NATIONAL GUARDIANSHIP ASSOCIATION LATEST 2026
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
GRADED A+
✔✔Parens Patriae - ✔✔A legal principle meaning that the state or the government can
act to determine what is in the best
interests of an individual, even if the individual disagrees, on the basis of evidence of
incapacitation or
charges of personal or serious property mismanagement. Literally, the "father of the
country."
✔✔Petition - ✔✔A formal, written request presented to a court or other official body.
(Black's) For example, relative to
guardianship, the document filed to initiate the process for adjudication of disability and
appointment of a
guardian.
✔✔Physician's Report - ✔✔A report required, in some states, in relationship to a
guardianship proceeding, which substantiates the
need for a substitute decision maker. Also Examining Committee Report.
✔✔Prudent Person - ✔✔A person who acts cautiously in the handling of assets. See
Prudent Person Rule.
✔✔Prudent Person Rule - ✔✔An investment standard that considers the
reasonableness of an investment based on whether a prudent
person of discretion and intelligence, who is seeking reasonable income and
preservation of capital,
would make that investment.
✔✔Prudent Investor Rule - ✔✔All investments must be considered as part of an overall
portfolio rather than individually. No investment
is inherently imprudent or prudent. The rule recognizes that certain nontraditional
investment vehicles
may actually be prudent and the guardian who does not use risk-reducing strategies
may be penalized.
Under most circumstances, the ward's assets must be diversified. The guardian is
obligated to spread
portfolio investments across asset classes and potentially across global markets to both
enhance
performance and reduce risk. The possible effects of inflation must be considered as
part of the
investment strategy. The guardian shall either demonstrate investment skill in managing
assets or shall
delegate investment management to another qualified party.
, ✔✔Psychotropic Medications - ✔✔Any medication prescribed for the management of
behavior.
✔✔Representative Payee - ✔✔An individual, agency, or organization named by a
governmental agency to receive government benefits
on behalf of, and for the benefit of, the beneficiary entitled to such benefits.
✔✔Self-determination - ✔✔A doctrine that states the actions of a person are
determined by that person. It is free choice of one's acts
without external force.
✔✔Social Services - ✔✔Services provided to meet social needs, including provisions
for public benefits, case management,
money management services, adult protective services, companion services, and other
similar services.
✔✔Substituted Judgment - ✔✔The principle of decision-making which requires
implementation of the course of action which comports
with the individual ward's or beneficiary's known wishes expressed prior to the
appointment of the
guardian or representative payee, provided the individual was once capable of
developing views relevant
to the matter at issue and reliable evidence of these views remains. Current opinions
and desires of the
ward or beneficiary shall be examined and are relevant to a determination of the ward's
or beneficiary's
views prior to appointment of the guardian or representative payee.
✔✔Sui Juris - ✔✔Of full age and capacity; possessing full social and civil rights
✔✔Surety Bond - ✔✔Obligation of a guarantor to pay a second party upon default by a
third party in the performance
the third party owes to the second party.
✔✔Trustee - ✔✔One who, having legal title to property, holds it in trust for the benefit of
another and owes a fiduciary duty
to that beneficiary. Generally a trustee's duties are to convert to cash all debts and
securities that are not
qualified legal investments, to re-invest the cash in proper securities, to protect and
preserve the trust
property, and to ensure that it is employed solely for the beneficiary in accordance with
the directions
contained in the trust instrument.
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
GRADED A+
✔✔Parens Patriae - ✔✔A legal principle meaning that the state or the government can
act to determine what is in the best
interests of an individual, even if the individual disagrees, on the basis of evidence of
incapacitation or
charges of personal or serious property mismanagement. Literally, the "father of the
country."
✔✔Petition - ✔✔A formal, written request presented to a court or other official body.
(Black's) For example, relative to
guardianship, the document filed to initiate the process for adjudication of disability and
appointment of a
guardian.
✔✔Physician's Report - ✔✔A report required, in some states, in relationship to a
guardianship proceeding, which substantiates the
need for a substitute decision maker. Also Examining Committee Report.
✔✔Prudent Person - ✔✔A person who acts cautiously in the handling of assets. See
Prudent Person Rule.
✔✔Prudent Person Rule - ✔✔An investment standard that considers the
reasonableness of an investment based on whether a prudent
person of discretion and intelligence, who is seeking reasonable income and
preservation of capital,
would make that investment.
✔✔Prudent Investor Rule - ✔✔All investments must be considered as part of an overall
portfolio rather than individually. No investment
is inherently imprudent or prudent. The rule recognizes that certain nontraditional
investment vehicles
may actually be prudent and the guardian who does not use risk-reducing strategies
may be penalized.
Under most circumstances, the ward's assets must be diversified. The guardian is
obligated to spread
portfolio investments across asset classes and potentially across global markets to both
enhance
performance and reduce risk. The possible effects of inflation must be considered as
part of the
investment strategy. The guardian shall either demonstrate investment skill in managing
assets or shall
delegate investment management to another qualified party.
, ✔✔Psychotropic Medications - ✔✔Any medication prescribed for the management of
behavior.
✔✔Representative Payee - ✔✔An individual, agency, or organization named by a
governmental agency to receive government benefits
on behalf of, and for the benefit of, the beneficiary entitled to such benefits.
✔✔Self-determination - ✔✔A doctrine that states the actions of a person are
determined by that person. It is free choice of one's acts
without external force.
✔✔Social Services - ✔✔Services provided to meet social needs, including provisions
for public benefits, case management,
money management services, adult protective services, companion services, and other
similar services.
✔✔Substituted Judgment - ✔✔The principle of decision-making which requires
implementation of the course of action which comports
with the individual ward's or beneficiary's known wishes expressed prior to the
appointment of the
guardian or representative payee, provided the individual was once capable of
developing views relevant
to the matter at issue and reliable evidence of these views remains. Current opinions
and desires of the
ward or beneficiary shall be examined and are relevant to a determination of the ward's
or beneficiary's
views prior to appointment of the guardian or representative payee.
✔✔Sui Juris - ✔✔Of full age and capacity; possessing full social and civil rights
✔✔Surety Bond - ✔✔Obligation of a guarantor to pay a second party upon default by a
third party in the performance
the third party owes to the second party.
✔✔Trustee - ✔✔One who, having legal title to property, holds it in trust for the benefit of
another and owes a fiduciary duty
to that beneficiary. Generally a trustee's duties are to convert to cash all debts and
securities that are not
qualified legal investments, to re-invest the cash in proper securities, to protect and
preserve the trust
property, and to ensure that it is employed solely for the beneficiary in accordance with
the directions
contained in the trust instrument.
