Conservatorship Administration

My brother was just declared incapacitated, and the Judge named me as his Conservator. What do I need to do?

Let's just take it step by step.

OUR FIRST APPOINTMENT

 If either Christina C. Balaban or Susan I. Jean did not represent you at Court with the Conservatorship, please bring copies of the following documents with you to our first appointment:

1. Your Certificate of Qualification, if you have already qualified.
2. Your best estimate of what your brother owns.
3. Real Estate Deeds, appraisals or real estate tax bills.
4. Statements for bank accounts or other financial assets owned solely or jointly by your brother showing their value as of your date of qualification.

 When we meet, I will discuss the steps necessary for proper administration of the Conservatorship. At the conclusion of our appointment, I will ask whether you want to retain me to assist further. I will assist as much or as little as you prefer.

QUALIFYING AT COURT

 The Judge directs the Clerk of Court to qualify you as your brother's Conservator. The Clerk actually qualifies you. So, we will help you by making an appointment for you to qualify.

 Bonding: For most people who are managing money for another person, the Court requires that they have a surety bond. Essentially, a surety bond is an insurance policy. If you mismanage the money entrusted to you, the bond company will repay the Conservatorship (and then come find you for reimbursement). Bond companies are careful about who they will insure. Certain indicators make it difficult for you to be bonded, and other indicators make it virtually impossible to be bonded.
 Virtually impossible: recent bankruptcy, felony conviction or bad credit.
 Difficult: If you have fewer assets than those you would be administering, or any bankruptcy in your record.

Fortunately, your brother's assets will pay for the insurance premium.

 Qualifying: We will arrange for the bond company representative to join you at the courthouse for the qualification appointment. We will have several forms for you to take to the Courthouse (or, if you prefer, we will arrange for the conservatorship administration paralegal to accompany you to the Courthouse).

HANDLING THE MONEY

 Open a Conservatorship account(s): After you have qualified, the next step is to open one or more bank accounts titled as follows: "Your name, Conservator for Brother". It is important that the account be interest-bearing, and that the bank either return your cancelled checks, or that the bank statement include a copy of the cancelled checks.

 If you are in charge of a significant amount of money, you may wish to have both a checking account and an investment account.

 Collecting the Funds: After you have the Conservatorship account open, it is your job to collect your brother's money, and deposit the money into the Conservatorship account. This includes canceling magazine subscriptions (if your brother cannot read the magazine!) and depositing the refund in the Conservatorship account, canceling the utilities at the house and depositing any refund into the Conservatorship account. You get the idea. Keep all of the records, since we will need to explain where the money came from.

 Investing the Money of the Conservatorship: You do not have the right to invest your brother's money the same way you invest your own. You do not have the right to decide that your brother would have invested in a certain way. You must invest prudently. What does this mean?

 If you invest in certain assets, you do not have to worry about whether the investments do well, since the following are considered "prudent investments":

 While legally you are not restricted to these investments, in most cases it is wise to stick to these investments

If you want to invest in anything else, you run a risk that the investment will not do well. Although not likely, you could be sued for poor investments.

IMPORTANT: DO NOT INVEST THE CONSERVATORSHIP FUNDS IN YOUR OWN BUSINESS! I have never seen anything good come from this.

Spending Conservatorship Funds: The Conservatorship funds must be spent only for your brother; not for you, not for your son who really, really, really needs help and you are sure your brother would have helped.

THE REPORTS

 Virginia's system normally requires that your actions be supervised by a person called a "Commissioner of Accounts". When you meet with the Clerk and qualify, they will identify which Commissioner of Accounts will supervise your actions. The Commissioner of Accounts requires two kinds of reporting

The Inventory: Within four months of your date of qualification, you must file an Inventory with your Commissioner of Accounts. This lists the assets that your brother owned, on the date that you qualified. It establishes a starting point for the Conservatorship.