A Massachusetts man was appointed guardian of his niece and nephew when their parents died in a car crash in 2009. The man was recently indicted for allegedly stealing approximately $250,000 from their trust fund in the 11 months after he was released from rehab. He pleaded not guilty.
Three very quick points:
- I always recommend that clients designate different individuals to serve as guardian and trustee.
- If different people, the guardian should be able to ascertain if the trustee is stealing from the trust.
- Embezzlers are smart enough to not use stolen funds to buy tangible property, but not smart enough to avoid being caught. Such is the lot of gambling and drug addicts.