(1) A guardian stands in a fiduciary relation to his ward, and, save as provided by the will or other instrument, if any, by which he was appointed, or by this Act, he must not make any profit out of his office.
(2) The fiduciary relation of a guardian to his ward extends to and affects purchases by the guardian of the property of the ward, and by the ward of the property of the guardian, immediately or soon after the ward has ceased to be a minor, and generally all transactions between them while the influence of the guardian still lasts or has only recently ceased.
Legal Commentary & Landmark Judgments: Section 20
Section 20 of the Guardians and Wards Act, 1890 defines the fiduciary relation of a guardian to a ward, prohibiting secret profits.
The section incorporates the rigorous standards of trust law into guardianship administration.
Section 20 imposes strict trustee liability upon guardians. Any purchase of the ward's property by the guardian—directly or through benamidars—is inherently tainted and voidable. Even after the minor attains majority, any release or property settlement executed in favor of the guardian is scrutinized by courts under the presumption of undue influence.