The use of legal guardianship for the elderly is increasing due to the increase in numbers of vulnerable elders and the subsequent dynamic effect on their families and communities. 2. Although the guardianship system provides a necessary service, the effects on "wards of the court" can lead to further physical and psychological deterioration due to their loss of all major decision making powers. 3. There is an assumption that the closest living relative would be the best guardian. There also is an assumption that elders who are confused or disoriented in dealing with money or business affairs require full guardianship. The validity of these assumptions, without assessment and intervention of geriatric specialists, is questionable.