Guardianships are set up to protect minors in certain situations. Even if their parents care for them, they may require guardians to undertake particular matters. A court may appoint a guardian if the parents die or are unable to care for their child.
Guardianships are overseen by probate, family, or criminal courts, depending on the reason for the appointment. Contact a Covina guardianship lawyer today to discuss whether your child or another minor child is a candidate for oversight. Our hardworking estate planning attorneys could answer any questions you have regarding this legal area.
Types of Guardianships
When minors earn or inherit money, receive an insurance payout, or receive state benefits, California law requires that a guardian be named to protect the child’s financial interests, which may be a parent.
If the parents are deceased or a danger to the child, a family court judge will appoint a guardian to provide a stable home and the physical and emotional support the minor needs. Grandparents are commonly appointed guardians in these circumstances.
Guardian Ad Litem
Guardian ad litem appointments are made when a child is involved in a criminal case, such as domestic violence. The guardian ad litem advocates for the child only during the court proceedings for the specific case, and criminal or family court judges appoint them. Consult with a guardianship lawyer in Covina for questions about protecting minors.
Protecting a Child’s Financial Interests
Banks and insurance companies require a Letter of Guardianship issued by a California court before they release a minor’s money to someone else. The court and financial institutions permit some exceptions to the requisite letter, including the following:
- When an annuity or insurance policy names an unrelated custodian to accept the payout for the minor beneficiary
- If a payout is less than $5,000, the minor’s parents can collect it
- When an annuity or life insurance policy names the minor’s parents as custodians, they can collect the payout without a letter
- If the minor is about to turn 18, the courts advise waiting until the minor is an adult to collect a payout themselves
Several nuances in the law are best left for a Covina guardianship attorney to explain. For example, when parents are named guardians, they cannot use the money toward the child’s general support because they are expected to use their own funds.
Guardians Protecting a Minor’s Estate Must be Bonded
When guardians are appointed to manage a minor’s financial holdings and access the assets to invest in stocks and bonds or use them in any way to benefit the minor, they must be bonded. Insurance companies and financial institutions require a guardian with financial access to work with a legal professional. However, a bond is not required if the guardian will not access the assets and is held in a blocked account.
California calls this arrangement the bond it or block it rule. Guardians who choose not to be bonded must receive a blocked account receipt from an FDIC-insured bank where assets are held. A guardianship lawyer in Covina could assess a client’s situation and advise whether bonding or blocking is best in their interest.
Get in Touch With a Guardianship Attorney in Covina Today
Guardians advocate for minors, whether they lose their parents, are involved in a court case, or need someone to manage money from an inheritance, insurance, state benefits, or annuities. A child’s estate guardian must follow strict rules and is expected to work with legal counsel if they can access financial accounts.
Parents are not the only choice the court will consider when appointing a guardian for a child. The judge’s mission is to rule in the child’s best interest. A Covina guardianship lawyer could walk you through the legalities of a guardianship case and help you receive a favorable result. Schedule a consultation with Amity Law Group, LLP today to learn more.
