Section 20 of The Guardians and Wards Act, 1890
- (1)A guardian stands in a fiduciary relation to his ward, and, save as provided by the will or other instrument, if any, by which he was appointed, or by this Act, he must not make any profit out of his office.
- (2)The fiduciary relation of it guardian to his ward extends to and affects purchases by the guardian of the property of the ward, and by the ward of the property of the guardian, immediately or soon after the ward has ceased to be a minor, and generally all transactions between them while the influence of the guardian still lasts or is recent.
Summary
- A guardian stands in a fiduciary relation to their ward, meaning they hold a strict position of trust.
- A guardian is not allowed to make any personal profit from their position, unless a will, a specific instrument, or the Act itself allows it.
- This rule of trust continues to affect transactions between them even after the ward grows up, as long as the guardian's influence is still recent or active.
- Specifically, the law restricts the guardian from buying the ward's property and the ward from buying the guardian's property immediately after the ward ceases to be a minor.
Practical examples
FAQ
1. Can a guardian earn a profit from managing a ward's estate?
Not generally. They can only make a profit if the will that appointed them, another specific legal document, or the Act explicitly allows it.
2. What happens if an adult ward wants to sell property to their former guardian?
The law watches this closely. If the transaction happens soon after the ward becomes an adult, or while the guardian's influence still lasts, the strict fiduciary rules still apply.
3. What does fiduciary relation mean?
It means a strict legal and ethical relationship based on high trust, where the guardian must act entirely for the ward's benefit, not their own.
Test yourself
Q1.Under Section 20 of The Guardians and Wards Act, 1890, what kind of relationship does a guardian have with their ward?
Q2.Under Section 20 of The Guardians and Wards Act, 1890, when is a guardian permitted to make a profit out of their office?
Q3.Under Section 20 of The Guardians and Wards Act, 1890, how long does the fiduciary restriction on property transactions between a guardian and a ward last?
Q4.Under Section 20 of The Guardians and Wards Act, 1890, which specific type of transaction is explicitly restricted even after the ward ceases to be a minor?