Can the guardianship of a person who transfers and withdraws all bank savings of the ward without providing corresponding expenditure vouchers, thereby severely damaging the ward¡¯s legitimate rights and interests, be revoked?

Recently, the Shanghai Jing'an District People's Court (hereinafter referred to as the "Jing'an Court") concluded a civil case involving an elderly individual where guardianship was revoked due to severe damage to the ward¡¯s legitimate rights and interests.

[Case Review]

The applicant, Li Ming (a pseudonym), and the respondent, Li Jun (a pseudonym), are brothers. The ward, Aunt Li, is their younger sister. Aunt Li, who is nearly seventy years old, has never married or had children. She has suffered from chronic schizophrenia since she was in her forties and has undergone long-term rehabilitation treatment at a mental health center and a nursing home. Since Aunt Li's parents passed away many years ago, in 2015, after consultation among her siblings, the residents' committee appointed her second brother, Li Jun, as her guardian.

Initially, Aunt Li kept her bankbook herself. As Aunt Li's condition worsened, in May 2017, Li Jun took possession of and began managing her identity card, household register, bankbook, and other documents. Without informing his other siblings, he transferred more than CNY 780,000 from Aunt Li's bank savings into his wife's account. Li Jun also withdrew a total of more than CNY 430,000 from Aunt Li's pension, allowance, and other accounts. In addition, Li Jun transferred his son's household registration to the public housing where Aunt Li was registered and had long resided.

Upon learning about his younger brother Li Jun's actions regarding the transfer of their mother Aunt Li's household registration, Aunt Li's eldest brother Li Ming was deeply shocked and filed a lawsuit in court, seeking to revoke Li Jun's guardianship and have himself appointed as Aunt Li's guardian.

Li Jun argued that the transfer of more than CNY 780,000 from the ward's bank savings was for financial management on behalf of the ward, and that the withdrawals of the ward's pension were used for Aunt Li's medical treatment and daily living expenses. Due to a lack of awareness regarding the importance of retaining evidence, many receipts were not preserved, and he could only provide receipts and expenditure vouchers totaling more than CNY 160,000 at present.

[Case Study]

After hearing the case, the Jing'an District People's Court held that a guardian shall perform guardianship duties in accordance with the principle of being most beneficial to the ward, act on behalf of the ward in civil legal acts, and protect the ward's personal rights, property rights, and other legitimate rights and interests.

In this case, Li Jun transferred all of Aunt Li's savings without justification and only returned the more than CNY 780,000 to Aunt Li's account after multiple clarifications by the people's court. Secondly, regarding the portion of the more than CNY 430,000 withdrawn, despite Aunt Li's long-term hospitalization, Li Jun could only provide medical and nursing receipts amounting to more than CNY 160,000. The remaining more than CNY 270,000 was unaccounted for, and there were no other accounts or expenditure vouchers to support it. Lastly, Li Jun exhibited significant deficiencies in fulfilling his duties as a property guardian. During the six-year guardianship period, he not only failed to provide detailed accounts of specific expenditures but also did not report on the performance of his guardianship duties to relatives and friends, including the applicant. Li Jun¡¯s aforementioned actions have severely infringed upon the Aunt Li's legitimate rights and interests. Additionally, Li Jun stated that due to mobility issues, he primarily entrusted his wife with guardianship matters. Therefore, his physical condition was also deemed unsuitable for continuing as Aunt Li's guardian.

Consequently, the Jing'an Court ruled to revoke Li Jun's guardianship qualifications in accordance with the law.

Considering Li Ming's strong willingness to serve as Aunt Li's guardian, along with Aunt Li's current personal care needs and circumstances, and after comprehensive assessing Li Ming's suitability¡ªincluding his willingness, physical health, and ability to fulfill guardianship duties¡ªthe court determined that appointing Li Ming as Aunt Li's guardian would best serve her interests.

The guardianship system refers to a legal framework that supervises and protects the personal, property, and other legitimate civil rights and interests of individuals lacking full civil capacity or with limited civil capacity. In addressing guardianship matters for such individuals, including incapacitated elderly and patients with specific illnesses, the people's courts will uphold the principle of "maximizing the ward's interests" to safeguard their legal rights and interests.

I. Parties to guardianship and application for revocation of guardianship

According to the relevant provisions of the Civil Code of the People's Republic of China, when an adult lacks or has limited civil capacity and requires a guardian, the guardian shall be appointed in the following order: spouse, parents, children, other close relatives, and other individuals or organizations willing to serve as guardians. However, if the guardian fails to properly fulfill their guardianship duties and seriously impairs the legitimate rights and interests of the ward, relevant parties may apply to the people's court for revocation of the guardianship.

The parties eligible to apply to the people's court for revocation of guardianship are quite broad, including those legally qualified to be guardians, such as: close relatives of the ward, including the spouse, parents, children, siblings, etc.; as well as other parties legally qualified to be guardians, such as residents' committees, villagers' committees, schools, medical institutions, women's federations, disabled persons' federations, etc. There is no legal stipulation regarding the order in which these subjects should apply for revocation of guardianship qualifications. Therefore, any qualified individual or organization can apply to the people's court if there is serious harm to the ward's physical or mental health. If neither the guardian nor other qualified individuals or organizations apply in a timely manner, the civil affairs department is obligated to do so.

II. Guardians shall fulfill their guardianship duties in accordance with the law

A guardian's duties are to act on behalf of the ward in civil legal matters and to protect the ward's personal rights, property rights, as well as other legitimate rights and interests. The fulfillment of guardianship duties by a guardian in accordance with the law is protected by law. In the event that a guardian infringes upon the personal, property, or other legitimate interests of the ward, other individuals with guardianship qualifications may apply for the revocation of the guardian¡¯s qualifications. Furthermore, if a guardian causes losses to the ward due to improper fulfillment of guardianship duties, they shall also bear corresponding legal responsibility.

In this case, Guardian Li Jun engaged in actions such as transferring and withdrawing the ward's bank savings, severely infringing upon Aunt Li's legitimate rights and interests. The court lawfully revoked his guardian's qualifications and appointed the applicant, Li Ming, as the new guardian, adhering to the principle of maximizing the ward's interests.

III. Guardianship is not equivalent to inheritance rights

In judicial practice, many people often confuse guardianship with inheritance rights. In reality, the status of a guardian does not directly confer upon them the right to inherit the ward's estate; there is no direct correlation between guardianship status and inheritance rights. Whether a guardian can inherit an estate depends on whether they fall within the scope of statutory heirs or whether there is a will or a maintenance agreement by testamentary disposition.

Inheritance rights are determined by legal provisions and kinship relations. In the case of statutory inheritance, if the guardian belongs to the statutory inheritance sequence of the deceased, such as the spouse, children, parents, etc., they have the right to inherit the estate when statutory inheritance occurs. However, if the guardian does not belong to the statutory heirs or if the deceased has designated other individuals to inherit the property through a will, then the guardian will not have inheritance rights.

The role of a guardian carries more responsibility than just rights. The verdict in this case serves as a reminder to the public that guardians must strictly abide by their duties and protect the interests of the ward. Any abuse of guardianship duties or infringement upon the interests of the ward will be subject to legal sanctions, ensuring that every person in need of protection receives the care and protection they deserve.

[Relevant Laws]

Civil Code of the People's Republic of China

Article 28: For adults who lack or have limited civil capacity, the following individuals or entities with guardianship ability shall serve as guardians in the following order: (i) The spouse; (ii) Parents and children; (ii) Other close relatives; (iv) Other individuals or organizations willing to serve as guardians, but with the consent of the residents' committee, villagers' committee, or civil affairs department of the locality where the ward resides.

Article 31: In cases where there is a dispute over the determination of a guardian, the residents' committee, villagers' committee, or civil affairs department of the locality where the ward resides shall designate a guardian. If the relevant party objects to the designation, they may apply to the people's court for designation of a guardian; alternatively, the relevant party may directly apply to the people's court for designation. The residents' committee, villagers' committee, civil affairs department, or people's court shall respect the true wishes of the ward and designate a guardian from among those legally qualified to serve as a guardian, in accordance with the principle of best interests for the ward.

Before a guardian is designated in accordance with the first paragraph of this article, if the ward's personal rights, property rights, and other legitimate interests are unprotected, the residents' committee, villagers' committee, relevant legally designated organizations, or the civil affairs department at the ward's place of residence shall serve as temporary guardians. Once a guardian is designated, they shall not be changed without authorization; any unauthorized change shall not exempt the designated guardian from their responsibilities.

Article 34: A guardian's duties are to act on behalf of the ward in civil legal matters and to protect the ward's personal rights, property rights, as well as other legitimate rights and interests.

The rights arising from the guardian's performance of guardianship duties in accordance with the law are protected by law.

Should a guardian fail to fulfill their responsibilities or infringe upon the ward's lawful rights and interests, they shall bear legal liability.

In emergencies where the guardian is temporarily unable to perform their duties, resulting in the ward being unattended, the residents' committee, villagers' committee, or the civil affairs department of the ward's residence shall implement necessary temporary care measures.

Article 35: Guardians shall perform their guardianship duties in accordance with the principle of best interests for the ward. Guardians shall not dispose of the ward's property except for the purpose of safeguarding the ward's interests....

Article 36: In any of the following circumstances, the people's court shall, upon application by the relevant individual or organization, revoke the guardian's qualifications, implement necessary temporary guardianship measures, and appoint a new guardian in accordance with the law and in the ward's best interests: (i) Committing acts that seriously harm the physical and mental health of the ward; (ii) Neglecting to perform guardianship duties, or being unable to do so and refusing to delegate some or all of these duties to others, thereby leaving the ward in a state of distress; (iii) Committing other acts that seriously infringe upon the legitimate rights and interests of the ward.

The relevant individuals and organizations specified in this article include: Other individuals who have guardianship qualifications in accordance with the law, as well as residents' committees, villagers' committees, schools, medical institutions, women's federations, disabled persons' federations, organizations for the protection of minors, legally established organizations for the elderly, civil affairs departments, and so forth.

If the individuals and organizations other than civil affairs departments specified in the preceding paragraph fail to promptly apply to the people's court for the revocation of guardianship qualifications, the civil affairs department shall apply to the people's court.

(Case prepared by: Li Haiyou from Jing'an Court)