The Fiduciary Standard That Applies
When a court appoints a conservator, it is placing someone in a position of significant responsibility. This statute makes the expectation clear: a conservator must act as a fiduciary, following the same standard of care that applies to trustees under Arizona law.
In exercising powers, a conservator is to act as a fiduciary and shall observe the standard of care applicable to trustees as described by sections 14-10804 and 14-10806.
A.R.S. § 14-5417The referenced trustee standards (A.R.S. 14-10804 and 14-10806) require that a conservator act with reasonable care, skill, and caution. The conservator must put the protected person's interests first, avoid self-dealing, and manage assets prudently. This is not a casual obligation. Courts take it seriously, and a conservator who falls short can be held personally liable for losses.
What This Means in Practice
A conservator is not simply someone managing another person's bank account. The role carries legal duties that mirror what a professional trustee would be expected to do. That includes making informed decisions, diversifying investments when appropriate, keeping personal funds separate, and documenting every transaction.
For families considering conservatorship for a loved one, understanding this standard is important. The person appointed will be accountable to the court and must treat every financial decision as if they are managing someone else's life savings, because they are. Proper estate planning, including a durable financial power of attorney and a funded living trust, can often avoid the need for a court-appointed conservator altogether.
