The Scope of the Court's Authority
Arizona gives the court significant power over a protected person's finances, but those powers are always exercised for the benefit of the protected person and their dependents. The scope of authority depends on whether the protected person is a minor or an adult.
After a hearing and upon determining that a basis for an appointment or any other protective order exists with respect to a person for reasons other than minority, the court has, for the benefit of the protected person and members of that person's household, all the powers over his estate and affairs which the protected person could exercise if present and not under disability, except the power to make a will or to make gifts other than those authorized by this section.
A.R.S. § 14-5408(A)(3)For adults, the court steps into the shoes of the protected person for nearly all financial matters. There are two important exceptions: the court cannot make a will on behalf of the protected person, and it cannot make gifts unless specifically authorized under the statute's gift provisions.
Court-Authorized Gifts and Encouraging Independence
The court may authorize a conservator to make gifts from the protected person's estate, but only after considering several factors. These include the protected person's prior estate plan, their history of giving, potential tax savings, the size of the estate, income and expenses, and the likelihood the person would have made the gift themselves.
One provision that often gets overlooked is the court's ability to promote self-reliance. The statute allows the court to let the protected person manage some of their own money without the conservator's involvement. This might include maintaining a personal bank account for everyday expenses.
To encourage the self-reliance and independence of a protected person, the court may grant the protected person the ability to handle part of the protected person's money or other property without the consent or supervision of the conservator.
A.R.S. § 14-5408(C)An important safeguard: a court order establishing conservatorship does not affect the protected person's legal capacity in other areas. The order addresses financial management, not the person's broader rights.
