of government benefits or pension funds when DADS serves as representative payee.

Required Procedures – The GS:

• completes specific annual report forms as required by the government agency and sends the reports to the agency in accordance with reporting deadlines;
• coordinates with the issuing agency (e.g., SSA, VA, etc.) to ensure receipt of agency's annual reports or other accounting forms; and
• files a copy of the annual report or accounting form in the paper financial case file and ensures a copy is attached to the GOLD case record.

Discussion and Relevant Information. It is imperative reports required by an entity issuing a government benefit or pension be completed following the published policies. A GS is held accountable for ensuring the forms are completed correctly and filed on time. Failure to do so may result in a loss or delay of benefits and funds for the ward and could be considered financial malfeasance.

References: N/A

4270  Insurance Policies – General Information

Insurance policies may exist at the time of the guardianship and may include life, burial or pre-need, medical, auto, homeowner's, long-term care, etc. The GS evaluates the need for continuing or modifying an existing insurance policy or of obtaining insurance to protect assets of the estate depending on the ward's financial circumstances and the court order. A copy of the insurance policy is attached to the general attachment area of the GOLD record unless a financial record is established for a policy which has a cash value.

4271  Insurance Policies

Policy: The GS shall verify the ward's insurance status relative to ownership of property to determine the need to continue coverage, or the need to purchase insurance once DADS is appointed as guardian.

Required Procedures – The GS:

• files an application with the court to continue, modify or terminate existing life insurance or annuities and follows court orders regarding application;
• seeks approval on the monthly allowance to continue payment of existing pre-need and medical insurance policies, depending on the ward's financial circumstances, as the ward's means permit;
• files an application to expend funds prior to purchasing prepaid funeral contract;
• applies for any needed insurance depending on the ward's financial circumstances, as the ward's means permit;
• furnishes the cash value of the insurance policies to the GA for entry into the GOLD record unless the GS notifies the GA and guardianship supervisor via written email he or she assumes responsibility to enter the values; and
• scans and attaches a copy of the insurance policies or certificate of coverage with a group policy to the GOLD case record.

Required Procedures – The GA:

• enters the cash value of insurance policies into the GOLD case record unless the GS chooses to enter it; and
• reviews the GOLD case record to ensure copies of insurance policies are attached to the GOLD case record.

Discussion and Relevant Information. The GS applies to private companies for any needed insurance, such as a pre-need burial policy or supplemental medical insurance.

For property/casualty insurance, the guardian of the estate (GOE) may and usually should continue or obtain this insurance without court pre-approval (Probate Code § 774(b)(5)). Life insurance and annuities are just the opposite because they are considered investments. Court pre-approval is required to maintain or purchase a life insurance policy (Probate Code §857(h)).

In certain cases, the GS may have evidence of an insurance policy (e.g., a bill) but not have the policy itself. The GS should request a copy of the policy from the company.

The discussion regarding burial, pre-need, and cremation, as well as final duties upon death of the ward, although placed within the GOE section of this handbook, applies in pertinent part when DADS is guardian of the person only. As guardian of the person, DADS can under certain circumstances purchase a burial or pre-need policy and will of necessity be involved in funeral arrangements.

The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the insurance policies into GOLD, he or she notifies the GA when it is entered.

References:
Probate Code §§ 774(b)(5) and 857(h)

4272  Life Insurance Policies

Policy: The GS shall verify and preserve all known life insurance policies owned by the ward when life insurance policies owned by or insuring the ward are discovered and when doing so is in the ward's best interest.

Required Procedures – The GS:

• determines the validity, type of policy, cash value and owner, insured, and beneficiary of life insurance policies found;
• consults with his or her supervisor to determine whether maintaining the life insurance policy is in the ward's best interests and documents this decision in the GOLD case record;
• notifies the company DADS is the guardian and furnishes them contact information;
• requests, in writing, the life insurance company not allow withdrawal from the insurance policy without a court order before the ward's death;
• obtains court approval to continue or to modify the policy (Probate Code §857(h));
• pays future premiums out of the surplus of the ward's estate when court approval is received to maintain the policy;
• furnishes information on the cash value to the GA for entry into the GOLD case record as an asset and reviews the record to ensure it is entered unless the GS, upon written notification via email to the GA and the guardianship supervisor assumes the responsibility; and
• scans and attaches a copy of life insurance policies to the GOLD case record.

Required Procedures – The GA:

• enters the cash value of the life insurance policy into the GOLD case record unless the GS has informed the GA and the guardianship supervisor in writing via email he or she is assuming this responsibility; and
• reviews the GOLD record to ensure a copy of the life insurance policy is attached.

Discussion and Relevant Information. Factors to consider when evaluating the ward's insurance status include whether:

• there are sufficient assets to maintain the ward and pay for the policy;
• the ward has unmet needs (e.g., burial policy, medical insurance, etc.); or
• the beneficiary is still living (e.g., spouse, children, etc.).

The GS obtains court permission to pay monthly premiums in the Application to Set Monthly Allowance (permanent guardianships) or Application to Expend Funds (temporary guardianship).

The GS may request the assistance of another DADS staff member (i.e., GA, AA, etc.) in preparing correspondence and legal forms upon approval of the supervisor. The GS reviews legal forms for completeness and accuracy and signs the verification, if any. The GS remains solely responsible for ensuring the task is completed. The GS may enlist the assistance of the AA or the GA in scanning and attaching documents to the GOLD case record with the permission of the supervisor. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the cash value into GOLD, he or she notifies the GA when it is entered.

References:
Probate Code §857(h)

4280  Burial Assets

Policy: The GS shall identify all burial assets owned by a ward.

Required Procedures – The GS:

• determines the estimated value of burial plots found, and the validity, type of policy, and face value of any pre-need, burial or cremation assets found;
• documents burial assets and properties (e.g., cemetery plots, etc.) owned by the ward on the initial inventory as personal property using the face value of the burial contract, policy, or space in the property description, but includes the resale or surrender value (even if zero) in the estimated value column;
• furnishes the value of the burial assets to the GA for entry into the GOLD financial case record unless upon written notification via email to the GA and the guardianship supervisor, the GS assumes the responsibility;
• secures the policies in a fire-proof cabinet if available;
• reviews and signs pertinent applications for benefits and insurance; and
• scans and attaches copies of policies, applications and property descriptions to the GOLD case record.

Required Procedures – The GA:

• enters the value of burial assets into the GOLD financial case record, unless the GS indicates in writing he or she assumes this responsibility.

Discussion and Relevant Information. Burial properties purchased by the ward using payment plans are inventoried as personal property using the face value of the contract, policy, or space in the property description, but the resale or surrender value (even if zero) is documented in GOLD.

The GS completes applications for benefits and insurance and upon request, the GA or AA may assist in completing such applications. The GS reviews and signs such applications. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the burial assets into GOLD, he or she notifies the GA when it is entered.

References:
Section 4281, Burial – Purchasing a Pre-need, Burial or Cremation Contract or Policy

4281  Burial – Purchasing a Pre-Need, Burial or Cremation Contract or Policy

Policy: The GS shall purchase a pre-need, burial, or cremation contract or policy for the ward's benefit as the ward's circumstances require and his or her finances permit.

Required Procedures – The GS:

• assesses the need to purchase a pre-need contract or policy for burial or cremation by obtaining information about existing policies or contracts;
• assesses the income and resources available to the ward for purchase of a pre-need contract or policy and consults with the supervisor as needed prior to making a purchase decision;
• addresses issues with HHSC Medicaid Eligibility for the Elderly and People with Disabilities (MEPD) staff regarding the impact on Medicaid eligibility of ownership or purchase of burial assets and uses the information obtained to determine how to proceed;
• purchases a pre-need contract or burial policy irrevocably assigned to a funeral home and ensures the policy lists DADS as guardian and the beneficiary;
• verifies the seller of the contract has a permit from the Texas Department of Banking prior to purchase;
• verifies all insurance policies related to a pre-need contract are sold through an agent licensed by the Texas Department of Insurance;
• scans and attaches a copy of any pre-need, burial or cremation contract or policy to the GOLD case record;
• enters the cash value upon written email notification to the GA and guardianship supervisor he or she assumes the responsibility, or notifies the GA if there is a cash value so it can be entered into the GOLD case record; and
• documents contacts and actions taken in the GOLD case record.

Discussion and Relevant Information. Court approval is not required when DADS is guardian of the person only or when DADS or another entity is representative payee, and the funds used for purchase of a pre-need burial policy are federal benefits. Prior to making related decisions, the GS carefully reviews the possible impact on Medicaid eligibility by working with the local HHSC MEPD eligibility staff and consulting with the guardianship supervisor as needed.

The GS lists DADS as the guardian and does not indicate the type of guardianship.

Since policies for pre-need burial contracts must be irrevocable, care should be used when selecting a funeral home. Texas law requires funeral homes receive a permit issued by the Texas Department of Banking. A pre-need contract is not to be purchased from a funeral home which does not possess this permit. The Texas Department of Banking maintains a link to a list of licensed pre-need providers which are approved to do business in Texas. Prior to making a purchase, access the list at the following website: www.banking.state.tx.us/supreglic_ent.asp. Pre-need contracts are normally either funded by a trust account regulated by the Texas Department of Banking on its website or an insurance policy regulated by Texas Department of Insurance. Such policies are sold through agents licensed by the Texas Department of Insurance. A licensed agent may be researched at: www.texasonline.state.tx.us/NASApp/tdi/TdiARManager.

The Texas Funeral Service Commission website is a resource for information on laws governing funerals, complaint procedures involving funerals, licensing aspects of the funeral industry, information on cemeteries and crematories, and general facts about funerals.

The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the cash value into GOLD, he or she notifies the GA when it is entered.

References:
www.banking.state.tx.us/supreglic_ent.asp
www.tfsc.state.tx.us/
www.texasonline.state.tx.us/NASApp/tdi/TdiARManager

4290  Other Financial Issues

4291  Reserved

4292  Real Estate

Policy: The GS shall, after determining the extent of a ward's real property, secure and protect such property and manage the property as the ward's means permit and circumstances require.

Required Procedures – The GS:

• looks for evidence to determine the ward's ownership of real property;
• obtains a copy of the latest deed(s) on real property prior to filing the initial inventory if possible;
• leaves real estate in the ward's name;
• attempts to insure property on which there is a building and documents efforts to obtain insurance;
• notifies the guardianship supervisor when or if insurance companies refuse to insure a structure because it is not occupied (e.g., vacant house, etc.);
• requests the city inspect structures if there is reason to believe they are unsafe and considers the need to remove unsafe structures which may be a source of legal liability;
• considers implications for Medicaid eligibility (e.g., if house is removed, the land is no longer exempt as a homestead, etc.) prior to removing structures;
• consults with the supervisor and regional guardianship attorney and obtains and documents verbal supervisory approval as appropriate;
• obtains a court order allowing removal of a structure;
• furnishes copies of tax appraisals, real estate appraisals or other information indicating value of the real estate to the GA for entry into GOLD unless the GS, upon written email notification to the GA and guardianship supervisor, assumes the responsibility;
• updates real property values at least annually; and
• scans and attaches copies of deeds and related information to the GOLD case record and notifies the GA when the records have been attached.

Discussion and Relevant Information. The GS looks for evidence in the ward's safe deposit box, in the ward's home, from property tax statements, in income tax returns, in other Internal Revenue Service forms, in deed searches and reviews of checks to determine if the ward owns real property (e.g., land, houses, mineral rights, rental property, vacation homes, deeds of trust, life estate interests, remainderman interests, etc.). When possible, a copy of the latest deed should be obtained prior to filing the initial inventory. However, in extenuating circumstances, the deed can be obtained later after filing. If evidence of real property is found but the deed is not located, the GS conducts a deed search through the appropriate county records. Evidence of real property may include:

• county or city property tax statements or federal income tax returns;
• information from family or friends that the ward is owner or part-owner, or heir or part-heir, to property;
• mortgage or royalty statement; or
• copy of a lien, note, or outstanding debt, etc.

The GS does not remove an unsafe structure during a temporary guardianship without consulting with his or her supervisor and the regional guardianship attorney.

The GS requests, as needed, assistance from another DADS employee (i.e., GA, AA, another GS, etc.) with deed searches, correspondence, and obtaining insurance, upon approval of the supervisor. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the real estate into GOLD, he or she notifies the GA when it is entered.

References: N/A

4292.1  Mineral Rights

Policy: The GS shall check to determine whether the ward owns mineral, surface, or mineral and surface rights to a property when ownership is established.

Required Procedures – The GS:

• consults with the regional guardianship attorney, as needed, to make the determination as to whether the ward owns mineral, surface, or mineral and surface rights to a property;
• follows the steps in Section 4292, Real Estate, related to locating and taking possession of real estate, and takes these additional actions when evidence is found indicating the ward is or should be receiving royalties from an oil, gas or mineral company:
• notifies the royalty company of the guardianship, provides a copy of the letters of guardianship, and requests a change of address; and
• has royalties issued to "(Ward's name)" — may indicate DADS as guardian. The GS signs as (name of GS), agent for the guardian, Texas Department of Aging and Disability Services;
• lists the mineral rights in the initial inventory along with other real property;
• consults his or her supervisor and the regional guardianship attorney before accepting a monetary offer from an oil, gas, or mineral company in return for the right to explore the property;
• submits all offers regarding mineral rights to the court for approval (Probate Code §§847-852);
• endorses checks and deposits them into the ward's account if a ward receives oil royalties during a temporary guardianship or a permanent guardianship unless otherwise directed by the guardianship supervisor;
• considers having the royalty checks sent directly to the nursing facility for payment of the ward's bill or deposited into the ward's trust account;
• furnishes information to the GA regarding the value of the mineral rights unless the GS, upon written email notification to the GA and guardianship supervisor, assumes the responsibility to enter asset information into the GOLD case record; and
• scans and attaches copies of contracts, deeds, leases, correspondence and similar information to the GOLD case record and notifies the GA when the information is available in the record.

Discussion and Relevant Information. If the ward owns mineral rights to a property, an oil, gas, or mineral company may approach the GS with a monetary offer in return for the right to explore the property. In most cases, the ward owns surface rights only. The GS consults with the regional guardianship attorney who will determine whether it is necessary to consult with an oil and gas attorney. During a temporary guardianship, if a ward receives oil royalties, notification to the oil, gas or mineral company is not required in order to deposit the check into the ward's account.

The GS considers having royalty checks sent directly to the nursing facility for payment of the ward's bill or deposited into the ward's trust account as appropriate.

The GS requests assistance, as needed, from another DADS employee (i.e., GA, AA, another GS, etc.) with the correspondence upon approval of the supervisor. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the mineral rights into GOLD, he or she notifies the GA when it is entered.

References:
Section 4292, Real Estate
Probate Code §§847-852
Appendix XX, Oil and Mineral Interests

4292.2  Life Estates and Remainderman

Policy: The GS shall provide a copy of the deed to the regional guardianship attorney when it is determined the ward has a life estate or remainderman interest in a property.

Required Procedures – The GS:

• consults with his or her supervisor and the regional guardianship attorney to determine DADS' responsibilities concerning the maintenance of the property, the payment of taxes, the sale of the property, etc.;
• follows the instructions of his or her supervisor and the regional guardianship attorney;
• scans and attaches copies of the deed to the GOLD case record; and
• documents all consultations and actions taken in the GOLD case record.

Discussion and Relevant Information. A ward may have a life estate or remainderman interest in a property. A life estate interest is an interest in property, not amounting to ownership, which is limited by a term of life, either of the person in whom the right is vested or of another person. A remainder is the remnant of an estate in land, depending upon a prior estate in land, arising immediately at the end of the prior estate, thus, a future interest. A remainderman is a person who is entitled to the remnant. For example, when a life estate expires, the person entitled to the land because of this expiration is a remainderman.

References: N/A

4293  Motor Vehicles

Policy: The GS shall locate, take possession of, and secure motor vehicles belonging to the ward.

Required Procedures – The GS:

• obtains titles for the ward's vehicles, (e.g., cars, trucks, motorcycles, boats, campers, and planes, etc.) and leaves titles in the name of the ward;
• secures keys and, if appropriate, applies an immobilizing device (e.g., auto steering wheel lock, etc.) to the vehicle, if the ward is no longer permitted to drive;
• does not allow the motor vehicle to be used except for the ward's benefit;
• keeps vehicles stored when possible (e.g., if there is storage space available on the ward's property, if there are sufficient funds to rent storage space, etc.);
• maintains insurance, renews registrations and inspections, if the vehicles are used, as circumstances permit;
• obtains verbal supervisory approval and court approval in accordance with Section 5832, Application for Sale of Personal Property, and Section 5835, Sale of Motor Vehicles, and sells vehicles which will not be used since they will lose value over time;
• notifies the court if the ward's driving record and/or circumstances change (e.g., deterioration of mental or physical health) requiring restrictions to be placed on his or her driving privileges;
• enters the value of the motor vehicles upon written email notification to the GA and guardianship supervisor, assuming the responsibility, or furnishes the value of the motor vehicles to the GA for entry into the GOLD case record;
• scans and attaches copies of titles, court orders, applications for sale and similar documents to the GOLD case record; and
• documents all consultations and activities in the GOLD case record.

Discussion and Relevant Information. The tax assessor-collector's office can assist the GS when obtaining titles if they are lost or titles are transferred.

A finding of incapacity generally results in the court removing the right for a ward to drive or to actively maintain a vehicle in his or her possession. In those instances where the ward maintains driving privileges, the GS and supervisor must ensure the orders of the court allow this and must maintain at least liability insurance on the vehicle and the driver to ensure both the vehicle and driver are insured. If the ward does not have sufficient funds to pay for liability insurance, the GS, in consultation with the regional guardianship attorney, provides the court with a status update and may request the court review the ward's mental and physical status to determine if it is still in the ward's best interest to permit driving.

It may be to the ward's benefit to maintain vehicles. For example, a vehicle might be required to transport the ward to the doctor or to handle other normal living activities.

The GS requests assistance, as needed, from another DADS employee in obtaining titles and insurance, advertising the vehicle for sale, and responding to inquiries, upon approval of the supervisor. The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the value of the motor vehicles into GOLD, he or she notifies the GA when it is entered.

References:
Section 5832, Application for Sale of Personal Property
Section 5835, Sale of Motor Vehicles

4294  Maintaining and Otherwise Securing Real and Personal Property

Policy: The GS shall make reasonable efforts, as a prudent person would, to maintain and otherwise secure real and personal property of the estate.

Required Procedures – The GS:

• stores valuables in a locked area (e.g., safe deposit box, locked closet, storage vault, etc.);
• labels clothing and other possessions and lists the serial number (on the service plan) of electronic items owned by the ward or purchased for the ward if he or she is in a facility;
• consults with the supervisor and develops a plan to:
  • ensure basic security of the premises including:
    • re-keying and changing locks on the ward's house;
    • installing dead bolts if needed; and
    • locking all doors and windows;
  • clean the interior of the house as circumstances require and arrange for regular maintenance of house and yard (e.g., ensure roof is sound, repair broken windows, etc.) if appropriate; and
  • prepare property for short or long-term vacancy or court-approved sale considering the feasibility of draining pipes, maintaining minimum heat, and other such preventative measures in accordance with the circumstances and the resources of the ward;
• completes the Property Review and Condition Checklist and the Property Acknowledgment to ensure the property is secure and/or transferred within seven calendar days of becoming guardian;
• regularly checks on an unoccupied house quarterly or more frequently as directed by the supervisor:
  • enters an unoccupied house unless there is a significant health or safety risk to verify the condition of the house and the contents;
  • consults with his or her supervisor to determine actions to be taken when entering the property, when doing so creates a significant health and safety risk to the employee, or requests permission not to enter property;
  • follows the directions of his or her supervisor;
  • makes reasonable efforts to take another DADS employee or a reliable witness with them when entering the home; and
  • reports any break-ins, burglaries, or acts of vandalism to local law enforcement and the supervisor;
• files insurance claims as appropriate;
• scans and attaches bills, receipts, correspondence, reports and similar documents to the GOLD case record;
• notifies the supervisor if there are any concerns with the property and/or stored contents; and
• documents visits to the property, consultations with the supervisor, instructions given, and actions taken in the GOLD case record.

Required Procedures – The supervisor:

• reviews the information on the assets and ensures the GS enters and checks on an unoccupied house or visually inspects the contents in storage at least quarterly or more frequently as directed;
• establishes or considers a more frequent schedule for checks if the contents in the house or storage are valued at more than $10,000 or if the property is valued at more than $50,000; and
• ensures the GS documents all visits and the condition of the assets and reports any problems, issues or concerns to the ROM.

Discussion and Relevant Information. In addition to the required procedures, additional steps may be taken if identified by the GS or the supervisor. All additional actions are documented.

Some homes owned by wards may continue to be unsanitary or unhealthy (i.e., contain clutter, have remnants of animal excrement, etc.) even after the guardianship is obtained. These homes pose a health and safety risk to the GS when a visit is required to ensure the home and any remaining contents are secure. The remoteness of the home may also make it difficult for a GS to find a witness when there is cause to enter the home. As guardian, DADS staff must make reasonable efforts to secure property. To the extent the ward has assets or with use of GECS funds, the GS seeks permission to hire persons for entry or clean-up.

If the GS cannot find someone able to accompany him or her to the home as may be required, he or she documents in the case record the removal of any items and what is done with those items (e.g., when electricity is cut off and a refrigerator or freezer must be emptied, etc.). However, physical inventories must be witnessed by another DADS employee.

Reference:
Section 4110, Responsibilities of the Guardianship Specialist (GS) as Guardian of the Estate and Representative Payee
Probate Code §§771 and 772
Property Acknowledgment, Form 5036
Property Review and Condition Checklist, Form 5024

4295  Joint Ownership of Property

Policy: The GS shall determine the ward's ownership of jointly and separately owned property interests and shall inventory, take possession of and manage the property within the ward's status of ownership.

Required Procedures – The GS:

• determines the ward's share of joint property by:
• obtaining copies of documents related to the property; and
• contacting the co-owner and other knowledgeable persons for more information;
• consults with his or her supervisor and the regional guardianship attorney:
• to determine whether property is separate or community property;
• in situations in which the competent spouse is uncooperative;
• to determine the appropriate actions to be taken; and
• if a competent spouse is disqualified or not suitable to serve as community administrator of guardianship, to determine how to request in the guardianship order the exact management and control of the property;
• takes possession of the ward's portion of the property if the ward jointly owns property with someone other than a spouse;
• lists the ward's share of the property in the initial inventory and all accountings for a permanent guardianship and the final accounting for temporary guardianship;
• enters the values in the GOLD case record upon written email notification to the GA and guardianship supervisor assuming the responsibility, or furnishes the values to the GA for entry;
• scans and attaches copies of documents related to the property, deeds, correspondence, similar documents to the GOLD case record;
• notifies the GA when the documents are attached and available for review; and
• documents instructions received from the supervisor and regional guardianship attorney and actions taken in the GOLD case record.

Discussion and Relevant Information. When a person is found incompetent and there is a competent spouse, the spouse is entitled to manage, control and dispose of the entire community estate. The spouse becomes the community administrator of this community property. If the ward has separate property, the court usually appoints the competent spouse guardian of the estate to manage separate property. However, if the competent spouse is found unsuitable or is disqualified to serve as guardian, the court may appoint another person or entity (such as DADS when it applies or agrees to serve) as guardian of the estate. The court normally authorizes DADS as guardian of the estate to manage, control, and with court approval, dispose of:

• property owned separately by the ward (e.g., property which is not community property, etc.); and
• community property under the ward's sole management and control (e.g., Social Security checks, VA benefits, Medicare, Medicaid, etc.).

The court may also require the competent spouse to deliver to the guardian of the estate up to one half of the joint management community property. The spouse retains the right to manage, control, and dispose of his or her own separate property, sole management community property, and no less than one half of the joint management community property. Both separate and community property must be listed in the initial inventory and the final accounting for temporary guardianship. When calculating the ward’s share of the community property, the community property must be divided by two to determine the value of the ward’s portion.

Frequently, wards are joint owners of property with individuals other than their spouse (e.g., sibling, friend, business associate, etc.). It is imperative the GS consult with the regional guardianship attorney so as to not interfere with the joint owner's rights.

The GA is responsible for entering information furnished by the GS unless the GS indicates in writing he or she assumes the responsibility. If the GS chooses to enter the joint ownership value of the property into GOLD, he or she notifies the GA when it is entered.

References:
Section 4238, Joint Ownership of Accounts
Section 4239, Safe Deposit Boxes
Probate Code §§775 and 883

4310  Order of Paying Claims

Policy: The GS shall pay such claims against the estate of the ward which have been allowed or approved by the court or established by suit to the extent the ward's financial means permit.

Required Procedures – The GS:

• consults his or her supervisor and the regional guardianship attorney prior to paying claims;
• works with the regional guardianship attorney to file a response within 30 calendar days of a claim being presented or filed with the clerk using Form 5189, Memorandum of [Allowance] [Rejection of] [Objection to] Claim, when a claim is presented to the guardian or filed with the court;
• pays (in the following order of preference):
  • expenses for the care, maintenance, medical needs, and education of the ward or the ward's dependents (e.g., spouse, minor child, etc.) as specified in the monthly allowance;
  • a claim allowed or approved by the court or established by suit before the death of the ward, if applicable;
  • funeral expenses of the ward and expenses of the ward's last illness;
  • expenses of administration (e.g., payment to a previous guardian, court ordered fees for establishment of the guardianship, etc.);
  • a secured claim (e.g., mortgage payment, car payment, or other claim in which collateral is provided, etc.); and
  • an unsecured claim (e.g., credit card, signature loan, or other claim in which collateral is not provided, etc.);
• obtains court approval to pay funeral expenses for a ward's spouse or dependent according to his or her resources;
• scans and attaches copies of all bills, invoices, and receipts to the GOLD case record;
• notifies the GA information is available; and
• documents payment of all debts in the GOLD financial case record.

Required Procedures – The GA:

• documents payment of debts in the GOLD case record.

Discussion and Relevant Information. Probate Code §805 sets forth the order for payment of claims. The Probate Code also allows an unpaid claimant to formally petition the court for payment as long as payment is not barred by the statute of limitations. According to Civil Practices and Remedies Code §16.004, the statute of limitations for debts is four years. Many debts are covered under this general limitation although other limitations may apply depending on the facts. The regional guardianship attorney assists with questions regarding limitations.

Although a debt is not considered a claim until presented to the guardian or formally filed with the court, guardianship staff refers to Table 4000-4, Payment of Claims, for procedures concerning payment of debts and claims. Debts owed to the United States government are not required to go through the creditor claims process. Debts related to county taxes are also not required to go through the creditor claims process. However, if the county elects to submit a claim, it then must follow the process. It is important to note a debt incurred by the guardian on behalf of the ward after appointment generally is not required to go through the creditor claims process.

Table 4000-4, Payment of Claims

Claims allowed or approved by the court include those identified in Section 5810, Monthly Allowance, and Section 5811, Expenditures of Funds Other Than Monthly Allowance.

If the estate is insolvent, Probate Code §805(b) requires the guardian give first priority to the payment of a claim related to the administration of the guardianship and pay other claims in the order listed above. If the ward receives a windfall, and a debt (less than four years old) was not paid because of lack of funds, the court should be consulted to obtain permission to pay the debt.

The GS may, upon approval of the supervisor, request assistance from another DADS employee in completing and mailing the Insufficient Funds to Repay form, Form 5062.

References:
Section 4310, Order of Paying Claims
Section 5811, Expenditure of Funds Other than Monthly Allowance
Section 5812, Court Approval Not Obtained Prior to Expenditure
Probate Code §§805 and 805(b)
Civil Practice and Remedies Code §16.004
Insufficient Funds to Repay form, Form 5062
Memorandum of [Allowance][Rejection of][Objection to] Claim, Form 5198

4410  Accounts for Aging Out Children (AOC) – General Information.

Certain children aging out of CPS conservatorship have special accounts which were either established prior to or during the time they were in CPS care. In order to determine assets which an AOC may have, the GS talks to the regional CPS SSI Coordinator, because the CPS caseworker may not be aware of all assets.

Types of assets the AOC may have include, but are not limited to:

• a savings account, if funds are less than $1000;
• a "dedicated account" for an SSI lump sum. If the child's funds are equal to or greater than six times the monthly SSI benefit, a dedicated account is required by law to be established to prevent the child from being disqualified for SSI; or
• a trust. The trust may have been established by DFPS to prevent the child from becoming ineligible for SSI or foster care or by another entity, for example, as compensation for a personal injury. If the GS determines the child has one of these accounts, he or she follows the procedures outlined in this section, depending on the type of account.

Savings account. If a savings account is located, the GS follows the procedures under Section 4232, Re-Titling or Setting up Bank Accounts, once DADS is appointed as guardian of the estate.

Trust. Procedures for addressing trusts are found in Section 4240, Trusts.

4420  Determination of Benefits

Policy: The GS shall ensure benefits for an aging-out-child (AOC) are handled in accordance with the information in the following table, Table 4000-5, Requirements for Controlling Benefits.

Required Procedures – The GS:

• contacts the SSI Coordinator in the region covering the county of conservatorship of the child according to Section 4410, Accounts for Aging Out Children (AOC), or requests the GA to make the contact;
• notifies the SSI Coordinator of the assigned GS' names and consults with the SSI Coordinator to determine actions needed to be performed by guardianship staff;
• runs or requests the Administrative Assistant (AA) to run a Wired Third Party Query (WTPY) check of the Social Security records monthly if the ward has SSI benefits under the child definitions to confirm whether SSA has conducted an Adult Eligibility Review and documents the outcome of the review;
• notifies the guardianship supervisor when a change in benefit status is noted; and
• documents the consultations and actions in the GOLD case record.

Discussion and Relevant Information. On-going benefits as referenced above are payments made under a social insurance program administered by the Social Security Administration and are paid monthly by check or direct deposit to the beneficiary or to a representative payee if the beneficiary is incapable of managing his or her own funds (Social Security Handbook §125.1). DADS may become guardian of an aging out child who is receiving SSI under the child definitions. The Social Security Administration will conduct an Adult Eligibility Review at some point after the 18th birthday. In that event, DADS closely monitors the status with SSA. Should the Adult Eligibility Review and reasonable appeal find the ward not eligible for SSI under the adult definitions, DADS will resign as guardian.

The following table outlines the requirements established by both the Social Security Administration (SSA) and DADS regarding who controls the different types of benefits. For example, the SSA requires the Representative Payee to control or be responsible for on-going benefits while DADS requires the staff to be responsible for those benefits when DADS is Guardian of the Person.

Table 4000-5, Requirements for Controlling Benefits

References:
Section 4410, Accounts for Aging Out Children (AOC) – General Information
Social Security Handbook §125.1

4430  Planning Control of Benefits

Policy: The GS shall coordinate with the CPS staff when arranging control of ongoing benefits, savings, and dedicated accounts in AOC cases.

Required Procedures – The GS:

• consults the following table to determine the appropriate action to be taken.

Table 4000-6, CPS/DADS Actions

Discussion and Relevant Information. DADS guardianship staff do not request the residential care provider to apply to become representative payee if the ward has a dedicated account. Because of the special rules governing dedicated accounts, DADS retains representative payee status. DADS guardianship staff requests the residential care provider to apply to become representative payee when the ward has ongoing benefits and/or a savings account of $2000 or less, the source of which is SSA benefits, except in those cases where CPS remains representative payee until the AOC completes school, and except when there are extenuating circumstances which have been approved by the guardianship supervisor in consultation with the ROM. Consultations and approvals are documented in the case record. The GS ensures copies of any applications or related information are attached to the GOLD case record.

References:
Section 4236, Placement Trust Accounts

4440  Representative Payee Application Procedures for AOC – General Information.

Becoming a representative payee for an AOC requires joint efforts by the DADS guardianship staff and the CPS staff. It is important for the GS to notify the guardianship supervisor of unresolved issues affecting the representative payee status of AOC cases so the supervisor can coordinate with the CPS Supervisor to resolve them.

4450  Representative Payee Application Procedures by DADS

Policy: The GS shall make application for DADS to become the representative payee for a ward when the need is identified based on the table in Section 4430, Planning Control of Benefits.

Required Procedures – The GS:

• completes the Notification to DFPS SSI Coordinator, Form 5078, and sends it to the SSI Coordinator within 30 calendar days of completion of schooling by the AOC;
• completes and mails the following to the SSA contact person or office currently managing the case:
• the Social Security Administration – Representative Payee Status, Form 5056;
• a certified copy of the letters of guardianship, and
• a copy of the Physician's Certificate of Medical Examination (CME) or the Determination of Mental Retardation (DMR);
• sets up a trust account with the residential care provider for the ward's personal needs allowance;
• sets up a bank account according to procedures in Section 4232, Re-Titling or Setting Up Bank Accounts, and deposits the check;
• completes the next annual accounting to SSA when due, after obtaining input from CPS as to CPS activities during the accounting period;
• scans and attaches a copy of the application to become rep payee and any related correspondence to the GOLD case record; and
• documents all actions taken in the GOLD case record.

Required Procedures – The GA:

• assists the GS upon receiving a written request for assistance;
• notifies his or her supervisor if unable to complete the tasks;
• coordinates and consults with the GS as required; and
• documents all pertinent actions in the GOLD case record.

Discussion and Relevant Information. When a DADS ward is in extended foster care, CPS receives the SSI payments to offset cost of services. Monies received for the month the ward ages out of care are not returned to the SSA. However, if an SSI check is received for the following month, the check is returned to the SSA and then reissued to a new representative payee. It is essential the GS asks the new provider to file for representative payee status as soon as it becomes known the AOC will be moving to ensure there is no delay in payment. Otherwise, the GS will need to work with the new provider regarding their willingness to accept delayed payment. If the provider refuses to accept such delay in payment, the GS and the supervisor should consult with the ROM or the UMPPD to resolve the issue. If the ward will be living in a different area once guardianship is established, the former SSA office commonly transfers the case to the SSA office serving the area where the ward now lives.

The CPS SSI coordinator is responsible for working with the SSA regarding SSI payments until such time as the ward ages out of extended foster care or extended foster care benefits are otherwise terminated. At the conclusion of the foster care, the GS contacts the SSI coordinator and arranges for the return of any savings funds for the benefit of the ward to SSA to be distributed to the new rep payee.

If there is a need for funds from the savings account during the time the ward is in extended foster care, the GS consults with the SSI coordinator to effect payment. Any problems or issues which arise regarding payments should be discussed with the guardianship supervisor. The guardianship supervisor will either provide direction or may choose to work directly with the SSI coordinator to resolve the issues.

The GS makes efforts to utilize the assistance of the GA as much as possible and reasonable to do so in performing financial-related tasks. The GS may request assistance from another DADS employee to handle tasks related to these matters upon approval of the supervisor.

References:
Section 4430, Planning Control of Benefits
Section 4232, Re-Titling or Setting Up Bank Accounts
Notification to DFPS SSI Coordinator Form, Form 5078
Social Security Administration – Representative Payee Status Form, Form 5056

4460  Representative Payee Application Procedures for the Residential Care Provider

Policy: The GS shall coordinate with the SSI Coordinator and the residential care provider when a residential care provider is applying to become representative payee in accordance with the table in Section 4430, Planning Control of Benefits.

Required Procedures – The GS:

• completes the Notification to DFPS SSI Coordinator, Form 5078, and sends it to the SSI Coordinator;
• requests the residential care provider apply to become representative payee;
• sets up a trust account with the residential care provider for the personal needs allowance once the residential provider is designated as representative payee; and
• scans and attaches a copy of Form 5078 to the GOLD case record.

Discussion and Relevant Information. The joint responsibilities coordinated by the GS and the SSI Coordinator are consistent with those found in Section 4440, Representative Payee Application Procedures for AOC – General Information. The GS should work closely with the SSI coordinator to ensure a smooth transfer of any funds CPS holds for the benefit of the ward to the new representative payee.

References:
Section 4430, Planning Control of Benefits
Section 4440, Representative Payee Application Procedures for AOC – General Information
Notification to DFPS SSI Coordinator Form, Form 5078

4470  Procedures for Dedicated Accounts

Policy: The GS shall contact and work with the CPS program specialist who manages dedicated accounts when handling matters related to those accounts.

Required Procedures – The GS:

• obtains written permission from SSA for a specific expenditure;
• scans and attaches a copy of the written permission to the GOLD case record;
• forwards the following information to the CPS program specialist who manages dedicated accounts:
• the statement from SSA approving the specific expenditure;
• the name and addresses of the business from which the item or services are to be purchased; and
• the exact amount of the purchase;
• makes a written request to the CPS program specialist to arrange for payment to the provider of the goods or services;
• coordinates joint responsibilities with the CPS program specialist to handle dedicated accounts; and
• notifies the CPS-DDS of the actions being taken.

Discussion and Relevant Information. Certain lump sum SSI benefits received after 1995 are required by law to be placed in a dedicated account in order to prevent disqualification from Medicaid. A financial institution in Austin retains dedicated accounts for DFPS. Although a CPS program specialist oversees the dedicated accounts, they are managed by the DFPS state office accounting division.

The CPS Program Specialist who oversees the dedicated accounts may be contacted at:

Appendix I, Examples of Appropriate and Inappropriate Items and Services to Purchase from Dedicated Accounts, contains a list of approved expenditures from a dedicated account. Some expenditures are prohibited by law.

References:
Appendix I, Examples of Appropriate and Inappropriate Items and Services to Purchase from Dedicated Accounts

4510  Hiring Experts to Manage the Estate

Policy: The GS shall follow applicable tax and other related employment laws when hiring experts to manage an estate and monitor closely the work done by experts hired to manage the estate of a ward.

Required Procedures – The GS:

Before Hiring an Estate Manager

• obtains at least three telephone or written bids for services based on per hour or per job rates;
• ensures the expert is bonded or licensed or certified;
• selects an expert:
• who charges fees comparable to those charged by other experts in the area providing the same service; and
• with whom the GS or his or her chain of command has no perceived or real conflicts of interests in accordance with Section 4520, Selecting Service Providers;
• requests a criminal history check as outlined in Section 1720, Requesting a Criminal History Check, if the individual will have unsupervised access to the ward;
• consults with the supervisor as needed;
• checks the Better Business Bureau, as appropriate;
• obtains court approval before entering into any agreement or paying the expert;
• scans and attaches copies of bids or bid information, results of criminal history checks and other relevant information to the GOLD case record; and
• documents pertinent information in the GOLD case record.

After Hiring an Estate Manager

• completes the Contract for Employment, Form 5120;
• requests monthly financial statements from the expert;
• scans and attaches a copy of the monthly financial statement and the Contract for Employment to the GOLD case record;
• notifies the GA when a statement has been attached; and
• monitors to ensure the services contracted for are provided by the expert and are of good quality.

Discussion and Relevant Information. Examples of estate managers include, but are not limited to:

• realtors who manage rental property;
• attorneys with expertise in law related to mineral rights, real estate, tax law, or other subjects beyond the legal expertise of the DADS regional guardianship attorney and whose counsel is needed for proper management of the ward's estate; and
• private accountants hired to complete annual and final accountings, collect income and make disbursements, manage investments, and perform other similar functions.

When hiring an attorney, a contract for employment includes language stating the contracted services include the provision of expert witness testimony in court for the benefit of the ward when required.

When hiring realtors and private accountants on a one-time basis, for example, to sell a house or complete tax forms, background and criminal history checks are not required unless the individual is to have unsupervised access to the ward. The same applies to attorneys. It is unlikely an attorney would come into contact with the ward except for court situations. Attorneys receive FBI checks at licensure and can be disbarred for certain criminal convictions.

The GS requests assistance, as needed, from another DADS employee (i.e., GA, AA, another GS, etc.) in obtaining bids, as well as evidence of certification, licensing or bonding of experts considered and in monitoring to ensure contracted services are provided to the ward, upon approval of the supervisor.

References:
Section 1720, Requesting a Criminal History Check
Section 4520, Selecting Service Providers
Contract for Employment, Form 5120

4520  Selecting Professionals

Policy: The GS shall act prudently and avoid any appearance of impropriety when selecting professionals (e.g., realtors, private accountants, physicians, psychologists, attorneys, repairmen, etc.) to provide services or to handle affairs relating to the ward's person or estate.

Required Procedures – The GS:

• checks to ensure the service provider:
• has the appropriate license, certification, and/or bonding;
• charges fees comparable to those charged by other service providers in the area for the same service; and
• is in good standing with the local Better Business Bureau, if applicable;
• seeks the preferences of the ward to the extent possible and hires a service provider with whom the GS has no potential conflict of interest and with whom the GS has no personal relationship of any kind, if the ward does not have or is unable to give a preference;
• hires persons or business persons previously used by the ward, to the extent possible;
• requests a criminal history check as found in Section 1720, Requesting a Criminal History Check, prior to using a service provider if the service provider will have unsupervised access with the ward;
• attaches a copy of the criminal history results, contracts, bid proposals, court orders, and any reference checks to the GOLD case record;
• consults with the supervisor, as needed; and
• obtains court approval before signing a contract with a service provider.

Discussion and Relevant Information. There is a conflict of interest with those who have close ties or relationships with the GS (e.g., family members related by blood or marriage, significant others, friends or close acquaintances, etc.). The GS avoids using such individuals to provide services to the ward. In addition, the GS makes reasonable efforts to use a variety of service providers, so the GS avoids the perception of attempting to financially benefit from using the services of one person or entity.

The GS requests assistance, as needed, from another DADS employee (i.e., GA, AA, another GS, etc.) with verifying the appropriate licensing or bonding and with checking comparable fees for services, upon approval of the supervisor.

References:
Section 1720, Requesting a Criminal History Check

4530  Hiring Private Assistants in the Ward's Home

Policy: The GS shall act prudently and avoid even the appearance of impropriety when hiring private assistants to provide in-home care for the ward.

Required Procedures – The GS:

When arranging services for the ward in his or her home:

• attempts to secure the services through an independent agency or contractor, such as a home health agency, housekeeping service, or lawn care service;
• considers hiring a private individual to provide care for the ward when there is no agency or contractor available to provide services;
• hires a private individual only as a last resort when other options have been exhausted and the guardianship supervisor has approved the hiring;
• consults with state office staff to ensure federal requirements are met;
• obtains court approval before signing a contract with a private individual;
• scans and attaches copies of court orders, bid proposals, contracts and relevant information to the GOLD case record; and
• documents all actions in the GOLD case record.

If no agency or contractor is available to provide the type of care the ward needs, for example 24-hour care in the home – The GS:

• interviews and hires a private individual only if there are no other options available, because of complex federal requirements required of employers;
• consults with state office program staff to ensure federal requirements are met when hiring a private individual; and
• documents all consultations and actions in the GOLD case record.

GS Responsibilities When Hiring a Private Assistant – The GS:

• takes extreme care when hiring a private individual;
• requests a criminal background check as outlined in Section 1720, Requesting a Criminal History Check, and does not hire an individual convicted of crimes as indicated in the check or otherwise known;
• does not hire an individual, if in the course of reviewing the ward's case record, determines the individual is an alleged or designated perpetrator;
• checks at least two references provided by the individual, including a former employer by personally speaking with the references and discusses the character and performance of the proposed employee, the contents of the reference letter (if one is provided), etc.;
• explains the following financial information to the proposed provider:
• he or she is to be employed by the ward's estate and not by DADS;
• Social Security and Medicare taxes are to be withheld out of his or her wages and sent to the IRS if his or her income during the calendar year is greater than or equal to $1,000 (Section 4550, Payment of Wages);
• Income taxes are not to be withheld;
• Federal Unemployment Tax Authority (FUTA) taxes must be paid on the first $7,000 of wages paid once income becomes greater than or equal to $1,000 during the calendar year; and
• the private assistant's duties and the hours he or she is to work;
• contacts the Federal Unemployment Tax Authority to obtain a FUTA form for an initial fee which is paid out of the ward's estate. Thereafter, the form is sent to the GS every quarter;
• follows federal and state wage and hour rules. If the proposed salary exceeds minimum wages, the GS ensures the salary is comparable to what is paid to other private individuals in the area performing the same types of services. If the employee is living with the ward and providing 24-hour care, the GS pays the salary for a 40-hour week; room and board are payment for the remainder of time. Withholding of Social Security taxes and FUTA is based on the cash income payment only. The value of room and board is not considered;
• consults with the supervisor before hiring the individual;
• obtains court approval before signing a contract with a private caregiver;
• completes the Contract for Employment, Form 5120;
• makes monthly regular unannounced visits to the home to ensure that the private assistant is present during the times he or she is supposed to be and is performing the agreed-upon duties;
• takes other measures to ensure the ward is getting the best care possible;
• scans and attaches copies of the criminal history checks, court orders, reference checks and other relevant information to the GOLD case record; and
• documents pertinent information in the GOLD case record.

Discussion and Relevant Information. The GS exercises due diligence when considering the employment of private assistants on behalf of the ward because of complex requirements governing such employment and because of the vulnerability of the ward.

References:
Section 1720, Requesting a Criminal History Check
Section 4550, Payment of Wages
Contract for Employment, Form 5120

4540  Verification of Employability

Policy: The GS shall verify the eligibility of an individual to provide care or work in the ward's home.

Required Procedures – The GS:

• verifies the prospective employee can legally work in the United States by reviewing:
• birth certificate, driver's license, or passport; and
• Department of Homeland Security Form I-9, Employment Eligibility Verification;
• scans and attaches a copy of one of the above listed documents and the I-9 form in the ward's GOLD case record and paper financial file;
• scans and attaches a copy of the employee's Social Security card to the GOLD case record; and
• pays Social Security taxes in accordance with IRS guidelines.

Discussion and Relevant Information. Hiring an individual without obtaining Department of Homeland Security Form I-9, Employment Eligibility Verification, may result in a large fine.

References:
www.uscis.gov/files/form/I-9.pdf

4550  Payment of Wages

Policy: The GS shall ensure all compensation is paid in accordance with federal wage and hour laws and shall pay Social Security taxes in accordance with IRS guidelines.

Required Procedures – The GS:

• applies to the IRS for an employer identification number (EIN) using IRS Form SS-4;
• completes IRS Forms W-2 and W-3;
• gives the completed Form W-2 to the employee and sends the completed Form W-3 to the Social Security Administration (SSA) by January 31st of the year following the calendar year of employment;
• contacts state office program staff for instructions if it appears the employee may be eligible for Earned Income Credit (EIC) for any year;
• scans and attaches copies of all files, W-2 and W-3 forms and other related information to the GOLD case record; and
• documents pertinent information in the GOLD case record.

Discussion and Relevant Information. The Social Security number, exactly as it appears on the Social Security card, is needed for tax purposes.

Form W-2 and Form W-3 can be obtained from the IRS. An example illustrating the use of Form W-2 and Form W-3 follows:

If the employee worked for the months of May through October of 2006 and received and income greater than $1,000, the GS gives Form W-2 to the employee and sends Form W-3 to the SSA by January 31, 2007.

According to IRS guidelines, if the estate's employee works on a regular basis, Social Security and Medicare taxes must be paid on the employee. The estate is liable for half of the Medicare and Social Security taxes. IRS Form 1040, Schedule H, is used for calculating withholding Social Security and Medicare taxes. Although the GS hires a tax expert to prepare and file the taxes, the GS must instruct the tax expert to address only the pertinent Social Security and Medicare withholding taxes due for the employee. The employee is responsible for paying his or her own income taxes for the tax period.

Estate employees for whom Social Security and Medicare taxes must be paid include private housekeepers or providers who work on a regular basis and who are not employed by an outside agency. If the individual is employed by an outside agency, such as a home health agency or housekeeping service, the agency pays taxes on the individual and the GS does not do so. The GS also does not pay taxes on an individual who is not employed on a regular basis nor is an independent contractor, such as an individual who mows the lawn, a repairman, a person who provides occasional transportation, a person hired to do heavy cleaning for a day, etc. The guardianship supervisor should contact state office program staff with questions about whether or not Social Security taxes need to be paid on a particular employee.

References:
IRS Form W-2 and W-3

4560  Taxes – General Information.

As Guardian of the Estate (GOE), it is the responsibility of DADS to ensure the ward's federal, state, county, and local taxes are paid as the ward's funds permit. In those instances where there is a tax liability and there are no funds available for payment, it is imperative the legal advice and counsel of the regional guardianship attorney be sought. It is equally imperative DADS works with the taxing authority to resolve the issues.

4570  Federal Income Taxes

Policy: The GS shall determine the ward's tax status by contacting the Internal Revenue Service (IRS) within 30 calendar days of qualification of DADS as guardian of estate and ensure payment of the ward's taxes by the statutory due date.

Policy: The GS shall arrange for the filing of the ward's income tax returns annually by April 15th, according to IRS guidelines, when DADS is guardian of the estate.

Required Procedures – The GS:

• contacts the IRS for the purpose of:
• notifying the IRS of the guardianship, providing them with a copy of the letters of guardianship, and requesting future correspondence be forwarded to the GS;
• determining whether taxes are owed;
• obtaining transcripts of prior years' IRS tax if copies cannot be found among the ward's possessions; and
• determining the income limits required for filing. If taxes are due, the GS uses:
• a volunteer tax service; or
• a private accountant or tax service and pays the fees out of the ward's estate, if the ward has sufficient funds. (For taxes related to estate employees, see Section 4530, Hiring Private Assistants in the Ward's Home);
• consults with the guardianship supervisor and regional guardianship attorney as appropriate if there are taxes due and the ward has no funds;
• consults with state office program staff as needed and directed by the guardianship supervisor;
• writes a letter of explanation to the IRS if a ward has insufficient funds to pay taxes;
• requests any checks due to the ward from the IRS be directly deposited into the ward's checking or savings account if available or has the refund mailed if the facility is payee but DADS manages the estate;
• scans and attaches copies of all correspondence, tax returns, bills and checks to the GOLD case record; and
• documents consultations and instructions given in the GOLD case record.

Discussion and Relevant Information. Various resources are available to assist in determining an individual's tax status. The GS uses the letter to Internal Revenue Services, Form 5054, and modifies as needed for use with other taxing entities, as appropriate. The GS may also submit IRS Form 56, Notice Concerning Fiduciary Relationship, and attach the above-referenced letter.

There is no charge for requesting "transcripts" from IRS. However, IRS charges a fee for "copies." Reviewing previous tax information is a valuable means of determining the assets of the ward. A basic rule of thumb is to request up to three years of transcripts, since a normal period for an audit is three years from the tax year or date of filing. Requesting transcripts allows the GS to determine if the ward did not file returns for the years requested. When requesting transcripts from the Internal Revenue Service, staff may use Form 4506-T, located at http://www.irs.gov/pub/irs-pdf/f4506t.pdf.

Temporary Guardianship. If taxes are due during a temporary guardianship, the GS completes steps outlined in required procedures and pays the taxes by the due date. Payment of taxes does not require pre-approval from the court.

The GS arranges for the filing of an income tax return during a temporary guardianship only if income taxes are due at the time of the guardianship. The GS makes every effort to arrange for filing the tax return by April 15th. However, in extenuating circumstances and with supervisory approval, the GS files IRS Form 4868 requesting an extension. The extension grants six extra months to file and pay the tax; however, interest is charged by the IRS from the original due date of the return on unpaid tax.

The GS requests, as needed, assistance from another DADS employee (i.e., GA, AA, another GS, etc.) in:

• writing a letter of explanation to IRS if the ward has insufficient funds to pay the tax;
• arranging for the preparation of tax returns by the appropriate entity; or
• providing needed financial documentation.

There may be occasions when there are income taxes due or a return is due to the ward and there is no Guardian of the Estate to file the tax returns. On those occasions, it may be appropriate for DADS to file the return or arrange for a volunteer to assist. Consult with state office management for guidance in those situations. If the GS desires to use an on-line software program for filing taxes, they must get the approval of the supervisor.

Two programs offering tax help assistance include VITA (Volunteer Income Tax Assistance Program) and TCE (Tax Counseling for the Elderly). The VITA Program offers free tax help to low-to-moderate income (generally, $39,000 and below) persons who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. The nearest VITA site is located by calling 1-800-829-1040.

The TCE Program provides free tax help to people age 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations which receive grants from the IRS.

As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,400 sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer-counselors help people of low-to-middle income with special attention to those aged 60 or older.

More information on TCE is available by calling 1-800-829-1040. The nearest AARP Tax-Aide site is located by calling 1-888-227-7669 or visiting the AARP-TaxAide site.

Source: IRS website

References:
Section 4530, Hiring Private Assistants in the Ward's Home
IRS Form 4868

4580  Local Taxes

Policy: The GS shall arrange for payment of county, school, property, and other taxes as the ward's funds permit and shall claim appropriate exemptions when DADS is guardian of the estate.

Required Procedures – The GS:

• contacts local taxing authorities for the purpose of:
• notifying the taxing entities of the guardianship, providing them with a copy of the letters of guardianship, and requesting future correspondence be forwarded to the GS;
• determining whether taxes are owed; and
• obtaining copies of tax assessments of property, if copies cannot be found among the ward's possessions;
• requests appropriate exemptions for which the ward may qualify;
• claims a deferral of payment of present and future taxes, if appropriate;
• consults with the guardianship supervisor and the regional guardianship attorney to determine if an abatement of a tax lawsuit should be obtained on behalf of someone 65 years or older, or when funds are not available to pay required taxes;
• pays local taxes during a temporary guardianship only if taxes are due at the time of the guardianship;
• scans and attaches copies of all correspondence, tax statements, bills, receipts and related information to the GOLD case record; and
• documents consultations and instructions given in the GOLD case record.

Discussion and Relevant Information. Various resources are available to assist in determining an individual's tax status such as reviewing county records, doing an electronic database search, reviewing old bank statements and Internal Revenue Statements, etc. There often are assorted tax exemptions available to reduce the total amount of tax to include:

• to homeowners who are 65 years or older;
• to homeowners who are disabled; and
• for a declared homestead.

The GS consults with tax experts or the tax appraisal office as needed to identify possible exemptions. Failure to claim exemptions for which the ward is entitled can result in liability by the guardian to the ward's estate.

A deferral of payment of present and future taxes may be claimed and/or an abatement of a tax lawsuit may be obtained on behalf of someone 65 years or older. Deferral means taxes are due at the ward's death or at the sale of the property, whichever occurs first. The GS claims deferral and abatement, as needed, if the ward has insufficient funds to pay the taxes.

References: N/A

4710  Final Debts

Policy: The GS shall pay final debts as allowable by statute, shall obtain necessary court approvals and shall obtain ratification if needed in accordance with the Probate Code.

Required Procedures – The GS:

• consults with the supervisor and the regional guardianship attorney to determine whether court approval is needed prior to paying final debts other than those listed under Discussion and Relevant Information;
• obtains prior court approval if instructed to do so by the guardianship supervisor and follows other instructions given to them by the supervisor or the regional guardianship attorney;
• informs the court of the payment of the final debts in the final accounting and requests approval (ratification) of debts not previously approved;
• scans and attaches copies of verification of expenditures to the GOLD case record within 10 calendar days of the transaction;
• notifies the GA when the copies have been attached; and
• documents all consultations in the GOLD case record.

Court Approval. Generally a court will approve expenditures of funds from the deceased ward's estate to make funeral arrangements. DADS policy regarding application to the judge to expend funds for funeral arrangements is found below.

Required Procedures – The GS:

• obtains prior verbal approval from his or her supervisor and the court prior to the expenditure of funds for the funeral if the ward does not have a pre-need burial policy;
• reviews and follows the court's requirements and if necessary seeks court approval;
• submits an Application to Ratify Expenditure of Funds, Form 5104, to the regional guardianship attorney before submitting it to the court for approval, after receiving prior verbal supervisory and court approval for expenditure of funds from the ward's estate and expenditure of the funds;
• scans and attaches file-stamped copies of court documents such as motions or orders, receipts, bills and statements, and other similar information to the GOLD case record; and
• notifies the GA when copies have been attached to the GOLD case record.

Discussion and Relevant Information. The GS pays certain final debts of the deceased ward without obtaining the prior approval of the court. These debts include:

• the expenses of the final illness;
• bills related to the care and maintenance of the ward prior to his or her death;
• taxes; and
• funeral expenses.

The GS may, if time allows, get a written motion quickly approved which would be a motion to expend funds. Otherwise, he or she pays the final expenses and then seeks court ratification. Copies of all statements, bills and invoices must be scanned and attached to the GOLD case record.

References:
Probate Code §§ 746, 805
Application to Ratify Expenditure of Funds, Form 5104

4720  Distribution of Property

Policy: The GS shall distribute the property according to program guidelines when a DADS guardianship of the estate is terminated due to the death of a ward, the appointment of a successor guardian or the restoration of the ward's capacity.

Required Procedures – The GS:

• distributes the property of a ward in accordance with the guidelines set forth in Table 4000-7, Distribution of Property.

Table 4000-7, Distribution of Property

Discussion and Relevant Information. Distribution of property including funds and payment of debts is documented in the case record and the information furnished to the GA and the regional guardianship attorney. Depending on the preference of the court, an application to appoint an administrator may be necessary to distribute property to heirs.

Under Social Security Administration (SSA) regulations and facility rules, upon death of a recipient of SSA benefits, a rep payee, including a facility rep payee, is required to keep remaining funds (already paid and recipient entitled based on when death occurred) in a separate account, until a legally entitled person claims them or they escheat to the comptroller, or to turn these funds over to a guardian of the estate (GOE). If there is a GOE, including DADS, a facility/representative payee has this option and usually prefers it to maintaining a separate account for deceased residents. The GOE must then handle such actions in the final accounting.

References:
Section 4310, Order of Paying Claims
Section 4710, Final Debts
Section 3450, Disposition of Personal Property
12 Code of Federal Regulations (CFR) Section 210
Property Acknowledgment, Form 5036
Property Review and Condition Checklist, Form 5024
Receipts and Release, Form 5188

4730  Final Duties of Guardian of Estate

Policy: The GS shall ensure required procedures are followed in the event the guardianship of estate is to be terminated due to exhaustion of the estate, the death of the ward, restoration of capacity of a ward, appointment of another party as permanent or successor guardian, or expiration of a temporary guardianship, unless required sooner by the court.

Required Procedures – The GS:

Exhaustion of Estate

• prepares and files the Final Account as outlined in Section 5890, Account for Final Settlement, and the Application to Close the Guardianship of Estate and Discharge the Guardian of the Estate only within 60 calendar days of the date the estate was exhausted unless an extension is received from the supervisor;
• obtains a copy of the order signed by the judge discharging DADS as guardian;
• scans and attaches a file stamped copy of the order to close the case to the GOLD case record; and
• completes the documentation in the GOLD case record.

Death of Ward

• no later than the next working day after the death of a ward, notifies his or her supervisor, the court either verbally, in which case a follow-up Notice of Death of Ward, Form 5043, is furnished to the court, or in writing, and the ward's family (if applicable);
• ensures funeral arrangements are made if DADS is also guardian of person, or if there is a different guardian of person, coordinates funeral arrangements with the guardian of the person, accesses the burial policy, if available, and authorizes the expenditure of funds, subject to court approval, for burial expenses;
• notifies life insurance companies of the ward's death (Section 4272, Life Insurance Policies) enclosing a copy of the death certificate or if there was a beneficiary may ask the beneficiary to do so;
• files a Final Account as outlined in Section 5890, Account for Final Settlement, no later than 60 calendar days of the date of death unless an extension is received from the supervisor and the extension is documented in GOLD;
• files the Application to Close the Guardianship of the Estate and Discharge the Guardian of the Estate no later than 30 calendar days from the date the court approves the Account for Final Settlement;
• delivers property of the estate as outlined in Section 4720, Distribution of Property;
• ensures applicable requirements set forth in Section 3000, Overview of Case Management and Guardian of the Person, are followed if DADS is also guardian of the person;
• obtains a copy of the order signed by the judge discharging DADS as guardian;
• scans and attaches file stamped copies of all court orders, death certificates, correspondence, final accountings, and insurance policies to the GOLD case record; and
• completes the documentation in GOLD to close the case.

Restoration of Capacity

• files a Final Account as outlined in Section 5890, Account for Final Settlement, and the Application to Close the guardianship of the estate and discharge the guardian of the estate within 60 calendar days of the date of the restoration of capacity of the ward unless an extension is received from the supervisor;
• delivers property of the estate as outlined in Section 4720, Distribution of Property;
• ensures applicable requirements set forth in Section 3000, Case Management and Guardian of the Person, are followed if DADS is also guardian of the person;
• ensures the completed Property Review and Condition Checklist, signed Property Acknowledgment and receipt are attached to the GOLD case record;
• prepares and files the Final Account as outlined in Section 5890, Account for Final Settlement, and the Application to Close the Guardianship of Estate and Discharge the Guardian of the Estate only within 60 calendar days of the date the estate was exhausted unless an extension is received from the supervisor;
• obtains a copy of the order signed by the judge discharging DADS as guardian;
• scans and attaches file stamped copies of all court orders including the order discharging DADS as the guardian, final accountings, receipts for property (Form 5188) , and related to the GOLD case record; and
• completes the documentation in the GOLD case record.

Appointment of Another Party As Permanent or Successor Guardian of the Estate or Expiration of a Temporary Guardianship of the Estate

• follows the steps outlined in "Restoration of Capacity" above;
• completes the Property Acknowledgment and Property Review and Condition Checklist and receipt and seeks the participation of the permanent or successor guardian in a visual inspection of the property and/or assets;
• obtains the signature of the permanent or successor GOE on the Property Acknowledgment;
• delivers property of the estate as outlined in Section 4720, Distribution of Property;
• ensures applicable requirements set forth in Section 3000, Case Management and Guardian of the Person, are followed if DADS is also guardian of the person;
• obtains a copy of the order signed by the judge discharging DADS as guardian;
• scans and attaches file-stamped copies of all court orders, final accountings, receipts for property (Form 5188), and related information to the GOLD case record;
• ensures the completed Property Review and Condition Checklist, signed Property Acknowledgment and receipt are attached to the GOLD case record;
• prepares and files the Final Account as outlined in Section 5890, Account for Final Settlement, and the Application to Close the Guardianship of Estate and Discharge the Guardian of the Estate only within 60 calendar days of the date the estate was exhausted unless an extension is received from the supervisor;
• obtains a copy of the order signed by the judge discharging DADS as guardian;
• scans and attaches a file stamped copy of the order to close the case to the GOLD case record; and
• completes the documentation in the GOLD case record.

Discussion and Relevant Information. In the event the ward is indigent at the time of death, state law requires the county furnish sufficient funding to pay for the ward's final arrangements (H&SC §694.002).

If a beneficiary was named in a life insurance policy, the funds provided by the policy pass outside the court, directly to the beneficiary and are not available for burial funds. These funds are not included in the account for final settlement. On the other hand, if the estate is named as the beneficiary or if the beneficiary dies before the ward (e.g., a former spouse, etc.) the funds pass through the court to the decedent's estate, which is not the same as the guardianship estate. The insurance funds are mentioned in the other facts necessary in the account for final settlement but not included in the totals. The insurance company pays those funds to the executor or administrator of the decedent's estate.

If there is no executor or administrator, and the court orders the guardian to distribute assets to the heirs and orders payment of the insurance proceeds to the guardian, the funds are included in the account for final settlement. If the beneficiary dies after the insured ward's death, but before payment of the funds, the funds pass directly to the beneficiary's estate and are not included in the account for final settlement. Capacity may be restored due to a significant change in the ward's condition or circumstances which upon assessment appear to have permanently resolved the problem. When notifying the court in writing of the death of a ward, the GS may use the Notice of Death of Ward form. If a successor guardian is appointed, the procedures outlined in Section 3420, Successor Guardian, are followed.

References:
Section 3420, Successor Guardian
Section 5890, Account for Final Settlement
Section 4272, Life Insurance Policies
Section 3440, Funeral Arrangements
Section 4720, Distribution of Property
H&SC § 694.002
Notice of Death of Ward Form, Form 5043
Transfer of Property, Form 5036
Property Review and Condition Checklist, Form 5024
Receipts and Release, Form 5188