Guardians for adults are appointed in a legal order; if the ward injures someone, the guardian must pay compensation

There are no direct costs. When disputes arise, parties must turn to the residents' committee, villagers' committee, civil affairs bureau, or court to resolve them.

Article 28 of the Civil Code states that adults lacking or having limited civil capacity must be guarded in this order: “(1) Spouse; (2) Parents and children; (3) Other close relatives; (4) Any other individual or organization willing to serve, provided they receive approval from the local residents' committee, villagers' committee, or civil affairs bureau.” Article 31 adds that when disputes arise over guardianship, the local residents' committee, villagers' committee, or civil affairs bureau appoints a guardian; parties may apply to court if they disagree or apply directly to court for an appointment, and the appointment must respect the ward’s true wishes and be made in their best interest. Until a guardian is appointed, the residents' committee, villagers' committee, or other legally designated organizations act as temporary guardians. Article 33 permits adults of full capacity to name their own guardian in writing while still of sound mind. Article 1188 stipulates that guardians must pay compensation when their ward causes harm; if they fulfilled their duties, the liability may be reduced. Compensation is paid first from the ward’s own assets, with any shortfall covered by the guardian. Article 1189 clarifies that even when guardians delegate duties, they remain liable; only when the delegatee is at fault does liability shift partially. This framework has been in effect nationwide since 1 January 2021.

中华人民共和国民法典（第二十八条、第三十一条、第三十三条、第一千一百八十八条、第一千一百八十九条）. https://flk.npc.gov.cn/detail?id=ff808081729d1efe01729d50b5c500bf

Article 33 specifically addresses voluntary guardianship. Drafting a written arrangement while still of sound mind can prevent most future disputes; see Section 17, Item 1 for guidance on drafting such documents. Regarding compensation, guardians remain liable even when the ward is placed under the care of relatives or institutions; only when those caretakers are at fault does liability shift partially. Purchasing guardian liability insurance is therefore advisable. Article 78 of the Mental Health Law also holds guardians accountable for any harm caused by neglect or failure to fulfill their duties.