CFP professional? Click here to get tickets to this live training where you can earn 1.5 CFP Board CE hours for learning about alternatives to guardianship.
A lot of times when we talk about financial freedom in the personal finance space, we’re talking about upper-middle-class people saving up enough money that they never have to work again.
Today, I want to talk about a different type of financial freedom that’s much more tied to the literal meaning of the word.
The freedom to make your own financial decisions independently.
Whether you have a ton of assets or not.
All too often, this freedom is restricted for disabled Americans. Sometimes by the government. Sometimes by ableism in the workplace.
And still other times by their own family members.
One way this manifests is through guardianship.
What are the negative ramifications of guardianship?
During a guardianship hearing, someone — often a family member and almost always someone close to you — will sit opposing you in the courtroom. They’ll be asked to list out all the reasons why you’re incapable. Why you should no longer have control over your own life — financially and otherwise.
That’s scarring. For everyone. Even when the person pursuing guardianship has the best of intentions in their heart.
And a lot of parents and other family members do have good intentions. They’re often trying to protect their loved one. They’re also often unaware of some of the negative consequences of guardianship that can pop up after that initial hearing, like:
- Getting the guardianship contested. Just because the person initially pursuing guardianship has good intentions doesn’t mean everyone in their circle does. When a guardianship is issued, it can open up the door for other family members or individuals to contest it. If they win, everyone’s now in a situation where the new guardian is not looking out for the disabled person’s best interests.
- Getting a state-appointed guardian. When a guardianship is contested, it’s a big drama fest. A lot of times, the court doesn’t have patience for it and will instead assign a state-appointed guardian. It’s far from unheard of to have a state-appointed guardian who only meets with you once or twice per year — if that. That means if you have any financial decisions you have to make, you’ll essentially be sitting in limbo until they actually meet with you. And even then, you’ll have to hope they ‘agree’ with your decision on how you want to move your financial life forward. This neglect can have extremely negative ramifications.
- It’s very rare to end a guardianship. Planning on guardianship being a temporary measure? Think again. It is extremely difficult (and in some cases, impossible) to end a guardianship once it’s been entered — even if that’s what both the disabled individual and the guardian both want. Guardianship tends to be permanent.
- Increased risk of abuse. A lot of parents and family members who pursue guardianship are doing so to protect their disabled family member. But it’s a bit of a counterproductive action. Research shows that women with developmental disabilities in particular are more likely to report experiencing domestic violence when they have lower levels of self-determination. When individuals have more freedom and self-determination, they’re often at a lower risk for abuse, neglect or exploitation. Guardianship is inherently restrictive and removes self-determination, which means it often puts people at more risk for different types of abuse — not less.
So what else can be done?
There are very real reasons people consider guardianship. Maybe the individual needs help making financial or other big life decisions. Maybe they can’t sign their own medical paperwork.
But guardianship is not the only option. There are other solutions that allow the individual to maintain their independence while receiving the support they need through major decision-making processes. And it can all be done with consent — and without that horrific courtroom scene.
Joining us to discuss these alternatives and different ways they can be implemented is Sam Crane, Esq. On September 20, 2024 over at DISABILIFINANCE, she’ll be teaching a live webinar about guardianship and its alternatives.
If you’re a CFP professional, attending this session will earn you 1.5 CFP Board CE hours.
If you’re another financial professional, you may be able to get continuing education credits by running the course by your certifying organization prior to attending.
And if you’re anyone else, you’re welcome to attend, too. This is a topic we could all stand to learn about. Especially as if we are so lucky as to live long enough, we all will eventually become disabled as we age. (Yes, disability includes aging populations!) You never know when it will affect you or someone you love, as guardianship can be filed for at any time.
Looking for more disability finance training?
We’ve got another DISABILIFINANCE webinar going live in a couple weeks, too. Join us on August 23, 2024 to learn about ABLE accounts in terms of financial planning with expert Liz Yoder, CFP®.