Did you know that a person who serves as a court-appointed guardian of both person and property, is eligible to be paid for their efforts?
nj.com published an article recently that asks “Can a court-appointed guardian get paid?” The answer: yes. If you serve as a court-appointed guardian of the person and/or the property of an incapacitated person (also known as a “ward”), you can get reasonable reimbursement of expenses incurred and fees or commissions for your services.
If two individuals are appointed as guardians, one as the guardian of the person and the other for the property, the fees for services to be paid to the guardian of the person must be agreed upon by the guardian of the property.
The guardian of the property will then have to give the judge an accounting of all disbursements made from the ward's funds. This includes the fees paid to the guardian of the person.
For example, the New Jersey statute sets the fees in the form of commissions to be paid to the guardian of the property. This is based upon the amounts of the principal and income, which the guardian is responsible for on behalf of the ward.
A 6% commission may be taken on all income received by the guardian. Commissions may also be taken in the amount of $5 per $1,000 of principal on the first $400,000, and $3 per $1,000 of principal more than $400,000.
There’s a minimum commission of $100 allowed annually, regardless of the value of the principal.
If there are two guardians, the New Jersey statute states that a one-fifth increase in the principal commission is permitted.
If the guardian makes an application to the court, a request can be made for a greater amount than what’s in the statute on a showing of unusual or extraordinary services.
A guardian is also entitled to the reimbursement of reasonable and necessary expenses incurred. A guardian should retain all receipts and keep a record or diary of expenditures. That is because if there are any questions, they probably won’t arise until after the guardian’s report is filed. There will also be an accounting with the court, which usually is required annually.
Reference: nj.com (April 13, 2018) “Can a court-appointed guardian get paid?”