Title Transfers to the Conservator
When a conservator takes office, the law gives them title as a trustee. This covers all of the protected person's assets, including property they gain 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 scope to certain assets, it creates a "limited conservatorship." Otherwise, the conservator holds title to everything. Property once managed by a power of attorney agent also passes to the conservator.
No Transfer Penalties
Some insurance policies, pension plans, and contracts restrict transfers. This statute says the appointment does not count as a transfer. As a result, it does not trigger penalties or restrictions.
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 cannot transfer or assign their interest in property the conservator holds. The property is also shielded from levy and garnishment. Only a court order in the protective case can allow these actions.
For families, this means appointing a conservator will not void an insurance policy or cause a retirement plan penalty. The court still must approve major transactions. The appointment itself is a protective step, not a property transfer.