Once you have determined what assets the IP has, you must take steps to keep those assets safe. This may include securing valuables, ensuring investments are low risk, maintaining any property or real estate so it does not fall into disrepair, and ensuring that expenses are paid from the IP's income, rather than by selling their assets or using their savings. You are responsible for ensuring all of the IP's bills are paid on time, including insurance premiums. Additionally, you must file an annual tax return on the IP's behalf.
Principal refers to any money or investments the IP had at the time you became their guardian, and any money or assets they received after your appointment that are not part of their income. If the IP's income is not enough to cover their expenses, you must get permission from the court before you spend their savings or sell their real estate. The court refers to this as invasion of principal.
You must also get approval from the court before gifting or donating money or assets of any value. This includes gifting and donations to family members, churches, charitable organizations, and others. For example, if the IP no longer drives and says they want to gift their car to your daughter, you will need permission from the court before transferring ownership.
You need to ensure the IP is receiving all federal and state benefits to which they are entitled. This is particularly important if they will receive medical or long-term nursing care, since these can be a large expense. Depending on their situation, this may include:
Medicare
Medicaid
Social Security (SS)
Supplemental Security Income (SSI)
Social Security Disability Insurance (SSDI)
Veterans Administration (VA) disability compensation
Property tax and rent benefits
Other government benefits
If the IP receives Social Security benefits (SS, SSDI, or SSI), a representative payee needs to be appointed by the Social Security Administration. This is a helpful way to manage the IP's income on their behalf. This role is referred to as federal fiduciary for VA benefits. Sometimes nursing facilities request to be the representative payee for Social Security benefits so they receive guaranteed payment. It is the guardian's decision whether to allow the nursing home to be the representative payee.