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:
1. I always recommend that clients designate different individuals to serve as guardian and trustee.
2. If different people, the guardian should be able to ascertain if the trustee is stealing from the trust.
3. 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.