When a Conservatorship Is Needed
If someone becomes incapacitated without a financial power of attorney or living trust, family must petition the court. The court then decides who will manage that person's finances. Ongoing court supervision and reporting are required.
The Problems With Conservatorship
- Expensive: Attorney fees, court costs, and annual accounting fees add up
- Time-consuming: The petition process can take weeks or months
- Public: All filings are public record
- Restrictive: The conservator must get court approval for major financial decisions
- Ongoing oversight: Annual reports and accountings are required
How to Avoid It
A durable financial power of attorney lets your chosen agent manage your finances if you become incapacitated. A funded living trust lets your successor trustee manage trust assets. Together, they remove the need for a court-appointed conservator in most cases.