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The guardian is claiming because the family is dysfunctional they do not deserve to have a gathering after the funeral. She also already broke the contract made
originally by the eldest daughter with the funeral home. The second son has
just died. Now there are only 2 remaining daughters. The Mother has a large
family who loves her and would like to honor her. This guardian is out of line, I believe by making a judgement against a family she doesn't even know.

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You don't need the guardian's permission to have a memorial service for mom. If she has a large family who wants to honor her, make your plans...right after the funeral, days or weeks after the funeral, whatever is convenient for the most people.
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Doesn't the guardian's responsibility end upon the death of their ward? I can't see how she would have any say in whether there is a funeral or not or how your Mother's estate is handled unless she is also executor of her Will.
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I also think the guardian is out of line, unless there's something in the order of appointment that allows her oversight over financial issues and she's approaching the funeral on that level. However, it's not her place to conclude the family is dysfunctional.

I think you should follow what your parents wanted but think you should also try to get the guardian to state her position in writing, then forward it to the judge who appointed her and state that you feel she's overstepping her boundaries. If she's billing for the time she's objecting to the funeral, there's no reason why your family, or whoever guardianship was appointed for, should pay for that kind of unwarranted intervention.

However, Willie raises a good point. On whose behalf does this guardian act? Was it your brother? If so, I agree that the guardian shouldn't have any more rights or obligations.
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Did you hear this information directly from the guardian, or are you being told this by a third party, like a sibling ? Something about this sounds fishy.
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So sorry, I am confused about the meaning of "breaking of the contract" with the funeral home; the timing of the death(s), funerals; the guardian's role in any planning after the death of the ward. I agree with MaggieMarshall that the family can plan whatever tribute they like without say from the guardian, unless of course we are talking about using the ward's money to have a big party…and with Babalou that this sounds fishy. Many unclear details here. The one clear detail is that the guardian is out of line if she in fact said the "family was too dysfunctional to deserve a gathering after the funeral"-----that's not her judgment to make.
Sorry to be so blunt, but who's interests are being served by the different sides of this disagreement?
Prayers and best wishes!
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Guardianship and POA end at death. The Executor of the Will then arranges the funeral. Nobody else. So who is the Executor?
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