Maryland Guardianship and Financial Exploitation Protection for Disabled Adults

Guardianship Alone Does Not Prevent Exploitation

Parents of adults with disabilities worry — reasonably — about financial scams, predatory contracts, high-interest loans, and manipulative relationships. The instinct is to pursue guardianship of the property so a court-appointed guardian controls all financial decisions. But guardianship is reactive, not preventive. A guardian cannot monitor every transaction in real time, and the court's oversight consists of annual fiduciary audits — after the fact.

A more effective approach layers multiple protections, some of which require no court involvement at all.

Layer 1: Structure the Accounts

ABLE accounts provide the strongest structural protection for adults with disabilities who receive SSI or Medicaid. Up to $100,000 in an ABLE account is completely excluded from the SSI $2,000 resource limit. The account holder — or a designated person with signature authority — controls the funds, but the account itself is structured to prevent unauthorized access. Annual contribution limits are $20,000 (2026), with an additional contribution available for working beneficiaries who do not participate in an employer-sponsored retirement plan. As of January 2026, the disability onset age expanded from 26 to 46, making ABLE accounts available to far more families.

For a detailed comparison of ABLE accounts versus special needs trusts, see our Maryland ABLE account vs. special needs trust guide.

Representative payee — If your family member receives SSI or SSDI, a representative payee manages those specific funds under SSA oversight. The payee must spend benefits on basic needs and maintain records. This removes federal benefit money from the individual's direct control, which is often where exploitation begins.

Restricted bank accounts — A guardian of the property can petition the court to place the ward's assets in a restricted, interest-bearing account that cannot be accessed without a prior written court order under Maryland Rule 10-702. This arrangement may support a court's waiver of the surety bond while providing strong protection against unauthorized withdrawals.

Layer 2: Build Decision-Making Supports

Supported decision-making agreements under Maryland's 2022 SDM Act allow the individual to name trusted supporters who help evaluate financial decisions without taking control. The statute explicitly prohibits a supporter from making decisions or executing transactions on behalf of the adult. This framework builds financial literacy while maintaining guardrails.

Financial power of attorney — If the individual has the capacity to execute a POA, a durable financial power of attorney under Estates and Trusts Title 17 grants a trusted agent concurrent authority over financial transactions. The 2022 amendments expanded agent powers to include Medicaid spend-down planning, and third parties must accept a statutory POA or notify the agent of a refusal within strict timelines.

Layer 3: Guardianship of the Property (When Needed)

When an adult with a disability genuinely cannot manage financial affairs even with the supports above, a guardianship of the property under Estates and Trusts § 13-201 places all financial management under court supervision. The guardian must:

• Post a corporate surety bond based on the total value of personal property plus one year of anticipated income, unless the court waives the requirement for good cause under Maryland Rule 10-702
• File an inventory (Form CC-GN-011) within 60 days of appointment
• Submit annual fiduciary accounts to the Trust Clerk
• Avoid all self-dealing and use the ward's assets exclusively for the ward's benefit

The annual fiduciary fees range from $20 (assets under $10,000) to $40 (assets over $25,000).

Reporting Exploitation

If exploitation has already occurred or is in progress, contact Adult Protective Services (APS) to make a report — you do not need a guardianship order to file it. APS can assess reports involving abuse, neglect, self-neglect, and financial exploitation of vulnerable adults. A guardianship petition can proceed simultaneously, but making an APS report does not require one.

The Practical Approach

Start with structural protections (ABLE account, representative payee) and decision-making supports (SDMA, financial POA). These cost nothing or very little and they work immediately. If those layers prove insufficient — the individual is still signing predatory contracts, giving away assets, or being manipulated despite having supports in place — then a guardianship of the property adds court-supervised oversight as a backstop.

The Maryland Adult Guardianship & Alternatives Guide includes a benefits and asset tracking worksheet designed specifically for this layered approach, plus step-by-step instructions for setting up each protection level.

See more Maryland guides →