A conservator is authorized to invest estate funds in the following and shall not otherwise be liable for such investment, except in the case of gross neglect:
(Code 1981, §29-5-32, enacted by Ga. L. 2004, p. 161, § 1; Ga. L. 2010, p. 579, § 15/SB 131; Ga. L. 2013, p. 141, § 29/HB 79; Ga. L. 2014, p. 866, § 29/SB 340.)
Law reviews.- For article, "The Scope of Permissible Investments by Fiduciaries Under Georgia Law," see 19 Ga. St. B.J. 6 (1982). For note discussing and comparing the prudent man rule and the legal list rule in trustee investment, see 15 Mercer L. Rev. 530 (1964).
JUDICIAL DECISIONS
Editor's notes.
- In light of the similarity of the statutory provisions, decisions under former Civil Code 1895, § 3432, former Civil Code 1910, § 4008, and former Code 1933, §§ 49-215, 49-216 and 49-217 are included in the annotations for this Code section.
For a discussion of liability of bank which receives fruits of misappropriation by trustee, see Georgia R.R. Bank & Trust Co. v. Liberty Nat'l Bank & Trust Co., 180 Ga. 4, 177 S.E. 803 (1934) (decided under former Code 1933, §§ 49-215, 49-217).
Former Civil Code 1910, § 3432 (former O.C.G.A. § 29-2-14) was inapplicable to exchange of lands. Mills v. Geer, 111 Ga. 275, 36 S.E. 673, 52 L.R.A. 934 (1900) (decided under former Civil Code 1895, § 3432).
Guardian acted in fiduciary capacity and was bound to utmost good faith with court and ward in interest of latter in proceeding under former Code 1933, § 49-216 (former O.C.G.A. § 29-2-14). American Sur. Co. v. Adams, 190 Ga. 575, 10 S.E.2d 30 (1940) (decided under former Code 1933, § 49-216).
No presumption that investments comply with statutes.
- Although guardian may in good faith have disposed of funds by investing a portion of them in real estate for benefit of the ward, who afterwards during minority occupies the real estate as a home, there is no presumption that these expenditures are legally made by the guardian's having obtained from judge an order for investment of funds in real estate. New York Life Ins. Co. v. Gilmore, 40 Ga. 431, 149 S.E. 799 (1929), rev'd on other grounds, 171 Ga. 894, 157 S.E. 188 (1931) (decided under former Civil Code 1910, § 4008).
Investment by guardian in violation of former Code 1933, § 49-216 (former O.C.G.A. § 29-2-14) was a breach of guardian's statutory bond that would authorize suit to recover amount from guardian and guardian's surety. American Sur. Co. v. Adams, 190 Ga. 575, 10 S.E.2d 30 (1940) (decided under former Code 1933, § 49-216).
For a discussion of liability of guardian for real estate investments without court order, see Paulk v. Roberts, 42 Ga. App. 79, 155 S.E. 55 (1930) (decided under former Civil Code 1910, § 4008).
Cited in Springer v. Oliver, 21 Ga. 517 (1857); Brown v. Wright, 39 Ga. 96 (1869); Mobley v. Phinizy, 42 Ga. App. 33, 155 S.E. 73 (1930); Citizens' & S. Nat'l Bank v. Clark, 172 Ga. 625, 158 S.E. 297 (1931); Bacon v. Smith, 222 Ga. App. 542, 474 S.E.2d 728 (1996).
RESEARCH REFERENCES
Am. Jur. 2d.
- 39 Am. Jur. 2d, Guardian and Ward, §§ 86 et seq., 129 et seq.
C.J.S.- 39 C.J.S., Guardian and Ward, § 115 et seq.
ALR.
- Power of court to authorize guardian to borrow ward's money, 30 A.L.R. 461.
Right of trustee, executor, administrator, or guardian to purchase property of estate or trust at sale brought about by third person, 77 A.L.R. 1513.
Effect of beneficiary's consent to, acquiescence in, or ratification of, improper investments or loans (including failure to invest) by trustee or other fiduciary, 128 A.L.R. 4.
Guardian's liability for interest on ward's funds, 72 A.L.R.2d 757.