In a case at the intersection of guardianship and Medicaid law, Matter of Shannon,1 the New York Court of Appeals has issued a definitive ruling restricting the authority of a guardian after the death of the incapacitated person. The case arose out of competing claims by Medicaid and a nursing home against the decedent’s assets that were under the control of the guardian.
Guardians have long been vexed by the lack of a clear line of demarcation of their obligations in winding up the Article 81 Mental Hygiene Law proceeding after the death of the incapacitated person. The death of a ward does not immediately terminate the responsibilities of a guardian. The guardian must wind up the matter appropriately and then be formally discharged. A final accounting must be filed. The court examiner who reviews the final accounting must be paid. The guardian may be awarded commissions. There may be legal fees due to counsel for the guardian. The surety on the guardian’s bond must be released. Like Charon, the mythological helmsman who ferries the deceased across the river Styx to the afterlife, the guardian must transition the case to deliver the assets from the guardianship to the estate.
