In estate planning, a conservatorship is when an individual is appointed by the court to manage the financial or personal affairs of another person. Many people wrongly look down upon this type of arrangement because they do not understand the good that it can accomplish. It can be necessary to protect a person who is unable to handle their finances due to some form of impairment or vulnerability. Age, sickness, disability, or mental incapacity are a few reasons why a conservatorship may be a good option.
A local estate planning attorney could discuss the value of a conservatorship in order to protect assets and provide a safety net if the time comes when it is needed. If you are seeking this role or would like to discuss how one could be beneficial, contact a Phoenix conservatorship lawyer from Dayes Law Firm to schedule an initial consultation today.
Types of Conservatorships
In Arizona, a court may appoint a person to help handle financial affairs of an incapacitated or vulnerable person. The person appointed is referred to as the conservator and the person being protected is known as the ward or “protected person.” A Phoenix lawyer can speak with someone about what type of conservatorship appointment is appropriate.
Minor vs. Adult Conservatorships
A minor conservatorship can be created in situations where a child under the age of 18 inherits money or assets from a deceased relative or is awarded a sum of money from an injury settlement. A conservator can be appointed to help the minor manage the money until they reach adulthood. For example, if a 13-year-old receives a $300,000 settlement after suffering an injury in a car accident, the minor’s parents may petition the court to establish a conservatorship to manage the funds on the child’s behalf until the age of 18.
An adult conservatorship is typically used in situations where an adult has become incapacitated due to a disability or a severe bout of mental illness. The conservatorship protects the adult’s assets and makes sure they are used in the protected person’s best interest. An example of when a conservatorship is necessary would be if an adult develops dementia and is no longer able to manage bills and investment accounts.
Limited vs. General Conservatorships
Additionally, a conservatorship can be limited or general, and differ in the scope of authority the conservator has. In a limited conservatorship, the court may only grant certain powers to the conservator if the ward can still manage some things independently. A general conservatorship is broader in scope and gives the conservator power to manage all aspects of a ward’s finances. The court will consider evidence to determine what level of supervision and help is needed.
Responsibilities of Conservators
A conservator in Phoenix has several responsibilities to their designated ward. The broad responsibility a conservator accepts is to act in the best financial interests of a protected person. Additional responsibilities can include:
- Managing bank accounts, property, and investments
- Paying bills, medical expenses, and taxes
- Keeping detailed records of any financial transactions
- Submitting regular reports to the court
How Do Conservatorships Begin and End?
The process of establishing a conservatorship begins when someone files a petition with the probate court requesting appointment as a conservator. The Court then evaluates the evidence to determine whether a conservatorship is warranted and what kind of scope to authorize. The person filing a petition could include medical evidence of incapacity, testimony from family members, and more.
A conservatorship may have an end date, such as when a minor reaches the age of majority. Alternatively, a conservatorship may end when a conservator is removed or resigns, or if a protected person regains the ability to handle their financial affairs on their own. A Phoenix lawyer can offer guidance on when a conservatorship should naturally conclude.
Contact a Phoenix Conservatorship Attorney Today
Establishing a conservatorship can be an important legal task when there is someone who may not be able to handle their finances and personal choices for one reason or another. A Phoenix conservatorship lawyer could explain your options and the ways that this type of legal arrangement could help you. At Dayes Law Firm, we are committed to providing excellent service to each client. Contact our team to speak with a member of our team now.
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