Can a guardian sell the child’s equity to save a struggling business?
No. Civil Code Art. 35 expressly forbids a guardian from disposing of the ward’s property except for the ward’s benefit. Even motivated by “saving the company to indirectly protect the child’s dividends,” it is hard to have recognized judicially—unless the transaction is clearly favorable to the child (e.g., a high-price cash-out), it can be voided and liability pursued.
