Ever feel like managing someone else’s finances should come with a user manual—and maybe a stress ball? If you’re stepping into the role of guardian in Texas, you’re not alone. Between court forms, deadlines, and the pressure of doing right by your loved one, it’s easy to feel overwhelmed. That’s why it’s so important to understand the common mistakes to avoid in Texas guardianship accountings—because even well-meaning missteps can land you in hot water with the court.

In this article, we’ll break it all down in plain English: what the most common errors are, why they happen, and how to stay on the court’s good side while fulfilling your duty with confidence. Whether it’s forgetting to separate finances, missing deadlines, or submitting sloppy records, the goal is to help you avoid the landmines and protect your loved one’s estate—without losing sleep over spreadsheets.

So, if you’re a new guardian, a concerned family member, or just someone trying to get it right, you’re in the right place. Keep reading to learn how to stay organized, stay compliant, and stay out of trouble—all while honoring the trust placed in you. Let’s get started.

Key Takeaways

• Accurate record-keeping is essential for guardians to maintain transparency, prevent mismanagement, and fulfill legal obligations.
• Guardians must keep ward funds separate from personal finances to avoid legal repercussions and potential conflicts of interest.
• Timely submission of complete documentation, including accounting and tax returns, is critical to avoid legal penalties and ensure proper guardianship administration.

Not Keeping Accurate Records

Failing to maintain accurate records is one of the most common mistakes guardians make. Meticulous record-keeping is paramount because:

• Guardians have a legal obligation to keep detailed financial records of the ward’s assets, income, and expenses.
• Proper records help prevent mismanagement.
• Accurate record-keeping ensures transparency.
• Inaccurate records can lead to legal sanctions.
• Poor record-keeping can result in loss of beneficiary trust.

Poor documentation may expose trustees to lawsuits from beneficiaries questioning asset management. To protect against potential allegations of misuse, all expenditures related to the ward’s funds must be transparent. Providing incomplete or inaccurate documentation can significantly delay the accounting process and create complications for fiduciaries. Maintaining comprehensive records, including detailed financial information, throughout the year is crucial.

All bank statements must accurately reflect transactions to support fiduciary accounting. Incomplete documentation can create significant challenges in the probate process, disrupting the accounting for estates and trusts. Thus, careful and meticulous record-keeping is not just a best practice but a crucial step in fulfilling fiduciary duties.

Commingling Funds

Commingling funds is another critical error that can lead to serious legal consequences. Guardians must:

• Keep the funds of the incompetent adult separate from their own personal finances to avoid legal repercussions and financial liability.
• Avoid mixing personal and ward funds, as it is a significant error that can lead to conflicts of interest and mismanagement. This includes recognizing common mistakes to avoid.
• Maintain a clear separation between the guardian’s personal finances and the ward’s finances, which is crucial.

Using joint accounts can lead to inadvertent mixing of funds, which is a common mistake among guardians. Guardians are required to establish a separate guardianship account specifically for managing the ward’s funds. Failure to maintain distinct accounts can result in civil or criminal penalties for mishandling the ward’s assets.

All transactions should be conducted through separate accounts dedicated to ward’s finances and money to avoid these issues.

Missing Important Deadlines

Missing important deadlines is a common pitfall that can have severe consequences for guardians. In Texas, guardians must submit their accounting within 60 days of their appointment anniversary each year. Timely filing of accountings is crucial for maintaining the court’s oversight over the ward’s assets during the accounting period. Texas law dictates that failure to meet the accounting deadline can lead to legal consequences, including potential contempt of court or removal as a guardian in Texas guardianships.

Guardians should calendar their accounting deadlines and set reminders to avoid missing these important dates, as people forget. Missing deadlines can result in court hearings to explain the delays, and legal violations related to guardianship directives can result in mistakes to avoid such as wage garnishment or the suspension of state bar licenses.

Staying on top of deadlines is essential for fulfilling guardianship responsibilities effectively.

Incomplete Documentation

Submitting incomplete documentation is another common mistake that can hinder the guardianship accounting process. Complete and accurate documentation is essential to facilitate transparency and accountability. Failing to provide comprehensive supporting documentation can delay the accounting process and lead to legal repercussions. Guardians must ensure that all bank statements and other financial documents, including accounting forms, are thorough and cover all relevant periods to accurately reflect the financial activities of the estate or trust.

Regular reconciliations are crucial to ensure trust accounts align with bank statements and to identify discrepancies. Incomplete or incorrect supporting documentation, such as bank statements and tax returns, can significantly delay the accounting process and create complications for fiduciaries. Maintaining meticulous records and ensuring all documentation is complete and accurate is vital for smooth guardianship administration

Bank Statements

Bank statements are a critical component of guardianship accountings. To ensure accuracy and support fiduciary accounting:

• All bank statements must accurately reflect transactions.
• Avoid submitting incomplete or incorrect bank statement, as this can hinder the accounting process and lead to legal issues.
• Double-check entries.
• Track all expenses accurately to help avoid discrepancies in bank accounts.

Failing to maintain meticulous record-keeping of the ward’s assets, financial statements, personal property, and real property can lead to significant legal consequences. Guardians should regularly review bank statements and perform reconciliations to ensure all transactions are accounted for. This practice helps identify any discrepancies early and ensures the accuracy of financial records.

Tax Returns

Complete and accurate tax returns are essential in guardianship accountings. Providing complete tax returns ensures there are no discrepancies or misunderstandings regarding the estate’s financial standing. Incomplete or incorrect tax returns can lead to legal issues and complicate the accounting process. Guardians must ensure that all tax returns are thorough and accurately reflect the financial activities of the estate.

Accurate and complete tax returns are essential to prevent any inconsistencies in the financial reporting of estates and trusts. Guardians should work with tax professionals to ensure all tax returns are accurate and up-to-date. This practice helps prevent discrepancies and ensures compliance with legal obligations.

Mismanagement of Ward’s Assets

Mismanagement of a ward’s assets can have serious consequences. Trustees should:

• Distribute assets only after settling all obligations, as premature distributions can lead to personal liability.
• Properly manage the trust’s assets to prevent diminishing its value and negatively impacting beneficiaries.
• Ensure proper management to protect the ward’s interests and guarantee the long-term sustainability of the ward’s estate.

Guardians must ensure that all financial transactions benefit the ward and that the ward’s assets are managed in a way that maximizes their value. Proper management of the ward’s finances, ward’s property, and other assets is essential to fulfilling fiduciary duties and protecting the ward’s interests.

Ignoring Court Instructions

Ignoring court instructions can lead to serious legal consequences. It is vital for guardians to strictly adhere to the directives provided by the court to protect themselves legally. Non-compliance with court instructions can result in civil penalties and impact the guardian’s responsibilities. Following court instructions is vital for successful guardianship administration, especially when the court determines the terms of guardianship, which may be subject to court review.

Regular communication with beneficiaries is also essential to avoid confusion and ensure they understand the trust administration process. Guardians should seek professional guidance to ensure they comply with court instructions and protect the ward’s interests, including obtaining court approval.

Overlooking Beneficiary Designations

Overlooking beneficiary designation can lead to disputes and misaligned estate plans. Beneficiary designations should be clearly identified for all relevant accounts, including:

• Life insurance
• Annuities
• Retirement accounts It’s critical that beneficiary designations align with the overall estate plan to ensure that the deceased’s wishes are honored.

Relying solely on DIY estate planning tools can lead to critical errors because:

• These tools often use generic templates that may not align with specific state laws, including the Texas estates code. Engaging an estate planning attorney helps by:
• Identifying unique family circumstances.
• Ensuring compliance with state laws.
• Minimizing potential disputes among beneficiaries.

Personal Expenses

Guardians must ensure the following regarding financial transactions and the ward’s assets:

• All financial transactions must benefit the ward.
• Using the ward’s assets for personal gain is a breach of fiduciary duty.
• Using funds intended for the ward’s care for personal expenses constitutes a violation of fiduciary duties and may make the guardian liable for mismanagement.
• Guardians must avoid using the ward’s funds for personal purposes to maintain trust and responsibility.

A guardian’s personal liability can arise if they are found to have improperly utilized the ward’s assets for personal benefit. Guardians must ensure that all transactions are conducted transparently and solely for the ward’s benefit to avoid potential legal claims, potential legal issues, and financial liabilities, or they may be held personally liable.

Lack of Professional Guidance

The potential for mismanagement of a ward’s assets increases if the guardian lacks experience or understanding of financial matters. To mitigate risks of asset mismanagement or exploitation, guardians should undergo thorough training and regular oversight. Proper training and oversight can significantly lessen the chances of financial mistakes and safeguard the ward’s interests.

Failure to seek professional guidance can result in devastating consequences for the ward and liability for the appointed guardian. Guardians should seek professional guidance to ensure they fulfill their responsibilities effectively and protect the interests of vulnerable individuals.

Common Pitfalls in Record-Keeping

Maintaining meticulous records of all financial activities related to a trust is essential to safeguard against claims of mismanagement. Fiduciaries are legally obligated to maintain detailed financial records to fulfill their responsibilities. Common pitfalls in record-keeping include failing to track all transactions accurately and not double-checking entries.

To avoid these potential pitfalls, guardians should ensure they maintain accurate records and regularly review financial activities. This practice helps prevent legal issues and ensures the smooth administration of the guardianship estate.

Conclusion:

Being a guardian isn’t just about managing money—it’s about showing up for someone who can’t do it alone. And while the paperwork, court oversight, and deadlines might feel like a full-time job, you don’t have to do it perfectly. You just have to do it right—and that starts with knowing what to watch out for.

Avoiding the common mistakes to avoid in Texas guardianship accountings isn’t just about keeping the court happy (though that’s definitely important). It’s about protecting the person you’ve stepped up to care for and making sure their future stays secure. That’s something to be proud of.

If you’re unsure where to start, feeling overwhelmed, or just want a second set of eyes on your next steps, we’re here to help. At The Law Office of Bryan Fagan, PLLC, our team understands the pressure you’re under—and we’ve helped countless Texans navigate guardianship with confidence and compassion. Whether it’s reviewing your accounting, answering your questions, or helping you avoid trouble before it starts, we’ve got your back.

So, take a breath. You don’t need to have all the answers today—but you do need someone in your corner. Give us a call or schedule a free consultation online. And remember: even guardians need a little support sometimes.

Texas Guardianship FAQ

What must a guardian do before letters of guardianship in Texas?

Before letters of guardianship are issued in Texas, a guardian must complete required training through the Judicial Branch Certification Commission (JBCC), file a bond with the court, and often submit a sworn oath to perform their duties faithfully. The court will not issue letters until these conditions are satisfied.

What is a guardianship bank account?

A guardianship bank account is a special financial account set up in the name of the ward, managed by the guardian under court supervision. It must remain separate from the guardian’s personal finances and is used solely for managing the ward’s assets, income, and expenses.

Does guardianship override power of attorney in Texas?

Yes, in most cases, a court-appointed guardianship overrides a previously executed power of attorney in Texas. Once a guardian is appointed by the court, the authority of the POA is typically suspended or terminated.

How much power does a guardian have?

A guardian in Texas has only the powers granted by the court, which may include managing financial affairs, making medical decisions, and overseeing the personal care of the ward. However, all actions must be in the ward’s best interest and subject to court oversight.

What is the disqualification of guardian in Texas?

A person may be disqualified from serving as a guardian in Texas due to factors such as a history of felony convictions, conflicts of interest, incapacity, or being indebted to the proposed ward. Texas Estates Code outlines specific grounds for disqualification.

What disqualifies you from being a guardian?

Common reasons for disqualification from being a guardian include felony convictions, bad moral character, conflicts of interest with the ward, incapacity, or being found unsuitable by the court due to prior conduct or lack of experience.

Who is the owner of a guardianship account?

Legally, the ward remains the owner of the funds in a guardianship account. The guardian acts as a fiduciary who manages the account on the ward’s behalf and must report account activity to the court annually.

Can a guardian account have a debit card?

A guardianship account may have a debit card if approved by the court, but this is generally discouraged due to the risk of misuse or lack of detailed documentation. Most courts prefer guardians make payments by check or electronic transfer to maintain accurate records.

Can a POA withdraw money from a bank account?

Yes, a person with a valid financial power of attorney can withdraw money from a bank account, but only in accordance with the authority granted in the POA document. However, if a guardian is appointed by the court, the POA may lose that power.