On petition, and after any notice or hearing prescribed by law or the Maryland Rules, the court may appoint a guardian of the property of a minor or a disabled person. A guardian shall be appointed if the court determines that: A minor owns or is entitled to property that requires management or protection; or Funds are needed for the minor’s support, care, welfare, and education and protection is necessary or desirable to obtain or provide funds. A guardian shall be appointed if the court determines that: The person is unable to manage effectively the person’s property and affairs because of physical or mental disability, disease, habitual drunkenness, addiction to drugs, imprisonment, compulsory hospitalization, detention by a foreign power, or disappearance; and The person has or may be entitled to property or benefits which require proper management.

Venue in proceedings under this subtitle shall be as provided by the Maryland Rules.

While a petition for appointment of a guardian or other protective order is pending, the court may preserve and apply the property of the alleged disabled person or minor as may be required. The court need not give notice to other persons. The court may not exercise the power conferred by subsection (a) of this section unless it appears from specific facts shown by affidavit that immediate, substantial, and irreparable injury will result to the applicant or to the minor or disabled person before an adversary hearing can be held. The court may communicate informally with the minor or disabled person before taking action. Any order shall be served immediately on the minor or disabled person. Except for the limitations contained in § 13–106 of this title, after appointment of the guardian, the court has all the powers over the property of the minor or disabled person that the person could exercise if not disabled or a minor. The powers that a circuit court has under paragraph (1) of this subsection include the power to authorize or direct the guardian to: Make gifts from the principal and income of the estate; and Disclaim on behalf of the minor or disabled person, in whole or in part, the right of succession or transfer to that person of any property or interest in any property. The powers that a circuit court has under paragraph (2) of this subsection are in addition to and may not limit the power: Conferred upon the guardian to make distributions under § 13–214 of this subtitle; and Conferred upon the guardian or the circuit court, without appointing a guardian, to disclaim or authorize or direct a disclaimer on behalf of a minor or disabled person under § 9–201(c) of this article. A guardian or any other interested person may invoke the jurisdiction of the court at any time to resolve questions concerning the estate or its administration.

If a basis exists as described in § 13–201 of this subtitle for assuming jurisdiction over the property of a minor or disabled person, the circuit court, without appointing a guardian, may authorize or direct a transaction with respect to the property, service, or care arrangement of the minor or disabled person. The transactions described under paragraph (1) of this subsection include: Payment, delivery, deposit, or retention of funds or property; Sale, mortgage, lease, or other transfer of property; Purchase of contracts for an annuity, life care, training, or education; Making the election to take an elective share of an estate subject to election under § 3–403 of this article; Granting access to financial records; Establishing eligibility for government assistance programs; or Any other transaction described in: § 13–203(c)(2) of this subtitle; Title 9, Subtitle 2 of this article; or § 15–102 of this article. Before approving a transaction or arrangement under this section, the court shall consider the interests of creditors and dependents of the minor or disabled person and whether the property of the minor or disabled person needs the continuing protection provided by a guardian.

An adjudication under this subtitle shall have no bearing on the issue of whether the alleged disabled person has the capacity for self–care.

Subject to the provisions of § 13-207 of this subtitle, the court may appoint as guardian of the estate of a minor or disabled person: Any individual; Any trust company; or Any other corporation authorized by law to serve as a trustee. The appointed guardian shall qualify by filing any required bond. The appointment and qualification of a guardian vests in the guardian title to all property of the minor or protected person that is held at the time of appointment or acquired later. The appointment is not a transfer or alienation within the meaning of any federal or State statute or regulation, insurance policy, pension plan, contract, will, or trust instrument that imposes restrictions on or penalties for transfer or alienation by the minor or disabled person of the minor or disabled person’s rights or interest. A guardian shall utilize powers conferred by this subtitle to perform services, exercise discretion, and discharge the guardian’s duties for the best interest of the minor or disabled person or the minor or disabled person’s dependents. If a trust company is appointed guardian, a court may order any money paid to the court for the benefit of the minor or disabled person to be deposited with the trust company. The guardian is the statutory agent of the minor or disabled person for the purpose of filing all government reports and returns.

Persons are entitled to appointment as guardian for a minor or disabled person according to the following priorities: A conservator, committee, guardian of property, or other like fiduciary appointed by any appropriate court of any foreign jurisdiction in which the minor or disabled person resides; A person or corporation nominated by the minor or disabled person if: The designation was signed by the minor or disabled person when the minor or disabled person was at least 16 years old; and In the opinion of the court, the minor or disabled person had sufficient mental capacity to make an intelligent choice at the time the designation was executed; The minor or disabled person’s spouse; The minor or disabled person’s parents; A person or corporation nominated by the will of a deceased parent; The minor or disabled person’s children; The persons who would be the minor or disabled person’s heirs if the minor or disabled person were dead; A person or corporation nominated by a person, institution, organization, or public agency that is caring for the minor or disabled person; A person or corporation nominated by a governmental agency that is paying benefits to the minor or disabled person; and Any other person considered appropriate by the court. A person specified in a priority in subsection (a)(1), (3), (4), (6) or (7) of this section may waive and nominate in writing a person or corporation to serve in the specified person’s stead. A nominee of a person holding a priority has the same priority as the person making the nomination. Among persons with equal priority, the court shall select the one best qualified of those willing to serve. For good cause the court may pass over a person with priority and appoint a person with less priority or no priority. Subject to paragraph (2) of this subsection, nonresidence does not disqualify any person from serving as guardian. Any nonresident who is appointed cannot qualify until the nonresident files with the register or clerk an irrevocable designation by the nonresident of an appropriate person who resides in the State on whom service of process may be made in the same manner and with the effect as if it were served personally in the State on the nonresident. The court may not name an official or employee of a local department of social services, the State Department of Human Services, a local area agency on aging as defined in § 10–101 of the Human Services Article, or the Department of Aging as guardian of the estate.

Where the instrument nominating a guardian excuses a noncorporate guardian from furnishing bond, the court shall not require a bond unless exceptional circumstances are shown to exist which make it necessary to require a bond for the safety of those interested in the administration of the estate. A corporate guardian shall not be required to furnish bond. In the case of a noncorporate guardian, including a substituted or successor or reinstated guardian nominated by the court or nominated under an instrument which is silent as to bond, the court may, subject to subsection (d) of this section, require a bond if, in its discretion, it finds it necessary for the safety of those interested in the administration of the estate. In a guardian estate consisting entirely of cash, deposited as provided in the rules, securities or real property, or any combination of them which cannot be transferred by the guardian without the approval of the court, not exceeding $10,000, the court shall not require a guardian to furnish or continue in effect a bond, unless exceptional circumstances are shown to exist. The penalty of the bond may not be greater than the aggregate value of the property of the estate under the control of the guardian, less the value of securities or money deposited in a financial institution as defined in § 13–301(h) of this title under arrangements requiring an order of the court for their removal, and the value of any land which the guardian, by express limitation of power, lacks power to sell or convey without court authorization. The court may, in lieu of sureties on a bond, accept other security for the performance of the bond, including a pledge of securities or a mortgage of land. The court may at any time, subject to the maximum penalty provided by this section, require the amount of the bond, or the type or value of security, to be changed. The approval of a new bond may not discharge a bond filed previously from any liability which may have accrued before approval. The terms of any bond shall be as provided by the Maryland Rules.

Inventory and accounting in proceedings under this subtitle shall be as provided by the Maryland Rules.

Subject to paragraph (2) of this subsection, a guardian of the property of a minor or disabled person may petition the court to deposit cash belonging to the minor or disabled person in an amount not exceeding $200,000 into a single restricted account. If the amount of cash belonging to a minor or disabled person exceeds $200,000, any excess amount shall be deposited into additional restricted accounts. The amount deposited in an additional restricted account under subparagraph (i) of this paragraph may not exceed $200,000. The aggregate amount deposited in any financial institution may not exceed $200,000. A deposit under subsection (a) of this section may be made into any type of account, including a certificate of deposit, in a financial institution that: Accepts deposits; and Is federally insured; or Is regulated by the Commissioner of Financial Regulation.

An interested person may file a petition for an order: Requiring bond, security, additional bond, or security in an estate where bond can be required; Requiring an accounting of the administration of the estate; Directing distribution; Removing the guardian and appointing a successor guardian; or Granting other appropriate relief. A guardian may petition the appointing court for permission to act in any matter relating to the administration of the estate. Upon hearing after notice and upon good cause shown, the court may issue an appropriate order.

There shall be no jury trial in protective proceedings. Procedures for notice to interested persons, the forms of petitions, and the conduct of and requirements at hearings are as provided in the Maryland Rules. Unless the alleged disabled person has chosen counsel, the court shall appoint an attorney to represent the alleged disabled person in the proceeding. If the alleged disabled person is indigent, the State shall pay a reasonable attorney’s fee. In any action in which payment for the services of a court–appointed attorney for the alleged disabled person is the responsibility of the local department of social services, unless the court finds that it would not be in the best interests of the alleged disabled person, the court shall: Appoint an attorney who has contracted with the Department of Human Services to provide those services, in accordance with the terms of the contract; and In an action in which an attorney has previously been appointed, strike the appearance of the attorney previously appointed and appoint the attorney who is currently under contract with the Department of Human Services, in accordance with the terms of the contract, unless the previously appointed attorney is willing to accept the same fee and the court does not find a conflict of interest.

A guardian shall exercise the care and skill of a person of ordinary prudence dealing with the person’s own property in the administration of the estate and the exercise of the guardian’s powers.

All the provisions of § 15–102 of this article with respect to the powers of a fiduciary and the manner of exercise of those powers and Title 15, Subtitle 6 of this article are applicable to a guardian.

In this section, “family member” means a child, a parent, a spouse, a grandparent, a brother, a sister, an uncle, or an aunt by blood, adoption, or marriage. Except as provided in paragraph (2) of this subsection, a guardian may distribute or disburse property without court authorization or confirmation in accordance with this section. A guardian of a minor or disabled person who is not a family member of the minor or disabled person may not distribute or disburse property without court authorization or confirmation if the distribution or disbursement would financially benefit: Except for reasonable compensation and reimbursement for expenses as authorized under § 13–218 of this subtitle, the guardian; or A family member of the guardian. If a guardian distributes or disburses property in violation of paragraph (2) of this subsection, the guardian is liable for breach of the guardian’s fiduciary duty to the minor or disabled person or to interested persons for resulting damage or loss to the same extent as a trustee of an express trust. A guardian of a minor may pay or apply income and principal from the estate as needed for the clothing, support, care, protection, welfare, and education of the minor. A guardian of a disabled person may pay or apply income and principal from the estate as needed for the clothing, support, care, protection, welfare, and rehabilitation of the disabled person. The guardian shall give consideration to the support and care of the disabled person during the probable period of the estate and the needs of persons dependent upon the disabled person. Income and principal also may be paid or applied: For the benefit of persons legally dependent on the minor or disabled person; and With the approval of the court, for the benefit of other persons maintained and supported in whole or in part by the disabled person before the appointment of a guardian. If a minor or disabled person is “disabled” as defined under 42 U.S.C. § 1382c(a)(3), a guardian of the minor or disabled person may pay or apply income or principal from the estate to establish or fund, for the benefit of the minor or disabled person: A special needs trust, provided that the trustee is subject to the jurisdiction of a court, bonded, and required to file annual accountings of the trust; A pooled asset special needs trust account, provided that the trust has been approved by the attorney general of the state where the minor or disabled person resides; or An ABLE account. When a minor attains the age of majority, the guardian of the minor, after meeting all prior claims and expenses of administration, shall distribute the estate to the former minor as soon as possible, unless the minor is then disabled. The distribution normally shall be in kind. If the guardian is satisfied that the disability of the disabled person has ceased or if the court has found in a proceeding under § 13–221 of this subtitle that the disability has ceased, the guardian, after meeting all prior claims and expenses of administration, shall distribute the estate to the former disabled person as soon as possible. The distribution normally shall be in kind. When a minor or disabled person dies, the guardian shall deliver to the appropriate probate court for safekeeping any will of the deceased person in the guardian’s possession, pay from the estate all commissions, fees, and expenses shown on the court–approved final guardianship account, inform the personal representative or a beneficiary named in it that the guardian has done so, and retain the balance of the estate for delivery to an appointed personal representative of the decedent or other person entitled to it. If a guardianship is terminated for reasons other than the attainment of majority, cessation of disability, or death of the protected person, the guardian shall distribute the estate in accordance with the order of the court terminating the guardianship.

Any limitation on the powers of a guardian contained in a will or other instrument which nominated a guardian should ordinarily be imposed by the court on the guardian. If the court limits any power conferred on the guardian by § 13–214 of this subtitle or § 15–102 of this article, the limitation shall be endorsed on the letters of appointment.

If the exercise of a power is improper, the guardian is liable for breach of the guardian’s fiduciary duty to the minor or disabled person or to interested persons for resulting damage or loss to the same extent as a trustee of an express trust. The rights of purchasers and others dealing with a guardian shall be determined as provided in § 13–219 of this subtitle and are not necessarily affected by the guardian’s breach of fiduciary duty in the transaction.

Letters of guardianship may be recorded in the land records of the county of residence of the minor or disabled person and of any other county where there is real estate in which the estate has an interest. The recordation has the same effect as notice as recording a conveyance from the minor or disabled person to the guardian. Orders of the court modifying or terminating letters of guardianship or authorizing making a conveyance or doing any other act with respect to interests in real estate constituting part of the estate may be recorded in a similar manner and with similar effect.

Except in unusual circumstances and as provided in subsection (c) of this section, the guardian is entitled to compensation and reimbursement for actual and necessary expenses as provided in subsection (b) of this section. No petition or hearing is required to entitle the guardian to compensation and expenses. On the petition of any interested person and on a finding by the court that unusual circumstances exist, the court may increase or decrease compensation. Accounting from July 1, 1981, regardless of whether the guardianship estate was in existence at the time, income commissions are: 6% on all income from real estate, ground rents, and mortgages collected in each year; and 5% on the first $10,000 of all other income collected in each year; 5% on the next $10,000; 4% on the next $10,000; and 3% on any remainder. Income commissions shall be paid from and chargeable against income. Income collected includes a portion of income payable to a trustee but withheld by the payor in compliance with revenue law. Accounting from July 1, 1981, regardless of whether the guardianship estate was in existence at the time, commissions are payable at the end of each year on the fair value of the corpus or principal held in the guardianship estate at the end of each year as follows: 4% on the first $250,000; 25% on the next $250,000; 15% on the next $500,000; and 1% on any excess. Corpus commissions under this paragraph shall be paid out of and chargeable against the corpus. If a guardianship estate terminates, with respect to all or part of the corpus held in the guardianship estate in the course of a year, the commission for that year shall be reduced or prorated according to the part of the year elapsed and the amount of corpus as to which the guardianship estate terminates, and be chargeable, for that part of the year, and with respect to this part of the corpus, at the termination of the guardianship estate, on the then value of the corpus. For selling real or leasehold property, a commission on the proceeds of the sale is payable at the rate allowed by rule of court or statute to guardians appointed to make sales under decrees or orders of the court for the county where the real or leasehold property is situated, or if the property is located outside of this State, for selling similar property in the county where the guardianship estate is being administered. The commission described in subparagraph (i) of this paragraph is payable from the proceeds of the sale when collected. On the final distribution of a guardianship estate or portion of a guardianship estate, an allowance is payable commensurate with the labor and responsibility involved in making the distribution, including the making of a division, the ascertainment of the parties entitled to the distribution, the ascertainment and payment of taxes, and any necessary transfer of assets. The allowance described in subparagraph (i) of this paragraph is subject to revision or determination by a court having jurisdiction. In the absence of special circumstances, the allowance described in subparagraph (i) of this paragraph shall be equal to 0.5% of the fair value of the corpus that is distributed. A guardian may petition the court for the county where the guardianship estate is located and obtain approval for an increase in fees after giving notice of the action to the interested parties of the guardianship estate. The legal and court costs incurred by the guardian in accordance with a court review under paragraph (5) of this subsection shall be charged against fees of the guardian and may not be assumed by the guardianship estate or the interested parties. If the guardian is appointed as the guardian of a disabled person who is a recipient of long–term care services and supports under the Maryland Medical Assistance Program and whose income is subject to § 15–122.3 of the Health – General Article, the guardian is not entitled to receive more than $50 per month in compensation unless the court makes a finding that unusual circumstances exist.

In the absence of actual knowledge or of reasonable cause to inquire whether the guardian is improperly exercising the guardian’s power, a person dealing with the guardian need not inquire whether the guardian is exercising it properly, and is protected as if the guardian properly exercised the power, except that every person is charged with actual knowledge of any limitations endorsed on the letters of guardianship. A person need not see to the proper application of estate assets paid or delivered to a guardian.

The appointment of a guardian terminates when the guardianship terminates under § 13–221 of this subtitle and may be terminated sooner by the guardian’s death, disability, resignation, or removal. Termination of appointment of a guardian has the effects provided in this section. Termination ends the right and power pertaining to the office of guardian. Unless otherwise ordered by the court, a guardian whose appointment has been terminated shall perform acts necessary to protect the estate and deliver the property to the successor guardian. Subject to the provisions of the Maryland Rules, termination does not discharge a guardian from liability for transactions or omissions occurring before termination, or relieve the guardian of the duty to preserve, account for, and deliver to a successor property subject to the guardian’s control. All lawful acts of a guardian before the termination of appointment shall remain valid and effective. The death of a guardian or the decree of a court of competent jurisdiction that a guardian is under legal disability shall terminate the guardian’s appointment. The personal representative of a deceased guardian or the person appointed to protect the estate of a guardian under legal disability shall: Have the duty to protect property belonging to the estate being administered by the deceased or disabled guardian; Have the power to perform acts necessary for the protection of property; Immediately account for and deliver the property to a successor guardian; and Apply immediately to the court for the appointment of a successor guardian to carry on the administration of the estate which was being administered by the deceased or disabled guardian in accordance with the Maryland Rules. A guardian who desires to resign the guardian’s office may do so in accordance with the provisions of the same Maryland Rules by which a fiduciary may resign the fiduciary’s office.

The minor or disabled person, the minor’s or disabled person’s personal representative, the guardian, or any other interested person may petition the court to terminate the guardianship proceedings. A guardianship proceeding shall terminate on: The cessation of the minority or disability; The death or presumptive death of the minor or disabled person; Transfer of all the assets of the estate to a foreign fiduciary; or Other good cause for termination as may be shown to the satisfaction of the court. Termination and final distribution of the estate of a former minor or disabled person shall be made in compliance with the provisions of the Maryland Rules, applying to a fiduciary.

A guardian, conservator, committee, or other similar fiduciary, appointed by the appropriate court of another jurisdiction to manage the property of a protected person who is a resident of that jurisdiction, may exercise in the State all powers of the office, including the power to: Sell, purchase, or mortgage real estate in the State; and Collect, receipt for, take possession of, and remove to the other jurisdiction: Money due; Tangible personal property; or An instrument evidencing a debt, an obligation, a stock, or a chose in action located in the State. Subject to any statute or rule relating to nonresidents, the guardian, conservator, committee, or other similar fiduciary, appointed by the appropriate court of another jurisdiction, may sue and be sued in the State. Before receiving actual notice of the pendency of a guardianship proceeding in the State, a person who has changed the person’s position by relying on the powers granted by this section may not be prejudiced by the pendency of the proceeding.

On the filing of a petition for guardianship of the property of an alleged disabled person, a party to the guardianship may file a request for the stay of any of the following civil actions or proceedings against the alleged disabled person with the court presiding over the civil action or proceeding: An action for failure to pay rent under § 8–401 of the Real Property Article; A warrant of restitution under § 8–401 of the Real Property Article; An action for wrongful detainer under § 14–132 of the Real Property Article; A foreclosure action under § 7–105.1 of the Real Property Article; A sheriff’s sale under Title 11, Subtitle 5 of the Courts Article; and An action against the property of the alleged disabled person. A party to the guardianship of the property of an alleged disabled person requesting the stay of an action under subsection (a) of this section shall: Provide notice of the petition and request to all parties to the action for which the stay is sought; and Within 90 days after filing the petition or the period of the stay determined under subsection (c)(1) of this section, notify a court granting a stay under this section and any party to that action of: The appointment of a temporary or permanent guardian of the property of the disabled person; or The denial, dismissal, or withdrawal of the petition. Unless extended for good cause, a stay under subsection (a) of this section may remain in effect for not more than 90 days after the filing of the petition. The stay under subsection (a) of this section shall automatically be lifted on: The appointment of a temporary or permanent guardian of the property of the disabled person, whichever occurs first; or The denial of the petition. To effectuate service of process on an alleged disabled person for an action stayed under subsection (a) of this section, the temporary or permanent guardian of the property of the disabled person, as appropriate, must be served.