Guardianships Gone Awry - Insurance Company Sues Clerk of Court
Hartford Fire Insurance Company has sued the Wake County, North Carolina Clerk of Court, alleging that the Clerk's office failed to properly oversee funds held in guardianships for three minor children. The court-appointed guardian transferred the funds to her personal account, causing the insurance company to have to make good on the guardians' bonds. See this article in the News and Observer for the full story.
This is a perfect example of why everyone, even young, working class folks, should make sure they have an estate plan in place. If this young woman had a will with a testamentary trust for her children, she could have named a responsible and knowledgeable trustee to handle the insurance money, avoiding the expense and other problems of guardianship. Instead, her children's financial future was left to chance.
