COURT ACCOUNTING WEBINAR for Calif Guardians~Conservators~Executors~Trustees rlc 200618~3hr

AVOID THESE SERIOUS MISTAKES Court accounting is a legal duty for all Guardians, Conservators, and Probate Executors or Probate Administrators. This group of persons are also referred to commonly as “fiduciaries”. What does it mean to be a fiduciary? This is the highest legal duty of one party to another, being a fiduciary requires being bound ethically to act in the other's best interests. A fiduciary might be responsible for general well-being, but often the task involves the financial duty to manage the assets of another person, or of a group of people. These fiduciaries are authorized by the court to manage the assets that they do not own. The fiduciary is acting like a bank holding assets of another. Trustees that voluntarily (or involuntarily) submit court accounting also required to follow the specific requirements of the California Probate Code. The CA Probate Code provides for judicial supervision of fiduciaries handling the assets of third parties. The duties of a court appointed: Guardian, conservator of the estate, Executor of a Probate Estate, and Trustees under Supervision of the Court are to do the following tasks:  Manage the person’s or estate finances.  Locate and take control of all assets.  Collect the person’s or estate income.  Make a budget to show what the person or estate can afford.  Pay the person or estate’s bills.  Responsibly invest the person or estate’s money.  Protect the person or estate’s assets.  Account to the court and to the person or estate beneficiaries for the management of the assets. Read the Handbook for Conservators to learn more about conservatorships, guardianships, probate executors and trustee’s under supervision of the court. (See https://www.courts.ca.gov/documents/h...) Legal Advice: You should get legal advice anytime you are unsure about the meaning or significance of a legal issue. The account described in this class, is of the same estate that is described in the sample Inventory and Appraisal in Appendix C from the Judicial Conservator Handbook that is available online. It has two parts: 1. A written petition and report, with a request for conservator's and attorney's fees, and including a summary of the account. 2. The following schedules of the accounting: • Summary of Account • Schedule A, Receipts • Schedule B, Gains on Sales • Schedule C, Disbursements • Schedule D, Losses on Sales • Schedule E, Cash and Non-Cash Assets on Hand The account and report must be typewritten or prepared on a computer. You'll be glad you've kept good records throughout the year when it comes time to prepare the accounting! AVOID THESE SERIOUS MISTAKES  Never mix your own investments and money with the conservatee's. Even though it may seem convenient at the time to deposit a check made out to the conservatee into your own bank account, it could get you into trouble. The conservatee's assets should be kept in accounts in your name as conservator of the estate, using the conservatee's social security number...  Do not manage the conservatorship estate so that you or your family or friends profit from it. For example, if you were to sell the conservatee's car to your son for less than what it was worth without getting a judge's approval, you would be violating your duty as conservator of the estate. Similarly, you may not give your friends the conservatee's furniture or other possessions, nor may you move into the conservatee's home without paying fair rent.  Never borrow money from the estate. You must not use estate funds or the estate's credit to get loans or credit for yourself, even if you will inherit the estate when the conservatee dies.  Do not give yourself or anyone else a gift from estate funds without getting a judge's approval first.  Do not pay yourself or the conservator of the person fees from the estate without a judge's approval first.  Do not pay fees with estate funds to your lawyer, to the lawyer for the conservator of the person, or to the lawyer for the conservatee, without getting a judge's approval first. …FROM REX CRANDELL’s OFFICE… If you have any questions, please contact our office. Very truly yours, /s/ Rex L. Crandell Rex L. Crandell Firm Walnut Creek Office 3000 Citrus Circle Suite 207 Mail: P O Box 30305 Walnut Creek, CA. 94598 E-Mail: [email protected] http://www.taxrexcrandell.com; http://www.RexCrandell.com; http://taxnewsonlinereport.wordpress.... http://estateplanningreport.wordpress... Fax (925) 934-6325 Phone: (925) 934-6320 Phone: (800) 464-6595