Conservatorship Administration

Conservatorship Administration is the process of accounting for the assets being managed by the Conservator in accordance with the Court's order.  Conservators have specific responsibilities and requirements that they must abide by when managing an incapacitated person’s finances.  Failure to live up to these standards can result in the Conservator being held liable for a breach of their fiduciary duty. 

Specifically, our firm can assist the conservator with issues regarding:

• filing the Inventory and Accountings with the Commissioner of Accounts;
• the standard of care required for managing an incapacitated person’s finances;
• investing the assets under their control in the required manner;
• interpreting the Court Order naming them the Conservator to determine what they may and may not do;
• terminating the Conservatorship in accordance with the law and the Court Order.

Your First Steps

Although, as we said, Conservatorships can be tailored in a number of ways, the following are some common steps that are required in most Conservatorships.  Whether you need to go through each step depends on the Court Order.

Qualification Appointment: The Court Hearing and the Court Order will be handled by your attorney as part of the Conservatorship proceeding.  Following the Court hearing at which you are named and following your receipt of the signed Court order, you will need to qualify as Conservator.  The Court Order directs the Clerk of the Circuit Court to formally appoint you as the Conservator.  This means a trip to the Courthouse.  It may be done at the same time as the Conservatorship hearing, but is not always done at the same time.  The Clerk will swear you in, confirm bonding, and provide you with a packet of information and several "Certificates of Qualification".  Until you have the Certificates of Qualification, you have no actual authority. 

Open a Conservatorship account: Following your receipt of the Certificate of Qualification, your next step should be to go to a bank and open a Conservatorship account.  This account typically will be titled to: John Smith, as Conservator for Mary Smith.  It does not belong outright to John, but belongs to John for the benefit of Mary.  The account must either return the physical checks that you write, or provide a copy (front and back) of every check drawn on the account.  The account should be interest bearing.  If substantial funds will be held by the Conservatorship, you may consider two or three accounts; a checking account (for immediate needs); a savings or money market account (for mid-term financial needs); and an investment account (for long term financial investments). 

If you retain us to help with the Conservatorship filings, we will have you order duplicate statements be delivered to our office. 

Take control of the assets: Once you have the Conservator account opened, your next responsibility is to take control of the incapacitated person's assets, and transfer them into the Conservatorship account(s).  This means you will go to the bank where the incapacitated person's finances are held, and using the Certificate of Qualification you will withdraw the funds from the old accounts (after making sure all checks have cleared).  Deposit the money you receive into the Conservatorship account.  You will end up closing these accounts after all checks have cleared, automatic deposits and automatic withdrawals have been redirected. You will normally redirect the income to the Conservatorship account.  KEEP ALL RECORDS showing the balances of all accounts on the date you qualified, and all transactions on or after your date of qualification.  You will have to account, to the penny, for everything. 

Pay the bills: You will then start paying the expenses of the incapacitated from the Conservator account. 

Inventory: Four months following your date of qualification, you must file an Inventory with the Commissioner of Accounts showing all finances as of your date of qualification. 

Accounting: six months following your date of qualification, you must file an Accounting showing every penny in, and every penny out, with receipts, from the first four months of your Conservatorship.  Subsequent accountings will be due annually. 

How can we help?

We can help in many ways; the extent of our involvement is your choice. 

Consultation to get you started right: You can have a consultation with an experienced conservator administration attorney.  The first step is always a review of the Court Order.  Each Conservator is appointed by the Court, and the Court Order will delineate the duties and authorities the Conservator is granted, as well as any restrictions placed on the Conservator.  The first rule of being a good Conservator is acting in accordance with the Court's Order.  Our attorney will review the Court order and advise you on the steps you need to take to remain within the bounds of the law. 

Represent the Fiduciary: We can be retained to represent the Conservator in making the qualification appointment and can accompany you to the appointment and complete the paperwork for you; we can complete the Inventory and Accountings based on the information you provide, as well as being available to answer questions. 

Please see the section titled "What to expect at your Conservatorship Administration appointment" to get an idea of what to bring to your appointment, and what to expect.