CPG CPG Property and Asset Management

Question 1

What is the primary fiduciary duty of a CPG when managing a ward's property and assets?

Accepted Answer

Manage assets prudently and solely in the ward's best interest

Answer

Maximize investment returns regardless of associated risk

Answer

Combine the ward's assets with the guardian's for easier management

Answer

Liquidate all non-cash assets as quickly as possible

Question 2

Which investment standard typically governs decisions made by a professional guardian regarding a ward's assets?

Accepted Answer

The prudent investor standard requiring care, skill, and caution

Answer

The speculative investor standard seeking maximum gains

Answer

The guardian's personal investment philosophy and preferences

Answer

The maximum return standard regardless of risk level

Question 3

Why must a CPG maintain separate accounts for each ward's funds?

Accepted Answer

It prevents commingling and protects each ward's assets from being mixed with others

Answer

It is more convenient for the guardian's bookkeeping

Answer

Banks require all customers to maintain separate accounts

Answer

It reduces the guardian's personal tax obligations

Question 4

What is the purpose of completing an inventory at the commencement of a guardianship?

Accepted Answer

To document all of the ward's assets and liabilities at the time guardianship begins

Answer

To calculate the guardian's fee schedule

Answer

To record only the ward's checking and savings accounts

Answer

To establish the guardian's legal authority over the ward

Question 5

When should a CPG obtain an independent appraisal of a ward's real property?

Accepted Answer

Before selling, transferring, or making significant decisions about the property

Answer

Never, because appraisals are prohibitively expensive

Answer

Only when explicitly ordered by the court

Answer

Only after a sale has already been completed

Question 6

A CPG discovers a ward owns real property that is vacant, generating no income, and incurring high maintenance costs. What should the guardian do?

Accepted Answer

Evaluate all available options and seek court authorization before making major decisions

Answer

Immediately sell the property without seeking court approval

Answer

Do nothing since the property legally belongs to the ward

Answer

Transfer the property to a family member for management