In the event of a person suffering from an incurable disease or involved in an accident and is unable to manage one’s own affairs, state law might require the person to have a conservator appointed by the court. The conservator is given the authority to make financial decisions and handle the injured/ incapacitated person’s financial affairs, subject to the supervision of the court.

Jurisdiction of the court in a conservatorship continues while the incapacity exists but ends at death. The conservator has to make periodic reports to the court and petition the court for additional authority under certain circumstances.

Generally, a conservatorship allows the conservator to be paid for his or her services. The conservator is also entitled to attorney fees to seek legal advice. In addition, the court will require a conservator to purchase a type of insurance policy known as a “surety bond” to protect the conservatorship estate. The costs and expenses of a conservatorship are paid from the property of the person.

An estate plan set the guidelines for managing one’s property beforehand so that, in the event of the person becoming unable to mange his/her property, the assets could be managed in accordance with the estate plan, thus averting a conservatorship thrust upon by the court. Estate planning consists of diverse mechanisms to deal with divergent situations. For instance: a durable power of attorney for property enables the person to authorize a person to act in his/her place and take care of the property the event of one’s incapacity. Similarly, a Trust or Family Limited Partnership is used to hold property and the trustees or partners manage the property held by either of these entities. Estate planning also provides for the appointment of a Power of Attorney for health care to make decisions regarding health care treatment when he/she is unable to provide informed consent.