Planning Ahead: Understanding Guardianships and Financial Care for San Diego Gas & Electric Families

Healthcare Provider Update: San Diego Gas & Electric (SDG&E) primarily offers healthcare coverage for its employees through various health insurance providers, including major players in the market such as Anthem Blue Cross and Kaiser Permanente. These providers typically offer a range of plans that cover various medical needs, including preventive care, hospital visits, and prescription medications. As we approach 2026, significant healthcare cost increases are anticipated for SDG&E employees. With the potential expiration of enhanced federal premium subsidies under the Affordable Care Act, many policyholders may see their out-of-pocket costs skyrocketing by over 75%. Increased medical costs, driven by rising hospital and prescription drug prices, combined with aggressive rate hikes from insurers, could lead to premium increases of up to 66.4% in some states. This perfect storm of factors will pose a substantial financial challenge for workers relying on employer-sponsored healthcare plans. Click here to learn more

'San Diego Gas & Electric employees should view proactive estate planning as essential to family continuity, making it important to establish powers of attorney and trusts early to help reduce stress and safeguard loved ones from unnecessary court involvement.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'San Diego Gas & Electric employees can better support aging family members by putting durable powers of attorney and health care proxies into place early. This type of proactive planning can help families maintain control and circumvent unnecessary court intervention.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. The differences between guardianships and conservatorships and how they function.

2. Common challenges and potential risks involved in managing these arrangements.

3. Key proactive steps to reduce the need for court involvement through effective estate planning.

Understanding Conservatorships, Guardianships, and Financial Planning for Elderly Family Members

For San Diego Gas & Electric employees caring for aging parents or relatives, it’s common to wonder when more active caregiving may become necessary. As loved ones face age-related decline or cognitive changes, there may come a time when they can no longer manage daily personal or financial responsibilities independently.

Court involvement through a guardianship or conservatorship is often unnecessary if estate planning documents, such as a trust or powers of attorney, are already in place. Still, it’s important to understand how these legal arrangements work in case they become needed in the future.

The Roles of Conservatorships and Guardianships

Under a guardianship or conservatorship, a court appoints a fiduciary to manage an individual’s personal care and, in some cases, their financial matters. The judge defines the scope of authority, which can range from limited to full control. These roles can be filled by family members, trusted friends, or qualified professionals.

While the terms “guardian” and “conservator” are sometimes used interchangeably, their legal definitions vary by state. In many states, a conservator handles financial responsibilities, while a guardian oversees personal and health care decisions. For instance, in California, a conservator of the estate manages financial matters, while a conservator of the person makes decisions related to health and daily living.

A guardianship or conservatorship generally remains in effect until the individual regains capacity, the court terminates the arrangement, or the person passes away.

Risks and Difficulties

While intended to help vulnerable individuals, these arrangements can introduce risks. Disagreements among family members or co-guardians may lead to legal expenses or misuse of funds. Some government and court reports have documented instances of abuse or mismanagement by appointed guardians, underscoring the importance of transparency and accountability.

Serving as a guardian or conservator requires diligence, accurate record-keeping, and a strong sense of responsibility.

Planning Ahead to Reduce Court Involvement

San Diego Gas & Electric families can take several forward-looking steps to help reduce the need for a guardianship or conservatorship:

• Durable Financial Power of Attorney: This document allows an appointed agent to make financial decisions if the individual becomes unable to do so. It often removes the need for a financial conservatorship.

• Health Care Power of Attorney or Health Care Proxy: This authorizes an agent to make medical and care-related decisions if the person becomes incapacitated.

• Trusts: Establishing a trust gives a designated trustee control over certain assets, with successor trustees stepping in if the grantor becomes unable to manage the trust. Naming a professional or institutional trustee can reduce potential conflicts.

• Supported Decision-Making (SDM): SDM allows capable individuals to appoint trusted supporters who help them make informed decisions without losing autonomy. Not all states recognize this option, but its use is increasing.

• Team Approach: Multiple individuals can share fiduciary responsibilities—for example, one may handle health care decisions while another manages finances. This division of duties creates checks and balances.

• Account Monitoring and Trusted Contact: Financial firms enable clients to name a trusted contact to be alerted if unusual activity occurs. Monitoring tools such as EverSafe can identify irregular withdrawals, missed payments, or spending changes.

The Value of Preparation

For those managing substantial assets or business interests, proper documentation and fiduciary appointments can support family continuity if incapacity occurs. Thoughtful preparation can help preserve family resources, maintain dignity, and ease stress during uncertain times.

If you or your family members are San Diego Gas & Electric employees seeking guidance on retirement or incapacity planning, The Retirement Group can assist. Our experienced team specializes in helping employees from large corporations plan for future financial needs. To learn more, contact The Retirement Group at (800) 900-5867 to discuss your situation and explore available options.

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Sources:

• 1. Judicial Council of California.  Handbook for Conservators: 2016 Revised Edition.  Judicial Council of California, 2016. PDF.

• 2. U.S. Government Accountability Office.  Elder Abuse: The Extent of Abuse by Guardians Is Unknown, but Some Measures Exist to Help Protect Older Adults.  GAO-17-33, 16 Nov. 2016. PDF.

• 3. Financial Industry Regulatory Authority. “Regulatory Notice 17-11: Financial Exploitation of Seniors—Trusted Contact Person (Rule 4512) and Temporary Holds (Rule 2165).” FINRA, March 2017. PDF.

• 4. Consumer Financial Protection Bureau.  Managing Someone Else’s Money: Help for Agents under a Power of Attorney.  CFPB Publication 13041, 2022. PDF.

• 5. National Council on Disability.  Beyond Guardianship: Toward Alternatives That Promote Greater Self-Determination.  22 Mar. 2018. PDF.