You may have heard about conservatorships from Hollywood news stories about Britney Spears or Amanda Bynes. But not-so-famous people may also need a conservator.
Conservators can be appointed by a court for adults who are physically or mentally unable to manage their affairs, particularly for retirees.
If you want to prepare for your retirement, here’s what you need to know about a conservatorship.
Eliminate your late tax debt
Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.
Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
Fill out this form to get started
What is a conservator?
![senior woman consulting finance advisor](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/senior-woman-consulting-finance-advisor.jpeg)
A conservator is the person appointed by the court to manage the affairs of someone unable to manage their finances or health. A conservator, or adult guardian, is typically a family member or close friend, but ultimately the final decision is left up to the judge.
By planning ahead and giving someone durable powers of attorney for health care and finances, you will not need the court to make this decision.
How does someone become a conservator?
![nurse holding senior man hand](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/nurse-holding-senior-man-hand.jpeg)
A case will need to be presented before a judge in a legal hearing. There will need to be adequate proof provided that shows the potential conservatee is not fit to manage their own affairs in order for the conservatorship to be agreed upon.
The judge will also appoint the conservator. That’s usually a spouse or blood relative, but could also be a professional, if there are no other suitable options.
Are there different types of conservatorship?
![senior woman on wheelchair with volunteer](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/senior-woman-posing-with-female-volunteer.jpeg)
There are different types of conservatorship, depending on the level of needs the conservatee has. You can have a limited conservatorship, where the conservator is limited to only a specific area of management, like financial or medical decisions.
You can also have a full conservatorship, where the individual has all decision-making powers in the case of someone who is unable to choose for themselves, like an elderly parent with dementia or Alzheimer’s disease.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Do conservators get paid?
![senior woman reviewing documents with daughter](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/senior-woman-reviewing-documents-with-daughter.jpeg)
It depends. Conservators are reimbursed for their expenses through the conservatees’ assets. Typically, only a professional conservator would be paid, but a relative can request “fair” compensation through the court as well.
What can a conservator do?
![senior friends having lunch at restaurant](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/senior-friends-having-lunch-at-restaurant.jpeg)
Unless otherwise limited or stated by the court, a conservator has the ability to make the majority of decisions for the conservatee’s well-being, including:
- Medical care
- Living arrangements
- Nutrition
- Transportation
- Recreation
- Education
- Financial decisions
What’s the difference between a conservatorship and a guardianship?
![woman reading book to senior woman](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/woman-reading-book-to-senior-woman.jpeg)
Both a conservator and guardian act on the behalf of someone else. In some states, they are essentially the same. However, there is a slight distinction between the two.
A guardianship has control of day-to-day decisions for a minor until they come of age. A conservatorship is for an incapacitated adult, can be limited in power, and is in place until the court lifts the order.
What’s the difference between a conservatorship and power of attorney?
![senior friends walking disabled friend](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/senior-friends-helping-disabled-friend.jpeg)
A power of attorney is chosen by an individual to act legally on their behalf. It can be given and rescinded freely at any time. The scope can be set by the appointing individual.
A conservator is chosen by the court after a hearing is held and remains in place until the court deems it no longer necessary. The judge will decide how inclusive the conservatorship will need to be.
Are there any checks on the conservator to prevent abuse?
![woman taking care of senior woman](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/woman-taking-care-of-senior-woman.jpeg)
Yes, conservators are responsible for reporting to the court. Essentially, the conservator is supposed to be a neutral party acting on behalf of the person. A benefit of a conservatorship is that the court system has rules and reports set up to make sure the person’s affairs are being adequately managed.
The specific laws for the required duties of a conservator vary state to state. For example, in Utah, an appointed conservator is required to report financial transactions made on the conservatee’s behalf once per year to the court.
How do you end a conservatorship?
![doctor prescribing medications to senior patient](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/doctor-prescribing-medications-to-senior-patient.jpeg)
Because a conservator is appointed by the court, it is the court that must dismiss them as well — even if both parties agree the conservatorship is no longer needed. If both parties are not in agreement, there will be a hearing to determine the outcome. This may include testimony from all parties and potential witness statements from caretakers or physicians.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Are there any alternatives to conservatorship?
![nurse reading book to senior woman](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/nurse-reading-book-to-senior-woman.jpeg)
Power of attorney and a well-established trust can be a good alternative to conservatorship. This allows you to choose who will make decisions for you when you are no longer able to, rather than leaving that up for the legal system to decide.
If the power of attorney is not thorough or doesn’t include certain powers like making medical decisions, your loved ones may still end up seeking a conservatorship if you become incapacitated.
Bottom line
![happy nurse sitting with male retiree](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/21/happy-nurse-sitting-with-male-retiree.jpeg)
It can be intimidating to think about choosing a person to make decisions on your behalf, but doing so can prevent your family and loved ones from needing to seek the court’s assistance to help care for you.
While you are working hard to build wealth, you don’t want to lose control of it if you become incapacitated. Working with an estate attorney, you may be able to come up with less-restrictive solutions to help you manage your health and finances as you age.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.