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What steps should we take when a customer is adjudicated disabled and appointed a plenary guardian over his estate and person? Do we need to reissue debit cards, get new signature cards, set up new online accounts, etc.? Also, if we establish new accounts in the name of the guardian, can we issue the disabled customer his own debit card to allow him to access the guardian’s new accounts?

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When a customer is appointed a guardian, we recommend closing the customer’s existing bank accounts and depositing the funds in a new account, titled as “[guardian’s name], guardian of the estate of [customer’s name].” In opening the new accounts, you should obtain new signature cards with the guardian’s signature, issue new debit cards to the guardian, and have the guardian register for online access to the new accounts.

Regarding whether to issue the disabled customer his own debit card for the guardian’s new accounts, we stress that the court order appoints a plenary guardian of your customer’s estate and person. Under the Probate Act, this type of guardianship establishes your customer’s total incapacity to manage his own personal and financial affairs. Consequently, we do not recommend issuing the disabled customer his own debit card to access the accounts set up in the name of the guardian.

However, outside of your card issuer's rules, your bank may issue (or not issue) debit cards at its own discretion. Therefore, whether you issue this customer his own debit card is a business decision for your bank to make.

For resources related to our guidance, please see:

  • Illinois Probate Act, 755 ILCS 5/11a-12(c) (“If the respondent is adjudged to be a person with a disability and to be totally without capacity as specified in Section 11a-3, and if the court finds that limited guardianship will not provide sufficient protection for the person with a disability, his or her estate, or both, the court shall appoint a plenary guardian for the respondent's person or estate or both.”)
  • Illinois Probate Act, 755 ILCS 5/11a-3 (“If the court adjudges a person to be a person with a disability, the court may appoint (1) a guardian of his person, if it has been demonstrated by clear and convincing evidence that because of his disability he lacks sufficient understanding or capacity to make or communicate responsible decisions concerning the care of his person, or (2) a guardian of his estate, if it has been demonstrated by clear and convincing evidence that because of his disability he is unable to manage his estate or financial affairs, or (3) a guardian of his person and of his estate.”)