Conservatorships and Guardianships
Similar to instances in which a person does not have health care directives or a living will, the courts can appoint a conservator to take care of one's financial affairs. If you become incapacitated before having signed a power of attorney, your loved ones will need to go before a judge to request that someone be appointed to help you. This person can be called a guardian or a conservator. If the court orders the appointment of someone in this role, that person will assume complete responsibility for making financial decisions.
It might seem counterintuitive to have a court-appointed guardian when perfectly able-bodied relatives are available. The problem with such physically fit people may be that while they are well-intended, they are nevertheless quarreling relations. Absent legal instructions for you, their fight will be resolved in the courts, which may have been your intention anyway. Maybe you are too afraid of the backlash that will be unleashed if you were to choose your daughter Jenny over her twin Jane and would just as soon have the decision taken out of your hands. Doesn't matter. In the end someone will have to assume control of your affairs.
Your conservator will be accountable to the court, and will be required to make periodic reports to ensure that he is not abusing your resources. Sometimes a conservator is required to post a bond, as a type of insurance protection against mismanagement.
Who fills the role of conservator?
Often the courts will appoint a family member, such as a spouse or adult child. At the outset of a conservatorship hearing, it must be proven that you do not have the mental capacity to handle your own affairs. Anyone, even the proposed conservatee, can object to the nominated conservator or the proceeding in general.
Your conservator would be compensated for his services from your assets. The conservator is responsible for making sure you get all benefits and income you are entitled to, but is not responsible for supporting you from his own assets.
A conservator's responsibilities can cease in a number of ways including your death. Or, if your assets become depleted, then there would no longer be a need for the conservator. Should your condition improve, the services of the conservator may no longer be needed. It is possible for an individual conservator to resign. In such a case, however, the conservatorship would not end. A new conservator would be appointed by the court.
