Legal Question in Elder Law in New York

What is a financial custodian when a POA has been designated.

I have durable power of attorney for a relative along with one other person. We both have equal rights and can act independantly. While we both have authority, I have been managing his assets. I also am the health care proxy the other individual is not. The other POA has suggested that we establish a custodian to manage my relative's assets, pay bills, and ???. My relative did not discuss this consideration with me. I understood the designation as POA was because he entrusted us to act in his best interests. What does it mean to establish a custodial arrangement? Can a custodian make financial decisions such as selling his house or liquidating assets without consent by the POA? How might my relative benefit (or not) from the establishment of such an arrangement? My relative is currently in a nursing home, he does not have the capacity to make his own decisions, and he has nearly exhausted medicare 100 day benefits. Thanks


Asked on 4/25/06, 12:00 am

1 Answer from Attorneys
Steven Vatndal Law Office of Steven J. Vatndal

Re: What is a financial custodian when a POA has been designated.

A court can appoint either a custodian or guardian, and either can be of the estate, of the person, or both. Generally, a POA can do the same things as a custodian/guardian of the estate, and a health care agent can do the same things as a custodian/guardian of the person. Also, court-appointed custodians/guardians get compensated, and must make periodic reports to the court that may require hiring an attorney.

From the information given, I don't see why a custodian is needed. I would ask your co-POA for a detailed reason why the appointment is needed. If you'ld like to discuss it more: [email protected]

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Answered on 4/26/06, 7:40 am


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