What Is a Conservatorship? Pros, Cons & Alternatives

Conservatorship is a court-appointed legal status where someone manages the personal or financial affairs of an incapacitated person, an older adult with physical or mental limitations, or a minor^[0]

The main difference between conservatorship and guardianship is age. Guardianship typically applies to minor children; conservatorship generally applies to adults (though definitions vary among states). Also, conservatorship usually concerns finances, while guardianship usually concerns medical and personal care^[0]

Definitions of conservatorship vary among U.S. states and jurisdictions. In some states, guardianship is only for minor children and conservatorship is for adults.

“Conservator of the estate” typically refers to someone who manages an incapacitated person’s financial affairs, while “conservator of the person” refers to someone who manages personal and medical decisions. Conservatorship of a person is often called guardianship.

The main difference between conservatorship and adoption is that adoption generally severs legal ties with the biological family or former guardians and makes someone a permanent member of the applicant's family, with inheritance rights^[0]

A conservatorship typically only applies to adults, and a conservatee or their family can petition the court to change or remove a conservatorship.

» Learn more: What a next of kin means for estate planning

• A conservator's powers might apply to all of a person’s affairs or only to their financial decisions.

• A judge can appoint a conservator to manage someone’s finances and a guardian to manage their medical and other care or appoint the same person to perform both duties. 

• Conservators have responsibilities to the conservatee, typically to provide adequate food, clothing and shelter and ensure the conservatee’s well-being.

Financial conservatorship

Some states allow conservators for financial matters alone. This is often called “conservator of the estate” or “guardian of the estate.” The conservator may manage recurring tasks such as paying bills but typically must get court permission to supervise any major legal and financial decisions, such as purchasing property or investments.

• The conservator usually must provide the court with spending records on a regular basis. 

• This type of conservatorship might happen if a minor inherits a large amount of money.

» Another option: How to set up a trust and name a trustee

Personal conservatorship

A court order can establish a conservatorship for an adult who can’t care for their personal or medical needs independently, sometimes called “conservator of the person” or guardianship in some states.

• Typically, the court must verify any diagnosis before establishing a conservatorship.

• If someone is incapacitated or resistant to assistance such as medication, a nursing home or other facility, this type of conservatorship can legally get them the help they need.

• The conservator must file regular reports with the court documenting major decisions they made on behalf of the conservatee^[0]

  Family Caregiver Alliance. Conservatorship and Guardianship. Accessed Mar 20, 2024.

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» MORE: How doctors measure the ability to live independently

Powers of this kind of conservator may include, but are not limited to:

• Housing, including institutionalization.

• Medical care.

• Food.

• Clothing.

• Transportation.

• Education.

General vs. limited conservatorship

Conservatorships can be general (where the conservatee has very little decision-making power) or limited (which only permits the conservator to manage specific affairs). Personal and financial conservatorships can be limited or general.

General conservatorships are typically for elderly people and seriously impaired adults, while limited conservatorships usually work better for adults with developmental disabilities who do not need a general conservatorship’s higher degree of oversight.

In California, for example, a limited conservator may request up to seven powers on behalf of a conservatee^[0]

1. Fix a residence or dwelling (for example, if the conditions are unsafe).

2. Access confidential records.

3. Consent or denial of a marriage.

4. Form contracts.

5. Give or withhold medical consent.

6. Manage access to the conservatee’s contacts and relationships.

7. Make educational decisions.

These are the general steps to establish a conservatorship:

1. An interested party asks a judge (“petitions the court”) to appoint a conservator to oversee a person’s affairs. The petitioner must prove that the conservatee cannot make their own financial or personal decisions.

2. The court appoints an investigator to examine the situation and report to the court with an opinion on whether a conservatorship is warranted.

3. The court holds a hearing where everyone comes together to review the findings and other evidence. In most states, conservatorship and guardianship proceedings are on the public record.

4. If the judge determines that a conservatorship is warranted, the judge appoints the conservator and decides what the conservator can and cannot do on behalf of the conservatee.

5. The investigator regularly visits the conservatee to evaluate whether the conservatorship is still appropriate.

» MORE: Learn about advance directives

Conservatorship is an extreme measure that can remove significant rights from a person. Several alternatives might help protect you or someone you love during a vulnerable time without as many restrictions.

Financial alternatives to conservatorship

• A durable financial power of attorney (POA) allows someone else to handle your finances, ranging from daily expenses to investments, legal claims and estate planning. Unlike a standard power of attorney, a durable POA stays effective if you become incapacitated.

• A special needs trust is an estate planning tool designed to leave funds for a beneficiary with a disability, protect them against financial abuse and preserve their eligibility for government benefits.

• A revocable living trust allows you to appoint a trustee to manage your financial affairs if you become incapacitated, but you must be competent when establishing the trust.

Medical alternatives to conservatorship

• A durable medical power of attorney (POA), also called a health care proxy, allows someone else to advocate for your health care needs and make decisions about your medical treatments. Unlike a conservatorship, this doesn’t require a legal designation; typically, you fill out a form with your medical provider. 

If you’re looking into conservatorship as part of your estate planning, consult an estate planning attorney to help you navigate your state’s rules.