Planning for the future is something many people postpone until it is too late. In New Jersey, when an individual becomes unable to manage their own personal, financial, or health-related affairs, the absence of proper planning can lead to the need for a court-appointed guardian. Understanding how guardianship works—and how it can be avoided—is crucial for families seeking to protect vulnerable loved ones.
The most common reason a person needs a guardian is that they failed to execute essential legal documents while they still had capacity. These documents—primarily a financial power of attorney and an advance health care directive—allow an individual to appoint trusted agents to handle their affairs if they become unable to do so themselves. When these self-directed surrogate decision-making tools are missing, and the person is no longer capable of making or communicating informed decisions, a guardianship proceeding may be the only option.
Under New Jersey law, incapacity is defined as an inability to manage one’s affairs due to a physical or mental condition. While incapacity can stem from physical limitations, guardianship cases are most often filed because the person lacks the mental capacity necessary to understand, execute, or revoke legal documents. In other words, once someone has lost the ability to make decisions, it is too late for them to put powers of attorney or health care directives in place.
In these situations, the court may appoint a guardian to make decisions on behalf of the incapacitated person—known as the “ward.” The judge will issue a formal judgment of incapacity outlining the scope of the guardian’s authority. In most cases, the guardian is responsible for making all of the ward’s personal, residential, medical, and financial decisions. However, guardianship can be “limited” if the court determines that the individual retains some ability to make certain choices independently.
One common misconception is that a guardian becomes personally financially responsible for the ward. This is not the case. Guardians do not use their own money; rather, they manage and apply the ward’s assets solely for the ward’s benefit. The guardian is a fiduciary, obligated to act in the ward’s best interest at all times. In essence, the guardian legally “steps into the shoes” of the incapacitated individual. Since the ward can no longer make decisions, the guardian must make them.
Unfortunately, many institutions and even professionals misunderstand how guardianship works. Banks sometimes insist that a guardian bring the ward into the branch to sign documents granting the guardian authority—an impossible request, given that the ward has already been deemed incapable of signing such papers. In reality, the guardian alone has the legal authority to act.
Misunderstandings can occur outside the financial world as well. In one case, involving concerns about a family member and the need for a restraining order, police officers instructed the guardian to bring the ward to the station to file a domestic-violence complaint. But a ward cannot file such a complaint precisely because they lack capacity; safeguarding them becomes the guardian’s responsibility.
These situations illustrate why guardianship is sometimes essential—and why proper planning beforehand can prevent unnecessary complications. Executing a financial power of attorney and an advance health care directive while healthy allows individuals to choose who will act on their behalf and ensures their wishes are honored without the involvement of a court.
Guardianship provides an important safety net for those who can no longer protect themselves. But it is a process best avoided through thoughtful planning. Families who take the time to prepare now spare their loved ones from stress, delay, and confusion later.