§ 2659. Financial guardianship; minors

(a) The Probate Division may appoint a financial guardian for a minor pursuant to this section if the minor is the owner of real or personal property. A financial guardian appointed pursuant to this section shall have the care and management of the estate of the minor but shall not have custody of the minor.

(b)(1) A parent or a person interested in the welfare of a minor may file a petition with the Probate Division of the Superior Court for the appointment of a guardian for a child. The petition shall state:

(A) the names and addresses of the parents, the child, and the proposed guardian;

(B) the proposed guardian’s relationship to the child; and

(C) any real and personal property owned by the minor.

(2) A petition for financial guardianship of a minor under this section shall be served on all parties and interested persons as provided by Rule 4 of the Vermont Rules of Probate Procedure.

(c) The Probate Division shall schedule a hearing upon the filing of the petition and shall provide notice of the hearing to all parties.

(d) If the court grants the petition for financial guardianship of the minor, the court shall enter an order establishing a financial guardianship, naming the proposed guardian as the child’s financial guardian, and specifying the powers and duties of the guardian.

(e) The duties of a financial guardian shall include the duty to:

(1) pursue, receive, and manage any property right of the minor’s, including inheritances, insurance benefits, litigation proceeds, or any other real or personal property, provided the benefits or property shall not be expended without prior court approval;

(2) deposit any cash resources of the minor in accounts established for the guardianship, provided the cash resources of the minor shall not be comingled with the guardian’s assets;

(3) responsibly invest and reinvest the cash resources of the minor;

(4) obtain court approval for expenditures of funds to meet extraordinary needs of the minor which cannot be met with other family resources;

(5) establish with court approval:

(A) special needs trusts;

(B) trusts for the benefit of the minor payable over the minor’s lifetime or for such shorter periods as deemed reasonable; or

(C) structured settlements providing for payment of litigation proceeds over the minor’s lifetime or for such shorter periods as deemed reasonable; and

(6) file an annual financial accounting with the Probate Division of the Superior Court stating the funds received, managed, and spent on behalf of the minor. (Added 2013, No. 170 (Adj. Sess.), § 2, eff. Sept. 1, 2014; amended 2017, No. 195 (Adj. Sess.), § 18.)