Form 8-43

This form is furnished only as a basic example and should not be used as a standard form. The attorney must be careful to tailor the details of the form to the facts of the particular case.

[Caption. See § 3 of the Introduction in this manual.]

Application for Approval of Guardian’s Management Plan

Date of qualification: [date]

[Name of guardian], Guardian, guardian of the estate of [name of ward], Ward, an inca­pacitated person, files this plan for the handling and investment of Ward’s assets, pursuant to the provisions of section 1161.001 of the Texas Estates Code, and seeks approval of the fol­lowing plan from the Court:

Ward’s Current Situation

Ward is [describe marital status, e.g., an unmarried widow], age [age]. [He/She] resides at [address, city, state]. [Describe living conditions, e.g., Ward’s living situation is excellent. [He/She] lives at home with a caregiver as recommended by [his/her] treating physician. Ward has some outside social activity, including attending church.]

Bond and Safekeeping Arrangements

Guardian is currently bonded for $[amount] with [name of bonding company]. [There are no safekeeping agreements in place at this time/[describe safekeeping agreement and give the date the court authorized it]].

Monthly Allowance

A monthly allowance in the amount of $[amount], pursuant to section 1156.001 of the Texas Estates Code, was approved by the Court on [date].

Current Assets

The property of the estate was reported to the Court in the inventory of the estate, which was approved on [date]. There have been no significant changes to the assets other than those necessary to pay monthly expenses.

The current property of the estate, including property not reported on the guardian’s inventory, appraisement, and list of claims and including any interim changes in the property to the date of this plan, is outlined below.

The following is a complete list of all changes in property belonging to the estate: [list any changes since the filing of the inventory].

Real Estate

Personal Property

List of Claims

Cash and Brokerage Accounts

Property Not under Control of Guardian

Plans for Maintenance and Management

Guardian’s plan for the maintenance and management of the property of Ward’s estate is as follows:

1.Real Property

Homestead.      Ward currently resides at [address, city, state], property that [he/she] owns. Guardian plans to maintain this property as Ward’s homestead as long as it is in Ward’s best interests to do so. If maintaining the property ceases to be in Ward’s best interests, Guardian will file the appropriate application with the Court.

Homestead.      Ward’s home is vacant and application will be made to sell or lease the property.

Homestead.      Ward is in a nursing home; however Ward’s spouse resides at [address, city, state], the homestead of Ward and [his/her] spouse. The homestead property will be retained and amounts budgeted to provide for utilities, taxes, insurance, and other items related to upkeep and maintenance. Guardian has verified insurance coverage on the home­stead.

Other Real Property.      At the present time, Guardian plans to [retain the real property of the estate as listed in this management plan/to retain the real property at [address, city, state]/rent the property at [address, city, state] [include if applicable: and has entered into a lease]/sell the property at [address, city, state]]. Guardian has verified insurance and liability coverage on the property.

2.Personal Property

Household Furnishings and Personal Effects.      The household furnishings and per­sonal effects of Ward are located in the homestead property described above and will be main­tained for [his/her] use and benefit. Ward is wearing [his/her] jewelry. Guardian has verified insurance on the personal property.

Automobile.      [An application to sell Ward’s vehicle [has been/will be] filed with the Court, and the proceeds from the sale will be deposited into the estate checking account/Ward’s vehicle will be maintained so that [he/she] may be transported to appointments. Guardian will seek insurance coverage on the vehicle and authorized drivers].

3.Cash on Hand

Estate Checking Account.      The estate checking account is used as an operating account from which Guardian pays for Ward’s needs pursuant to the monthly allowance. The estate checking account, account number [number] at [name of institution], has a balance of $[amount] as of [date] [include if applicable: and is interest bearing].

Claims

A general notice to creditors was given pursuant to section 1153.001 of the Texas Estates Code. [[Describe claims]/There are no known claims against the estate].

Unpaid Debt

[[Describe debts]/There are no debts or expenses of the estate presently due and owed by the estate that have not been paid].

Income

Ward receives $[amount] in Social Security income each month or $[amount] on a yearly basis. [His/Her] accounts at banks and brokerages generate approximately $[amount] per year. In addition, [he/she] receives a pension from [name of institution or agency], which generates $[amount] per year. Guardian anticipates that the required minimum distribution from Ward’s IRA will be $[amount] for [year].

Analysis of Assets

1.Guardian pays recurring bills from Account No. [number] at [name of institution], including cable bills, telephone bills, and utility bills. Guardian plans to retain assets in this account for the purpose of paying these recurring bills.

2.Assets at [name of institution] held in Account No. [number], Ward’s IRA account, consist of cash, U.S. obligations, and corporate bonds and generate an annual income of approximately $[amount], a return of approximately [percent] percent. The minimum required distribution from this account was $[amount] in [year]. On [date], the IRA contained $[amount] in assets. Based on Ward’s age, and using a single life expectancy table, it is antic­ipated that the minimum required distribution for [year] will be approximately $[amount]. The asset mix in this account is as follows: [percent] percent cash, [percent] percent U.S. obliga­tions, and [percent] percent corporate bonds.

3.Assets at [name of institution] in Account No. [number] total $[amount]. Assets in this account consist of notes, which generate income of approximately $[amount] per year, a return of approximately [percent] percent.

4.Assets at [name of institution] in Account No. [number], a management trust account established by Ward for [his/her] benefit, consist of cash, government bonds, corpo­rate bonds, and equities, which generate income of approximately $[amount] per year, a return of [percent] percent. The asset mix in this account is as follows: [percent] percent cash ($[amount]), [percent] percent government bonds ($[amount]), [percent] percent corporate bonds ($[amount]), and [percent] percent equities ($[amount]). Guardian does not control the assets in this account. The terms of the management trust provide [describe terms].

If all of the income of the trust accounts, all of the income of the accounts under man­agement of Guardian, and all of Ward’s retirement income are considered, Ward potentially has at [his/her] disposal income in the amount of approximately $[amount] per year.

Ward must have conservative investments as the cost of [his/her] care is exceeding [his/her] monthly income. [He/She] currently needs approximately $[amount] per month in income to meet the costs of [his/her] caretakers, although future needs may vary due to changes in Ward’s condition. The investment goals are to provide Ward with the highest qual­ity domicile, caretaking, and lifestyle consistent with the life [he/she] enjoyed before incep­tion of the guardianship.

Tax-Motivated Gifts

[Guardian does not plan to make any tax-motivated gifts at the present time/[Describe any tax-motivated gifts]].

Terms of Investment Plan

Guardian requests authority to retain the assets as they currently exist. Guardian will work with the trustee of the various trusts established for the benefit of Ward to coordinate investment goals and provide for Ward. If investment goals change or the brokerage holding Ward’s accounts makes recommendations with regard to purchases and sales of assets, Guard­ian will make the appropriate application with the Court.

Guardian requests authority to retain the following assets, which were on hand at the inception of the guardianship: [describe assets].

Guardian requests authority to retain the following assets, which are [under-productive/volatile]: [describe assets].

Guardian requests authority to sell the following assets in order to diversify Ward’s portfolio: [describe assets].

Guardian requests authority to hire an investment advisor to evaluate Ward’s portfolio.

Guardian requests authority to loan the following assets under section 1161.202 of the Texas Estates Code: [describe assets].

Guardian will request under separate application authority to create a management trust under Texas Estates Code chapter 1301.

Guardian requests authority to make investments, limited to those types of investments speci­fied in Texas Estates Code section 1161.003.

Guardian requests authority to purchase a prepaid funeral policy for Ward.

The applicant prays that the Court approve Guardian’s investment plan described above and prays for all further relief to which Guardian may be entitled.

Respectfully submitted,

   
[Name]
Guardian

   
[Name]
Attorney for Applicant
State Bar No.:
[Email address]
[Address]
[Telephone]
[Telecopier]