Tips for Filing your Guardianship Account

TIPS FOR FILING YOUR GUARDIANSHIP ACCOUNT

 

  • Accounts must be signed by all guardians. Signatures must be original; facsimiles are not acceptable.
  • Supporting schedules must be submitted in a clear and concise format of 10 point font or larger.
  • The first account should begin the date of qualification and end 4 months later.  Each subsequent account should cover a one year period until the minor turns 18 years old and the guardianship has a zero balance on hand.
  • Itemize in chronological order all interest, dividends and other income/receipts earned during the accounting period.
  • Do not include intra-account transfers as receipts or disbursements.
  • Whenever an asset is sold, if the sales proceeds are greater than the carrying value, the difference should be listed as a gain.
  • If the proceeds of sale equal the carrying value of the asset, then no gain occurs.  You should still show the transaction; however report -0- as the gain.
  • Wherever real property is sold, a copy of the executed HUD-1 is required.
  • For securities sold by a broker, provide the original broker’s statement or a signed settlement sheet as verification.
  • Any corrections to the values of assets from the inventory or prior account should be made on “Line 4: Adjustments.”  Corrections must be substantiated. 
  • All disbursements should be listed in chronological order showing the date, payee, and amount. You may group disbursements by payee.
  • For reimbursements, you must provide evidence that the individual being reimbursed made a payment on behalf of the guardianship.
  • For legal and accounting expenses, you should submit a copy of the invoices detailing the work provided.
  • Proper vouchers to support disbursements should be an image of a cancelled check included in your bank statement or a signed statement of receipt.
  • A parent of a minor may not use any funds for the care of the minor absent advance approval from the Commissioner of Accounts or from the Court.
  • Whenever an asset is sold, if the sales proceeds are less than the carrying value, the difference should be listed as a loss.
  • Distributions to a minor occur only on a Final Account once the minor has reached age of majority.
  • Assets on hand are the assets remaining on the end date of the reporting period.  Provide supporting documentation for these assets.  Include two columns for each asset, one for carrying value and one for fair market value (current value).
  • Assets are reported at carrying value (original value listed on the inventory) in the account until the asset is sold or reinvested.  For stocks and securities in dividend reinvestment programs, add any reinvested dividends to the carrying value of the security and increase the number of shares to reflect the additional shares purchased.  Do not report market fluctuations.
  • For a Final Account, ending Assets on Hand should be $0.00 and bank/brokerage statements should reflect this amount.   In support of the distribution to the former minor, an affidavit form signed by the former minor before a notary must also accompany the Final Account.  The form can be found on the Commissioner of Accounts website.




 



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