Orlando is a thriving city with diverse families, from retirees who have chosen Central Florida for their golden years to young adults with special needs who require lifelong care. In many of these cases, guardianship becomes necessary to ensure that a loved one is safe, protected, and financially secure.
As an Orlando Guardianship Attorney, I frequently meet with family members who want to do right by their loved one but are unsure about the legal limits of their role. One of the most common questions is whether court approval is always required before spending the ward’s money. This is an important issue because mishandling funds—even with good intentions—can create serious legal consequences.
I’m Beryl Thompson-McClary, and I represent families throughout Orange County, Florida, in guardianship cases. Whether you are a guardian trying to understand your obligations, or a family member concerned about how funds are being managed, I can help. You can call me today at 1-888-640-2999 to schedule a consultation and discuss your case in detail.
Defining the Legal Issue Under Florida Law
Florida guardianships are governed by Chapter 744 of the Florida Statutes, which carefully regulates how guardians handle the personal and financial affairs of wards. A “ward” is the individual under guardianship, and guardians are legally obligated to act in the ward’s best interest.
Under Fla. Stat. § 744.361, guardians are considered fiduciaries. This means they must handle the ward’s assets with the same care, skill, and diligence that a prudent person would use when managing their own finances. Importantly, guardians are required to seek court approval for certain financial transactions, especially when they involve significant spending or changes to the ward’s assets.
The law creates a balance: guardians need flexibility to handle day-to-day expenses, but they also need oversight when making larger financial decisions that could affect the ward’s estate.
Situations Where Court Approval Is Required
Guardians cannot spend ward funds however they wish. Florida statutes specifically outline actions that require advance court approval, including:
- Selling or Mortgaging Real Property: Under Fla. Stat. § 744.441, a guardian must obtain court authorization before selling, leasing, or mortgaging the ward’s home or real estate.
- Investing Assets: Certain investments or transfers of assets must be approved to ensure they are prudent and in the ward’s best interests.
- Settling Legal Claims: If a guardian wants to settle a lawsuit on behalf of the ward, the court must review and approve the settlement.
- Major Expenditures: Large, non-routine expenses—such as purchasing a vehicle or paying for significant renovations—often require judicial approval.
- Gifts and Estate Planning Decisions: A guardian cannot make gifts or change the ward’s estate plan without a judge’s permission.
This oversight protects the ward from financial exploitation and ensures accountability for the guardian’s decisions.
When Guardians May Spend Without Court Approval
On the other hand, not every expense requires a judge’s order. Guardians are permitted to use the ward’s money for routine and necessary living expenses, such as:
- Housing costs (rent, utilities, basic maintenance)
- Medical bills and health insurance premiums
- Food, clothing, and personal care items
- Transportation and reasonable travel needs
- Educational and vocational expenses for wards with disabilities
These day-to-day expenditures fall under the guardian’s duty to provide for the ward’s support and are generally approved in the initial guardianship plan filed with the court.
As long as the guardian’s spending is consistent with the budget outlined in the approved annual plan, additional court orders may not be necessary for each transaction.
The Guardian’s Annual Plan and Accounting Obligations
A crucial part of this process is the requirement that guardians file annual accountings and plans with the court. These documents detail how money has been spent, what assets remain, and what future needs are anticipated.
Under Fla. Stat. § 744.367, the annual accounting must include:
- A complete inventory of the ward’s assets
- All income received during the reporting period
- A record of all expenditures
- Any significant changes in the ward’s financial condition
This reporting ensures transparency and allows the court to review whether spending was appropriate.
The Perspective of Guardians
From a guardian’s perspective, requiring court approval for every expense can feel restrictive. Guardians often argue that they know the ward’s needs best and that requiring judicial approval for routine or urgent expenses can delay necessary care. For example, if a guardian needs to repair a roof or replace a wheelchair immediately, waiting for a court order could be impractical.
Florida law addresses this by allowing some discretion for guardians in routine matters but drawing a clear line at significant financial changes.
The Perspective of Concerned Family Members
Family members sometimes worry that a guardian might misuse funds or spend recklessly. They may argue that requiring court oversight for major expenditures is critical to prevent waste or fraud. This is especially important in cases where large estates or inheritances are at stake.
By requiring court approval for big-ticket transactions, Florida law provides a safeguard against abuse while still giving guardians the flexibility to meet daily needs.
Ramifications of Spending Without Court Approval
If a guardian spends money improperly without court approval, the consequences can be severe:
- Personal Liability: The guardian may be ordered to reimburse the ward’s estate.
- Removal as Guardian: Courts may remove a guardian under Fla. Stat. § 744.474 for mismanagement or abuse of powers.
- Civil or Criminal Penalties: In cases of fraud or exploitation, guardians may face lawsuits or criminal charges.
- Loss of Trust: Beyond legal penalties, a guardian who spends improperly may lose the trust of the family and the court.
These risks highlight why consulting with an experienced Guardianship Attorney in Orlando is critical before making any questionable financial decisions.
FAQs About Spending the Ward’s Money in Florida Guardianships
Do I always need court approval before spending the ward’s money?
Not always. Routine living expenses can usually be paid without additional court approval, provided they are consistent with the court-approved guardianship plan. Larger transactions or unusual expenditures generally require a judge’s authorization.
What happens if I spend ward funds without court approval?
You could be held personally liable and may even be removed as guardian. The court takes misuse of a ward’s money very seriously. Always consult with your attorney before making significant financial decisions.
Can I use the ward’s funds to pay for my own expenses as a guardian?
No. Guardians cannot use ward funds for personal benefit. You may be entitled to reimbursement for approved expenses or a reasonable guardian’s fee, but those must be authorized by the court.
Can I pay myself a salary from the ward’s estate?
Guardians may be entitled to reasonable compensation, but it must be reviewed and approved by the court. The amount depends on the complexity of the case and the ward’s resources.
What if the ward needs urgent medical care and I don’t have time to get court approval?
Necessary medical expenses are generally covered under the guardian’s authority, but you should document the decision and include it in your next accounting. For unusual or high-cost procedures, it’s best to consult your attorney quickly to determine if judicial approval is needed.
How do I know which expenses require court approval?
The guardianship plan you submit and the guidance from your attorney will clarify this. Generally, if the expense involves selling property, making investments, or transferring large sums, court approval is needed.
What role does the annual accounting play in spending oversight?
The annual accounting allows the court to review all spending and ensures transparency. Even if you don’t need prior approval for certain expenses, they must be disclosed and justified in the accounting.
What if my family disagrees with how I’m spending the ward’s money?
Family members can object to your accounting or petition the court for review. Having court approval for major expenses protects you from disputes and allegations of mismanagement.
Can the court deny my request to spend ward funds?
Yes. If the judge believes the expense is not in the ward’s best interest or is unnecessary, the request can be denied. That’s why it’s essential to prepare thorough justifications with the help of an attorney.
Should I hire an Orlando Guardianship Attorney to help with financial matters?
Absolutely. Guardianship law in Florida is complex, and the consequences of mistakes are serious. An attorney ensures compliance with statutes, protects your interests, and provides clear guidance on when to seek court approval.
Contact Orlando Guardianship Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation.
I represent clients throughout Orange County, Florida, and I can help you understand your rights, your duties, and the safest path forward.
Guardianship is one of the most important legal responsibilities you can take on. If you are unsure whether court approval is needed before spending your ward’s money, do not take chances. Protect yourself and your loved one by getting legal advice.
