The Uniform Probate Code was recently enacted in Massachusetts. The part of it dealing with guardianships and conservatorships is effective as of July 1 of this year - the section dealing with probate of estates will be effective in a year from now.
The new law characterizes guardianships and conservatorships as "protective proceedings" and enables us to tailor those proceedings to the needs of the person who requires protection for himself or his estate. A guardian (one who has responsibility for the protected person) or the conservator (one who has responsibility for the protected person's estate) must furnish a surety bond, unless this requirement is waived in the protected person's durable power of attorney.
A surety bond is a guarantee by an insurance company that if the guardian or conservator does not act properly, the insurance company will pay for any loss. The chances that a particular person might need a guardian or conservator are not very great. However, if a guardian or conservator is needed and if a surety bond is required, the cost may be substantial.
If you do not have a durable power of attorney, you should obtain one soon. The durable power of attorney may avoid the cost of a guardianship or conservatorship if you become incapable of acting for yourself. It makes it possible for someone to act for you in financial matters. We will be glad to prepare a durable power of attorney for you.
If you do have a durable power of attorney and it does not contain a provision waiving the requirement of a surety bond for a guardian or conservator, you should sign a new durable power of attorney as soon as possible. The durable power of attorney could save you thousands of dollars if you become disabled.
The Uniform Probate Code will make the probate process much faster and easier. The UPC minimizes the involvement of courts in the probate process.
In our website we discuss many subjects for which we do not have space in this column. We will be talking about the Uniform Probate Code in our website in detail in the next months.
