If you become unable to manage your own money and you have not signed a financial power of attorney, your family cannot simply step in. They have no legal right to access your bank accounts, pay your bills, manage your investments, or handle your property. The only option is to ask the court to appoint someone for you. This process is called a conservatorship. It is one of the most costly and limiting outcomes in estate planning.
What a Conservatorship Looks Like in Arizona
In Arizona, conservatorship is governed by A.R.S. Title 14, Chapter 5. A family member (or sometimes a paid person in charge) files a petition with the Superior Court. They ask to be named as your conservator. The court sets a hearing. In most cases, a lawyer or investigator is assigned to protect your interests.
The process often takes several weeks to several months. It depends on the county and whether anyone objects. During that time, your bills may go unpaid. Your accounts may be frozen. Your family has no legal way to help.
Once named, the conservator must:
- Post a bond (a type of insurance) in many cases, which costs money
- File a list of all your assets with the court
- Submit yearly reports showing every dollar received and spent
- Get court approval for major money choices, like selling property or making large purchases
- Follow strict rules about how your money can be invested and spent
The court watches over the conservatorship for as long as you are unable to act. That could be years. Every report, filing, and petition costs money in legal and court fees.
How Much a Conservatorship Costs
A conservatorship is one of the most costly outcomes in estate planning. Legal fees for the first petition usually run $3,000 to $7,000 or more. This depends on the case and whether anyone fights the appointment. Ongoing legal and accounting costs can add $2,000 to $5,000 per year. Bond premiums add even more.
If family members disagree about who should serve, costs can climb fast into tens of thousands of dollars. By contrast, a financial power of attorney costs a small fraction of that. It gives your chosen agent the right to act without any court involvement.
Loss of Control and Privacy
With a power of attorney, you choose who handles your money. You decide what power they have. You can make it as broad or as narrow as you need. And it all stays private.
With a conservatorship, the court decides. A judge who does not know you, your family, or your wishes picks the person in charge of your money. Even if a family member is chosen, they work under court rules that would not exist under a power of attorney. The entire case becomes part of the public record. Anyone can look up the details of your finances and the court's orders.
What Happens on the Medical Side
Being unable to act does not just affect your money. If you also lack a healthcare power of attorney, your family may need to petition for a guardianship to make medical choices for you. Guardianship is a separate court process with its own costs and rules. Without these papers, your family may face two court cases at once. One for your money and one for your medical care, all while you sit in a hospital bed unable to help.
Having both a financial power of attorney and a healthcare power of attorney in place prevents both of these situations. To learn how these documents work together, see our FAQ on the difference between a Healthcare Power of Attorney and a Living Will.
What You Can Do Now
The best time to set up a power of attorney is while you are healthy and able to make your own choices. Arizona law says you must be of sound mind when you sign. Once you lose that ability, it's too late.
If you already have a power of attorney, review it often. Make sure your named agent is still the right person. Check that backup agents are listed. Confirm the document reflects your current wishes. If your power of attorney was drafted in another state, have an Arizona lawyer review it to confirm it meets the rules under A.R.S. Title 14.
At RJP Estate Planning, we help Arizona families put these protections in place before a crisis. A financial power of attorney is one of the most affordable and useful papers in your estate plan. The results of not having one are some of the most costly. For a wider look at what can go wrong without proper planning, read our guide on what happens without an estate plan in Arizona.