Editorial: Time to Fix State's Guardianship Laws

The Minnesota Attorney General’s Office recently prosecuted a legal guardian, Terri Ann Hauge doing business as Estate Resources, Inc., who was suspended from the practice of law in Minnesota in 1995 for lying to clients and mishandling cases.

Because existing law does not require disclosure of professional licensing actions, Hauge was subsequently appointed to serve as a guardian for dozens of vulnerable adults.

That was bad news for them: A complaint filed by the Attorney General’s Office and court documents alleged that:

• In one case involving a ward under her care who only received $650 in Social Security per month, Hauge drained $22,666 from his bank accounts over a seven month period, leaving him with $34.

After Hauge was removed as his guardian-conservator, county social services found that he was living in a squalid apartment with no edible food.

Legislation is in the works by Rep. Debra Hilstrom, chair of the Minnesota House Judiciary Committee, and Sen. Ron Latz, chair of the Senate Judiciary Committee.

The Minnesota Attorney General’s Office supports the proposed legislation, which it says would improve Minnesota’s background check process for guardians and conservators and provide stronger safeguards against financial exploitation by:

• Expanding background checks to include whether a guardian or conservator has ever been denied a professional license by the state related to the responsibilities of a fiduciary duty, or whether they’ve had a license conditioned, suspended or revoked.

• Requiring that guardians and conservators disclose additional information that may bear on their soundness as a guardian, including whether they have filed bankruptcy, been found civilly liable for fraud or misrepresentation, have outstanding civil monetary judgments against them, or have an order for protection or harassment restraining order issued against them.

• Providing that background checks be conducted every two years, instead of every five years as the law currently provides.

• Requiring that guardians disclose the above information, as well as any changes in their criminal history, within 30 days of the incident.

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Editorial: Time to Fix State's Guardianship Laws