Guardianship Versus Powers of AttorneyOne of the most common questions I get as a practicing elder law attorney is, what is the difference between guardianship and a power of attorney? A power of attorney is a document that a person executes when they are competent to appoint someone to be their agent for either healthcare matters, financial matters or both. The defining characteristics of powers of attorney is that it is a voluntary action by the person, and it can be revoked at any time so a power of attorney cannot be used to trump someones free will in order to place them in a facility for example, against their wishes.A guardianship is a process where one typically files a pleading, requesting to be appointed as a persons guardian.  In this case, we must demonstrate that the person we seek to protect is incompetent to manage either their healthcare, or their finances, or both.The guardianship typically comes about in two primary ways. First, if the person we seek to protect never executed a power of attorney, and now is incapable, a guardianship would be necessary in order to handle things like an admission to a hospital or long-term care facility because no one has been appointed to consent to treatment for them.  Second is a situation where the person we seek to protect is actively combative to the plan in place to handle their health matters. In this case, we must seek guardianship in order to overcome their wishes, particularly if they are unwise. For example, if your parent develops dementia, but insists that there is nothing wrong with them, that they should continue to drive and live independently and manage their medication, despite evidence that those things are dangerous in their current condition, guardianship is typically necessary in order to restrict their freedom.In some states, like Florida, the guardianship will also cover financial matters.  in Alabama, the conservatorship is established at the same time as a guardianship in order to handle healthcare matters for those cases where there is no power of attorney, and the conservatorship is necessary in order pay their bills, access finances, and so forth.To establish financial guardianship, no matter what its called, we typically must be bonded so the person who is applying must be credit worthy and able to obtain a bond from a surety company. This ensures that the persons financial well-being is well taken care of.  If there is no one available, or if no one wishes to handle finances, every county typically has, or can appoint someone, as a county conservator to serve as that persons conservator.  This is helpful in cases where its a very difficult or complex financial situation.  Then it may be preferable to have a professional appointed and giving a relatively small fee for doing so.  This leaves the guardian to care for the healthcare of the individual without the added stress of complicated financial matters. Contact an elder attorney for more information about what your needs are and please dont put off executing a power of attorney in favor of those people that you trust as soon as you can to avoid what could be difficult and unnecessary proceedings in Probate Court down the road.This article was contributed by Kyla Kelim with Aging in Alabama.  Kyla is an experienced Elder Law attorney.  Contact Kyla at 251-281-8120.

For nearly a decade, people with disabilities have had the option to accumulate savings in a special tax-free account without risking their means-tested public benefits. In 2024, the annual limit on how much money one can deposit into these savings vehicles, known as ABLE accounts, will rise, allowing individuals to add up to $18,000 per year.What Is an ABLE Account?Many people across the disability community rely on such government assistance as Medicaid, Supplemental Nutrition Assistance Program (SNAP) benefits, or Supplemental Security Income (SSI). Yet having too many assets to their name can disqualify them from receiving these often critical benefits. For example, in most states, the resource limit to qualify for Medicaid is just $2,000. In 2014, Congress signed the Achieving a Better Life Experience (ABLE) Act into law to help address this issue.Individuals with an ABLE account can save up to a total of $100,000, tax-free, while remaining eligible for public assistance programs. Family members, friends, and others can make contributions to the account, too. The disabled person can then use these funds to help maintain their independence by spending them on disability-related expenses, including assistive technologies, education, transportation needs, vacations, legal fees, and health care.Unlike a special needs trust (SNT), an ABLE account can be opened by the individual with the disability. This offers them considerably more control over the account funds compared with an SNT. Starting in 2024, the annual limit on contributions to ABLE accounts will be $18,000, up from $17,000 in 2023. Through the end of 2025, ABLE account owners who work can contribute their employment income to these savings vehicles even beyond the per-year deposit limit. (Learn more about these rules under the ABLE to Work Act.)The idea for these accounts derived from the concept of a 529 college savings plan. Similar to a 529 plan, funds in an ABLE account grow tax-deferred over time. In addition, each state administers its own ABLE account program.To qualify, you must meet the Social Security Administrations strict definition of disabled. You also must have incurred your disability before age 26. (Note that the age cutoff will shift to age 46 come 2026. According to estimates, this age adjustment will result in roughly 6 million more individuals becoming eligible to open these types of savings accounts.)Why Open an ABLE Account?People with disabilities are among those most at risk for financial disaster. According to research, just 10 percent of people of working age who are living with a disability are financially healthy.ABLE Accounts, or 529A accounts, can serve as a form of future financial support for these individuals. Yet the vast majority of those who could benefit from these accounts remain unaware of them. As of 2022, 8 million people were eligible for this type of account, yet a mere 120,000 had one in place.Get Support With ABLE Accounts To learn more about setting up this type of savings account, consult with Ashley Day Special Needs & Elderly Law at 251-277-3377.

Today, we're discussing how to choose between appointing a guardian or conservator. When deciding what kind of protection you need in an aide, there are many things to consider, including:1. What is your personal capacity to care for yourself?2. What areas of life do you need supervision over? Healthcare? Daily maintenance? Or, do you only need help safeguarding finances?3. How extensive is your estate?4. What is the difference between a guardian and a conservator?5. What combination of conservator/guardian would you most benefit from? Guardian only? Conservator only? Or both?Differences Between Guardians and Conservators A guardian is a person (or an institution) who is given authority to act on behalf of a protected person as though they were that person. A guardian can be given a full guardianship over all aspects of your life, or authorities limited to certain areas such as health care, education, or finances. A conservator is given authority only over your finances. Like a guardian, a conservator must be appointed by a court order. However, unlike a guardian, a conservator cannot make personal decisions for you. Conservators DutiesOnce appointed, a conservator becomes the trustee of your estate, which includes income (wages, social security, annuities), real property (a house, other buildings, and land), as well as stocks, bonds, retirement funds, etc. In fact, once appointed, and unless specifically limited, a conservator has all of the authority given by law to conservators, additional authority given to trustees, and the authority of the protected person, except the power to make or change a will. This amounts to a lot of power. Thus, when acting on your behalf, a conservator must act as a prudent investor would. A conservators duties and powers include:Managing your incomeContinuing or participating in the operation of your business or enterprises Making necessary estate paymentsOrganizing and protecting your assetsAppraising and safeguarding your propertyMaking prudent investmentsPaying or contesting any claims against the estateRegularly reporting to the courtThe list above is by no means exhaustive. Because a conservator does have so much power, their authorities and responsibilities are highly regulated. An in depth conversation about these powers is outside of the scope of this blog post, but must be understood and tailored to your specific needs in order to best serve them. Deciding What Is Best For YouIf your are able to care for yourself in every area other than their finances, you might only need a conservator. If you need help in other areas of their life, you probably need a guardian. If your capacity to care for yourself is diminished and you have an extensive estate, you might need both a guardian and a conservator. We understand that deciding how to best plan for your future might seem complicated and daunting. We can help you balance the choices that you have with your needs. Contact us today. 385.334.4030email@skvlegal.com skvlegal.com/book-online