What Is A Conservatorship?
A Conservatorship is established by the courts when a person is in need of a representative to act on their behalf for the purpose of protecting their financial well-being. Essentially, Conservators become in charge of a protected person’s assets. This includes managing finances, paying bills and making investment decisions.
With proper estate planning, the appointment of a conservator can often be avoided. Conservatorships can usually be avoided when a proper Financial Power of Attorney is executed. Unfortunately, by the time most people are in need of a conservatorship, it’s too late as they no longer have the capacity to sign a Financial Power of Attorney.
The law has specific requirements for becoming and serving as a conservator when your relatives are in need. You want to make sure you discuss with a lawyer the process of becoming a conservator and the onling requirements while serving as a conservator.
In most circumstances, the legal process of becoming a conservator and managing assets is not the hard part. Family members often have strong disagreement with who should become the conservator of a loved one. Fights among siblings regarding a parent’s finances can be devastating. Proper estate planning can avoid these disputes!