Guardianship Rights and Responsibilities Act of 1997

Guardianship Rights and Responsibilities Act of 1997 - Amends title XIX (Medicaid) of the Social Security Act to reduce the Federal share of Medicaid payments available to States which fail to adopt the rights, standards, and duties in this Act concerning guardianship. Requires that an individual subject to a guardianship petition: (1) be provided with notice of all pending guardianship proceedings, rights afforded during a proceeding, and the possible consequences of a determination of incapacity; and (2) have the right to counsel, to have the question of incapacity heard by a jury, and to file an appeal against a determination of incapacity and a guardianship order. Requires that determinations of incapacity be made only under certain circumstances. Sets forth requirements of training for court personnel in guardianship hearings. Requires that: (1) personal preferences of wards in the selection of guardians be taken into account; and (2) a guardianship be imposed on a ward in the least restrictive manner commensurate with the ward's functional limitations. Sets forth requirements for the appointment of a person as a guardian. Requires a guardian to keep the court which issued the guardianship order informed of the ward's affairs and whereabouts and use of the ward's funds only for the administration of the guardianship and the ward's benefit. Provides that a court in a State into which a ward moves shall be notified of the existence of a guardianship and receive information on, and assume jurisdiction over, such guardianship. Requires annual court reviews of guardianship orders. Requires private professional guardians to meet certain certification requirements. Directs the Secretary of Health and Human Services to award demonstration grants to eligible States for guardianship advocate programs. Authorizes appropriations.