This is a March 27, 2014 guardianship case from the Supreme Court of Mississippi which dealt with prudent investing and transfering a guardianship to another state. The minor’s guardian petitioned for transfer of the guardianship to Louisiana, where the ward and guardian had moved. It involves a minor’s $$$, lots of money: from the loss of the minor’s father at the Deepwater Horizon oil rig explosion on April 20, 2010. The minor son evidently got millions which were going to be invested by his mother according to an investment plan. Can a mother transfer her minor child’s guardianship case ? Can she invest a minor’s millions & does the prudent investor rule apply? What is the ability of a probate court to block the transfer of a guardianship when the minor’s mother remarries and wants to move.
Minor Awarded Wrongful Death Proceeds
- February 13, 2007: Blaine was born to Shane and Natalie
- April 20, 2010: Shane died in the Deepwater Horizon oil rig explosion
- Natalie, now a widow, and son Blaine, were the sole heirs and wrongful death beneficiaries of the estate
Estate Settles Wrongful Death Case for Minor Son & Widow
- The probate court appointed Natalie, the mother, as the minor son’s, Blaine’s, guardian
- Blaine, the minor son, had a potential claim for damages for the wrongful death of his father
- (In Florida estates, the personal representative of an estate is the plaintiff or claimant in a Florida wrontful death lawsuit. Additionally, the proceeds, either from a trial or a settlement, are distributed according to the probate court’s order, between family members. A widow can make a claim as well as minor children. Who gets what? That’s for a Florida probate court to decide. How will any money for a minor estate beneficiary, such as a son, be managed and administered and invested? That’s up to the minor’s guardian and the probate court. )
- April 2011: probate the court authorized a substantial settlement on Blaine’s behalf
- Mom/widow wants to invest minor son’s estate money
Court Appoints Guardian ad Litem to Protect Minor Son
- The probate court determined that a guardian ad litem was needed to protect Blaine’s interest.
- The guardian ad litem and the mother/widow had a dissagreement over how the minor’s money from the wrongful death proceeds should be invested
- The mother also wanted to move the guardianship legal proceedings to Louisianna
- July 2011: Natalie re-marries
- She and Blaine moved to Louisiana.
Mother (Guardian of Minor Son) Files Petition for Guardianship Accounting
- December 29, 2011: Natalie filed a “Petition to Approve Final Accounting and for Authority to Transfer Guardianship”
- requesting that the court transfer the guardianship to Louisiana
- Natalie had hired financial planning professionals and tax attorneys
- She was Blaine’s guardian and had an investment proposal for Blaine’s settlement funds
- The guardian ad litem disagreed with the investments and the move to Louisianna
The probate court denied the investment plan and the move or transfer of the guardianship. The Supreme Court of Mississippi said that the the court did not committe any legal errors.
What’s the Take Away?
Florida assumes that a parent is the natural guardian of the person and property of your minor child. But when money is involved:
- the guardian needs to have a plan
- the guardian needs to invest according to Florida’s Prudent Investor Rule
- the Florida guardian must avoid conflicts of interest : even if the minor is your child
- the Florida guardian cannot use the minor’s money to live off of: minor’s don’t support their parents
- Guardianship courts in Palm Beach and throughout Florida have broad discretion to protect the interests of a minor
If you want to read the entire legal opinion about this guardianship case, here’s the link: http://courts.ms.gov/Images/Opinions/CO93346.pdf