A Built-In Check on Runaway Costs
Court proceedings can get expensive. Guardianship and conservatorship cases are no exception. A.R.S. 14-1104 puts a clear duty on every professional involved: manage costs prudently and preserve the assets for the person who actually needs them. This applies whether the court is appointing a guardian or reviewing an annual account of spending.
The fiduciary must prudently manage costs, preserve the assets of the ward or protected person for the benefit of the ward or protected person and protect against incurring any costs that exceed probable benefits to the ward, protected person, decedent's estate or trust, except as otherwise directed by a governing instrument or court order.
A.R.S. § 14-1104(1)This applies to guardians, conservators, personal representatives, trustees, and their attorneys. Everyone involved has a responsibility to keep costs reasonable. An incapacitated person cannot advocate for themselves, so the law builds in this protection on their behalf.
Duties for Attorneys and Guardians Ad Litem
The statute goes further than most people expect. It requires court-appointed attorneys and guardians ad litem appointed by the court to act in the best interest of the ward or protected person. They must avoid excessive or unproductive activities and compare the cost of any action against the likely benefit.
A guardian ad litem, fiduciary, fiduciary's attorney and attorney for the ward or protected person have a duty to: (a) Act in the best interest of the ward or protected person. (b) Avoid engaging in excessive or unproductive activities. (c) Affirmatively assess the financial cost of pursuing any action compared to the reasonably expected benefit to the ward or protected person.
A.R.S. § 14-1104(2)Market rates also matter. The statute directs courts to consider market rates for goods and services when appointing or substituting fiduciaries and attorneys. This keeps the process grounded in practical economics rather than allowing fees to escalate unchecked.
Any interested party can raise concerns about costs with the court. If a family member believes fees are excessive, they can present evidence showing that the costs are out of line with the benefit to the ward or protected person.
For families with a loved one in a conservatorship, this statute is a safeguard. It means that personal representatives, trustees, and other fiduciaries cannot spend estate or trust assets freely. Every dollar spent must be justified by the benefit it provides.