Much like a guardianship provides a guardian with the authority to manage the lifestyle affairs of a person subject to guardianship, a conservatorship provides an individual (the conservator) with the right to manage the financial affairs and assets of the person for which conservatorship is established.
When is a Conservatorship Necessary?
Conservatorships are generally necessary in two instances:
- When a special needs individual reaches the age of 18, and
- When an adult sustains a severe medical event, leaving them unable to manage their affairs.
Can a Conservatorship Be Avoided?
Yes. As with guardianships, if an adult creates a Power of Attorney that provides another person with the authority to act on their behalf if they become severely injured and cannot act for themselves, the Power of Attorney will become effective if such an event occurs. In this case, a court-ordered conservatorship will not be necessary.
What are the Advantages of a Power of Attorney Over Conservatorship?
The advantages of a Power of Attorney over a conservatorship are basically the same as those associated with guardianship, namely:
- The authority in the person to whom the power of attorney is granted arises automatically upon the occurrence of the medical event – a court hearing an appointment are not necessary.
- No court reporting is required; thus privacy can be protected.
- Because no court proceedings or reports are required, there are significant time and monetary savings.
Can the Same Person Manage the Financial and Personal Affairs Through a Power of Attorney?
Yes. You can appoint for whoever you want to manage both your financial and personal affairs through a Power of Attorney, which may be one person or different individuals, so long as the person meets the statutory requirements to fulfill such roles.
Creating a Power of Attorney is Simple, and it can Eliminate Huge Financial Burdens if an Adult Becomes Incapacitated.
During estate planning, we work with clients to create Powers of Attorney that will become effective if an adult sustains a catastrophic event and cannot make decisions about their personal affairs.
If you need to set up a conservatorship for a special needs individual or an adult who has already sustained a catastrophic event, please call our firm.