Title Transfers Automatically to the Conservator
One of the most important practical effects of a conservatorship appointment is what happens to the protected person's property. Under this statute, the conservator automatically receives title, as a trustee, to all of the protected person's assets. This includes property the protected person currently owns and property they acquire later.
The appointment of a conservator vests in the conservator title as trustee to all property or to the part specified in the order of the protected person, presently held or thereafter acquired, including title to any property previously held for the protected person by custodians or attorneys in fact.
A.R.S. § 14-5420(A)If the court limits the conservatorship to only certain assets, the result is a "limited conservatorship." Otherwise, the conservator holds title to everything. Property that was previously managed by a power of attorney agent or custodian also transfers to the conservator.
Protection Against Transfer Penalties
A common concern with any change in property title is whether it triggers penalties. Some insurance policies, pension plans, and contracts include provisions that penalize or restrict transfers. This statute addresses that concern directly.
The appointment of a conservator is not a transfer or alienation within the meaning of general provisions of any federal or state statute or rule, regulation, insurance policy, pension plan, contract, will or trust instrument, imposing restrictions upon or penalties for transfer or alienation by the protected person.
A.R.S. § 14-5420(B)The protected person's interest in property held by the conservator cannot be transferred or assigned by the protected person, and it is shielded from levy, garnishment, or similar processes except by court order in the protective proceeding itself. This framework protects the estate from both outside creditors and unauthorized transfers while the conservatorship is active.
