Does a Guardian Inherit Money When the Ward Dies?

Q: What is the role of a guardian in managing a ward's finances?

A guardian is responsible for managing a ward's finances, but they cannot benefit personally from those assets. They must act in the best interest of the ward and ensure that funds are used for the ward's support and care. Regular accountings must be submitted to the court to maintain transparency.

Q: What is a representative payee for Social Security benefits?

A representative payee is a person or organization appointed to manage Social Security benefits on behalf of someone who cannot manage their own finances. This could include minors or individuals with disabilities. The payee must use the funds for the beneficiary's needs, such as housing, food, and medical care.

Full question:

Under Michigan probate law, is a Guardian appointed by the court entitled to a decedent's money who was on SSI at the time and had his money deposited to a Direct Express card offered by Comerica Bank.

Category: Guardianship
Date: 04/07/2025
State: Michigan

Answer:

Generally, a guardian is not charged with managing the income or property of the incapacitated person; however, the guardian may receive funds payable for the support of the ward such as social security as a representative payee. Even if a minor child lives with one or both parents, in some states a guardianship is required if the child inherits property worth more than a certain amount. After the court appoints a guardian, an inventory and appraisal must be filed, and annual or bi-annual accountings must also often be filed with the court .

The guardian of a person's estate is not allowed to personal benefit or profit from the assets that he/she is is charge of. In order for the guardian to get ownership of the assets, s/he would need to be named on the account as the beneficiary in the event of death, or named as the benficiary of the asset in the ward's will. If the ward died without a will, and the guardian is also next of kin, it is possible that the assets would be inherited under the state laws of intestacy.

The following is a Michigan intestate distribution statute:

700.2102 Share of spouse

Sec. 2102.

(1) The intestate share of a decedent's surviving spouse is
1 of the following:

(a) The entire intestate estate if no descendant or parent of the
decedent survives the decedent.

(b) The first $150,000.00, plus 1/2 of any balance of the intestate
estate, if all of the decedent's surviving descendants are also
descendants of the surviving spouse and there is no other descendant of
the surviving spouse who survives the decedent.

(c) The first $150,000.00, plus 3/4 of any balance of the intestate
estate, if no descendant of the decedent survives the decedent, but a
parent of the decedent survives the decedent.

(d) The first $150,000.00, plus 1/2 of any balance of the intestate
estate, if all of the decedent's surviving descendants are also
descendants of the surviving spouse and the surviving spouse has 1 or
more surviving descendants who are not descendants of the decedent.

(e) The first $150,000.00, plus 1/2 of any balance of the intestate
estate, if 1 or more, but not all, of the decedent's surviving
descendants are not descendants of the surviving spouse.

(f) The first $100,000.00, plus 1/2 of any balance of the intestate
estate, if none of the decedent's surviving descendants are descendants
of the surviving spouse.

(2) Each dollar amount listed in subsection (1) shall be adjusted
as provided in section 1210.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens to SSI benefits when a recipient dies?

When a Social Security Income (SSI) recipient dies, their benefits stop. The Social Security Administration (SSA) should be notified of the death as soon as possible. Any payments made after the date of death must be returned. If the deceased had a representative payee, that person is responsible for notifying the SSA and handling the funds appropriately.

Can a guardian access a deceased person's bank account?

A guardian cannot access a deceased person's bank account unless they are named as a beneficiary or have been granted authority through a will or probate process. If the deceased did not leave a will, the assets will be distributed according to Michigan's intestacy laws, which may allow the guardian to inherit if they are a next of kin.

What is the role of a guardian in managing a ward's finances?

How does Michigan distribute assets if someone dies without a will?

In Michigan, if someone dies without a will, assets are distributed according to intestacy laws (MCL 700.2102). The distribution depends on the surviving relatives. For example, if there are no descendants, the spouse inherits the entire estate. If descendants exist, the spouse's share is adjusted based on specific conditions outlined in the statute.