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Senate committee moves to ease court approval for low-risk guardianship investments
Summary
SB501 was approved to shift certain low-risk securities (insured CDs, federal land-bank notes, school district bonds) out of the category requiring prior court approval, reducing time and cost for guardianships while retaining fiduciary duties for investment prudence.
The Senate committee approved SB501, a bill that reallocates several types of low-risk instruments in the guardianship investment statute so fiduciaries can invest without seeking prior court approval for those specific instruments.
Sponsor Senator Malek said the statute currently mandates court approval for most investments other than direct U.S. obligations or state bonds; the bill moves school-district bonds, certain federal land-bank notes, federally insured CDs and share certificates into the class of permissible investments that do not require prior court approval. Malek said he consulted the State Bank Department and others who agreed these instruments pose little credit risk and do not justify the extra court expense for guardianships.
Malek emphasized that fiduciaries still retain the duty to avoid undue risk, and that guardianships that require higher-risk investments could continue to seek prior court approval. The committee asked questions and heard no public opposition; Senator Chesterfield moved to pass SB501 and the panel approved the bill.
