Nevada Revised Statutes 628B.550 – Fiduciary duty; prohibited transactions or interests; voidable transactions; additional remedies; appointment and review of guardianships; filing of reports with court
1. The fiduciary relationship which exists between a private professional guardian and the protected person of the private professional guardian may not be used for the private gain of the guardian other than the remuneration for fees and expenses. A private professional guardian may not incur any obligation on behalf of the guardianship that conflicts with the discharge of the duties of the private professional guardian.
Terms Used In Nevada Revised Statutes 628B.550
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
2. Unless prior approval is obtained from a court of competent jurisdiction, a private professional guardian shall not:
(a) Have any interest, financial or otherwise, direct or indirect, in any business transaction or activity with the guardianship.
(b) Acquire an ownership, possessory, security or other pecuniary interest adverse to the protected person.
(c) Be knowingly designated as a beneficiary on any life insurance policy or pension or benefit plan of the protected person unless such designation was validly made by the protected person before the adjudication of the person’s incapacity.
(d) Directly or indirectly purchase, rent, lease or sell any property or services from or to any business entity in which the private professional guardian, or the spouse or relative of the guardian, is an officer, partner, director, shareholder or proprietor or in which such a person has any financial interest.
3. Any action taken by a private professional guardian which is prohibited by this section may be voided during the term of the guardianship or by the personal representative of the protected person’s estate. The private professional guardian is subject to removal and to imposition of personal liability through a proceeding for discharge, in addition to any other remedies otherwise available.
4. A court shall not appoint a private professional guardian that does not meet the requirements set forth in NRS 159.0595 as the guardian of a person or estate. The court must review each guardianship involving a private professional guardian on the anniversary date of the appointment of the private professional guardian. If a private professional guardian does not meet the requirements set forth in NRS 159.0595, the court must replace the guardian until such time as the private professional guardian meets such requirements.
5. A private professional guardian shall file any report required by the court in a timely manner.