Request for the Appointment of a Custodian

A financially competent individual who has difficulty managing their finances due to illness or disability can request the district commissioner, as the chief guardian, to appoint a custodian. The condition for this is that the individual understands the significance of this arrangement.

A medical certificate must accompany the application, detailing the applicant's health status and confirming that the individual understands the significance of having a custodian.

It is possible to request a specific individual to be appointed as a custodian, otherwise, the custodian is chosen in consultation with the applicant.

Legal effects of the appointment of a custodian

When an individual has been appointed a custodian, they no longer have control over the assets managed by the custodian but can still dispose of them through a will.

A custodian can be entrusted with the management of real estate, aircraft, ships, vehicles, bank accounts, commercial papers, and shares in mutual funds.

If a custodian is entrusted with the management of real estate, an aircraft, a ship, or a vehicle, the appointment must be registered with the property.

End of custodianship

The individual who has been appointed a custodian can request that the custodian be relieved of their duties and regain control over their assets.

The appointment of a custodian shall be terminated if the client no longer understands the significance of the arrangement.

Fee

The fee for the appointment of a custodian and changes to their duties is ISK 5,000. The same fee applies when a custodian is relieved of their duties at the request of their client.

Responsibility of custodians

The custodian is responsible for notifying the district commissioner if the health of their client deteriorates or changes in such a way that they no longer understand the significance of having a custodian.

The custodian must submit an annual report to the district commissioner by March 1st, detailing the main decisions regarding the client's assets made in the past year.

Custodian's remuneration

If the custodian requests remuneration, it is paid by their client, but the district commissioner determines the amount of remuneration based on the nature and scope of the work.