Guardianship - Comprehensive Accounting Form

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New Jersey JudiciaryGuardianship ReportComprehensive Accounting Form InstructionsGuardians of the estate may be required to report using Judiciary forms as to the financial affairs of the incapacitatedperson.There are two different periodic reporting forms: the Periodic EZ Accounting form (“EZ form”), and the PeriodicComprehensive Accounting form (“Comprehensive form”). The Judgment of Incapacity should specify which form youare required to file, as well as the deadline for filing.Note that instead of filing a Judiciary form, it is possible that a Judgment may direct periodic filing of a copy of a SocialSecurity Representative Payee Report for the most recent reporting period, or of a formal accounting.Sometimes, a Judgment may simply direct the filing of an annual report or an informal account. If the Judgment does notspecify a type of accounting and you are unsure which form to utilize, you can file the EZ form and then wait for anyfurther direction.The Comprehensive form is more detailed than the EZ form and requires more attachments to substantiate the figuresreported. If the Judgment directs that this form be filed in lieu of the EZ form, you should consider consulting with anattorney, accountant, or other financial professional for purposes of preparing at least the first report. Reasonable fees forsuch professional services are allowable from the estate of the incapacitated person, subject to court approval.Item A asks if a bond is required, and if so, is one filed covering the period of this report. If you were appointed asguardian of the estate but the Judgment waived the requirement of bond, then you should select “N/A”. Even if no bondwas imposed, if your Judgment requires the filing of a report, then you must file the report by the specified deadline.Item B inquires if you have identified, traced and collected all of the protected person’s assets since your appointment. Ifyou answer “No” to this question, you must provide further explanation. For example, if you are aware of assetsbelonging to the incapacitated person but in the custody of someone else, you should explain what steps you have taken toretrieve those assets and bring them into the guardianship estate.Item C addresses the status of the filing of the incapacitated person’s past and current state and federal tax returns, as wellas tax payments. If no tax returns are delinquent as of the filing of your report, then you should answer “Yes” to thisquestion even if tax returns for a subsequent year will soon be due.For example, if your reporting deadline is in February, then in 2014 you may report that you have filed all past and currentreturns and made all payments if everything is current through 2013, even though you will shortly be filing the 2014returns. If the amount of income received by the incapacitated person is too little to require the filing of taxes, then writethis on the form.The next section, “Summary”, is designed to provide an overview of the guardianship estate. “Part I: Cash” is dividedinto two sections, and the figures for both sections are derived from the schedules on the following pages.Line 1 is used to report income as calculated by “Schedule A: Income”, on page 3 of the form. All sources of theincapacitated person’s income must be listed, even if a particular source may have been excluded for purposes of settingbond. Note that if the incapacitated person receives more than one type of Social Security income, each type should bespecified. In general, income will be received for the full 12-month period covered by a report. If a particular source ofincome is received for a lesser period of time, then this should be explained (i.e., alimony of 1250/month received fromformer spouse through July 1, 2014, then terminated due to death of former spouse, so seven (7) months reported for thisperiod, 7 months x 1250/month 8,750).“Schedule B” addresses disbursements from the guardianship estate. “Schedule B-1”, on page 3 of the form is reservedfor attorney’s fees and costs directed to be paid from the assets of the protected person by the Judgment or subsequentCourt Order. The Judgment typically awards a specific amount to be paid to court-appointed counsel for the incapacitatedRevised 05/08/2019, CN 11801 (Instructions: Guardian Report - Comprehensive Accounting)Page 1

person. In some cases, an additional counsel fee award is included in the Judgment for a court-appointed guardian adlitem.If the attorney for the plaintiff in the underlying action sought approval of fees, then that attorney’s fee may also beincluded in the Judgment. If you were the plaintiff in the guardianship action but did not seek or did not obtain courtapproval of fees paid to your attorney at or after final judgment, then any fee you paid to your attorney should not belisted in Schedule B-1. If the court approved payment from the assets of the protected person for less than the full amountpaid to your attorney (i.e., if the Judgment approved fees at 250/hour, but you agreed to pay your attorney 325/hour),then only the amount awarded pursuant to the Judgment should be listed in Schedule B-1 as only that amount has beenapproved for payment from the assets of the incapacitated person. If you have retained an attorney to assist you inpreparing this report, then unless that attorney’s fee has been approved by Court Order, it should not be included inSchedule B-1. Remember to include the date of the Judgment or Court Order for each entry in Schedule B-1. On line 2of the Summary, list the total attorney fees and costs reflected in Schedule B-1.“Schedule B-2”, on page 3 of the form, covers guardian fees and reimbursements approved by the Judgment orsubsequent Court Order. Like Schedule B-1, entries for this schedule are limited to fees and costs approved by the court.This may include not only your approved fees and costs, but potentially amounts approved as to a temporary guardian. Ifyou are the guardian of the estate only, then be sure to include any fees and/or costs allowed as to the guardian of theperson. The date of the Judgment or Order must be listed for each entry, and the total approved guardian fees andreimbursements should be listed in line 3 of the Summary.“Schedule B-3”, on page 3 of the form, should reflect all other fees and costs authorized by the Judgment or subsequentCourt Order. Such court-ordered disbursements may include fees allowed to an individual or institution who providedcare to the incapacitated person during the pendency of the underlying guardianship action, as well as fees charged byphysicians or psychologists who evaluated the protected person as part of the guardianship proceeding.In some cases, after entry of the initial Judgment, the guardian will be directed or allowed to pursue specific matters suchas selling the incapacitated person’s former residence because he or she has been relocated to a skilled nursing facility.The Order Authorizing Sale of Real Property might include an award of fees to the realtor retained to list and sell theproperty, and this court-approved fee would be included in Schedule B-3. Note that if the Order Authorizing Sale of RealProperty included an additional counsel fee to an attorney or guardian ad litem appointed for the protected person, thenthese amounts should be included in Schedule B-1. The total for approved disbursements is then entered on line 4 of theSummary.Whereas Schedules B-1 through B-3 are limited to payments specifically approved by the court,“Schedule B-4”, on page 4 of the form, covers all other disbursements from the guardianship estate. Some disbursements,like food and utilities, are for regular, recurring expenses. If food is purchased solely for the incapacitated person, thenthe amount spent will likely vary from month to month. In this situation, the category of disbursements may be reportedon a monthly basis, but you must list check numbers and the range for dates of purchase. The following is appropriate:#Category12Monthly Grocery - JanuaryMonthly Grocery - FebruaryBankAccount #-6259-6259Check #Payment DatePayeeAmountSpent101, 105121, 124,125January – December 2014February 2014ACME/ShopriteShoprite 293.77 301.77If the protected person resides with the guardian(s) as part of a family unit, then it is permissible for a set amount of theincapacitated person’s funds to be utilized each month to cover his or her share of food purchases. In this case, forSchedule B-4, you may report as follows:#1CategoryGrocery (12 months)BankAccount #-6018Check #Payment DatePayeeAmount SpentJanuaryDecember 2014ACME/Shoprite 2,700(12 x 225/month)Revised 05/08/2019, CN 11801 (Instructions: Guardian Report - Comprehensive Accounting)Page 2

Other recurring monthly expenses, like a cell phone or cable plan, can also be reported in this manner.#Category1Jitterbug Plus(cell phone basic plan 29)BankAccount #-6259Check #Auto-debitPayment DateJanuaryDecember 2014PayeeAmount Spent 359.88(12 x 29.99/month)SprintSome disbursements will reflect occasional purchases, such as new clothes at the beginning of a season or for specialevents. For these items, all fields of the Schedule B-4 should be completed, as follows:#CategoryBankAccount #Check #1Clothing (winter coat, gloves,snow boots)-6018103January 2, 20142Clothing (sister’s wedding)-6018134April 2, 2014Payment DatePayeeKohl’sDavid’s BridalAmountSpent 304.88 126.14Keep in mind that reports are reviewed through the New Jersey Guardianship Monitoring Program. While the forms aredesigned for simplicity and ease of use, if the entries are unclear or raise questions in the minds of reviewers, then youmay be asked to provide further explanation or substantiation. The B-4 total disbursements should be listed in theSummary line 5.Line 6 of the Summary will state the total disbursements, calculated by adding together the foregoing figures reflected onlines 2, 3, 4 and 5.“Schedule C” of the Summary shows cash that has come into the guardianship estate, or cash that has been paid out of theguardianship estate, arising from principal assets. “Schedule C-1”, on page 4 of the form, seeks information regardingsales proceeds (cash that has come into the guardianship estate), such as from the sale of a house, car, or shares of stock.The total for C-1 sales proceeds is then given at line 7 of the Summary.“Schedule C-2”, on page 5 of the form, addresses purchases of principal assets from the guardianship estate. Suchpurchases are different than the disbursements set forth in Schedule B-4. For example, if the incapacitated person owns ahome encumbered by a mortgage, monthly mortgage payments would be listed as B-4 disbursements. If the protectedperson’s existing house is sold during the guardianship, then the proceeds of that sale would be listed in C-1. If a newhouse is purchased for the incapacitated person, then the purchase price for that house would be stated in C-2. The totalfor C-2 purchases is inputted in the Summary, line 8.Line 9 of the Summary will reflect the overall increase or decrease in cash for the period covered by the accounting, basedupon the figures already determined. The entry for line 9 is calculated by adding line 1 (income into the guardianshipestate) and line 7 (sales proceeds into the guardianship estate), and subtracting line 6 (disbursements paid out of theguardianship estate) and line 8 (cash paid for purchases of principal assets).The next entry in the Summary, in Section 2, will show total cash at the beginning of the accounting period. This figure isdetermined by adding together the amounts of cash (and cash equivalents) maintained in banks or other financialinstitutions as of the beginning of the reporting period. The total cash holdings in the guardianship estate should be setforth at the bottom of “Schedule BC”, on page 2 of the form, in the bold box. The figure from the bold box is restated inthe Summary, Section 2, across from the description “Cash at the beginning of the period from Schedule BC”. Note thatyou must not only provide the information identified in the table (institution name, street address, city, state, zip code,bank account number, and amount) but also attach to the accounting copies of each statement from each depository as ofthe beginning of the period covered by the accounting report. Submission of this back-up documentation is required inorder for the accounting to be complete.There is no separate schedule that accompanies the next field of Section 2. Rather, the amount in Section 1, line 9, isinputted across from the description “Increase (Decrease) in cash (from line 9)”.Revised 05/08/2019, CN 11801 (Instructions: Guardian Report - Comprehensive Accounting)Page 3

The third and final field of Section 2 reflects the cash and cash equivalents remaining in the guardianship estate at the endof the reporting period. In “Schedule D”, on page 5 of the form, you will list all cash and cash equivalent holdings, in thesame format as Schedule BC, but now as of the end of the accounting period. Again, you must attach to the accountingcopies of statements from each depository as of the end of the period covered by this accounting. The total cash holdingsin the guardianship estate should be set forth at the bottom of Schedule D, in the bold box, and then this figure restated inthe last field of the Summary, Part I, Section 2.This concludes the information for the Summary, Part I, Cash. Before turning to “Part II”, however, you must completeSchedule E on page 5 of the form, and Schedule F on page 6 of the form. These schedules are provided as tools to helpcheck the information being reported to the court in this accounting. By completing these schedules, you can confirm theaccuracy of your figures or identify any possible math errors or other discrepancies.“Schedule E” is designed to show all bank account transfers during the accounting period. If you have moved fundsbetween accounts, such as by transferring small amounts of money