Transactions between Guardian and Ward

The relationship between the guardian and the ward is similar to the relationship between trustees.  However, during the existence of the relation, the guardian and the ward are generally prohibited from entering into a contract with each other.  Therefore, any sale by the ward to the guardian while such relation continues, including transactions entered into between them after the guardianship dissolves, will be closely scrutinized.  If a transaction between the ward and the guardian is to be validated it must have been made in good faith and without any undue influence or advantage taken of the ward.  If the transaction is without good faith, it will be set aside.  However, transactions that take place after the relationship between the guardian and the ward has been entirely dissolved, and all accounts are settled after the coming of age of the ward, will be considered binding.

The relationship between the guardian and the ward is fiduciary in nature and all transactions between them while the influence of the guardian still lasts or is recent will be closely scrutinized by the courts.


Inside Transactions between Guardian and Ward