Investment
Strategies &
Risk Management
Services
Conservatorship Services
A "conservator of the estate" is appointed by the probate court
after legal counsel files the appropriate petition. There are a number
of situations that can result in the final decision to appoint a conservator,
such as:
A minor inheriting significant assets. A small child whose parents die in a common accident, for instance, cannot manage assets he or she has inherited, or carry on day-to-day financial matters. In this case, a legally appointed conservator, under close supervision by the court, is responsible for ongoing financial management.
A child receiving proceeds resulting from a personal injury lawsuit or the wrongful death of a parent or other family member. In this case, appointment of a conservator occurs once a settlement has been reached.
In situations involving a minor, the conservator is responsible for the financial management of the estate until the child reaches legal age. A conservator also can be appointed in the case of an adult who is adjudged physically or emotionally unable to handle financial affairs. In this instance, the term of the conservatorship can last for many years - in some cases until the death of the individual under care.
The Role of A Conservator
A conservator assumes a number of important responsibilities. Prompt collection and careful investment of assets belonging to the estate must be carried out in accordance with rules contained in the probate laws of the state. The conservator’s responsibilities may include:
Prudent management of estate assets, thus ensuring that the financial interests of the individual are served. In fact, if the conservator fails to keep a sufficient amount of estate assets invested at all times, he or she may be liable for an amount equal to the interest these funds would have earned.
Preparation and filing of annual state and federal income tax returns. In addition, certain reporting requirements to the probate court must be observed.
Periodic inventories and accountings that are required by law and submitted to the probate court for review.