Mediation in NC Estate and Guardianship Matters

Clerks of Court, the ex officio judges of probate and guardianship matters in North Carolina Counties, can now order mediation in those cases.  Parties to the proceedings can also request that mediation be ordered.  See this memo on the Clerk Mediation Program from the North Carolina Court System website.

While I don't get involved in many contested matters, I have seen mediation work wonders.  In many court systems, mediation is mandatory for civil proceedings.  It can save time and money for the parties and help ease the crowded court dockets.

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.