Having a family member or loved one that needs help with their finances is a difficult thing. A court can appoint a conservator to protect that person’s financial well-being. But what rights does the conservator have? This is important to know, whether you are a conservator or are making sure one is doing the job correctly. An experienced attorney can help you understand their rights and obligations.
The estate planning lawyers at Mark Harford Law work with you on your conservator needs. Whether it’s you or someone else, conservators need to understand their rights and duties when handling another person’s finances. We can help.
What Is a Conservator in Missouri?
A conservator is a person or institution appointed by the probate division of a Missouri circuit court. They help manage the financial affairs of a minor or an adult who has been legally determined to be disabled or incapacitated.
The individual under conservatorship is called the protectee or conservatee. This legal terms simply refers to the person protected by the conservator.
What Rights Does the Conservator Have?
Once they are appointed, a conservator has the following financial powers:
- Access and control Over Bank Accounts: Conservators can open, close, and manage financial accounts. This might include checking, savings, and investment accounts in the protectee’s name.
- Income Management: They receive and manage income sources such as Social Security, pensions, annuities, rental income, and wages.
- Bill Payment and Debt Management: Conservators are responsible for paying the protectee’s bills, managing debts, and avoiding financial penalties.
- Asset Protection and Investment: They may buy, sell, or invest assets. This can include real estate, stocks, and personal property. This management is subject to court approval.
- Tax Filing: Conservators must timely file federal and state tax returns, including any payment.
- Budgeting and financial planning: They create budgets and financial plans to ensure the protectee’s needs are met sustainably.
All financial decisions must be made in the protectee’s best interest and documented for court review.
What the Court Requires from the Conservator
Conservators are under strict observation by Missouri courts. Obligations that courts check on include, but are not limited to:
- Inventory of Assets: Within 30 days of appointment, the conservator must file a detailed inventory of the protectee’s assets.
- Annual Accounting: Conservators must submit yearly financial reports to the court, detailing income, expenses, and asset changes.
- Receipts and Records: All transactions must be documented with receipts, invoices, and bank statements.
- Court Approval for Major Transactions: Selling real estate, making large investments, or gifting assets typically requires prior court approval.
Failure to comply with these requirements can result in removal, fines, or legal liability.
The Limits of a Conservator’s Authority
While conservators have pretty broad financial powers, they cannot:
- Use the protectee’s funds for the conservator’s own benefit
- Make decisions outside the scope of financial management (such as medical care unless also appointed as guardian)
- Change the protectee’s estate plan or beneficiaries
- Transfer assets without court approval
Missouri law emphasizes the least restrictive alternative, meaning conservatorship should preserve as much autonomy as possible for the protectee.
Conservatorship vs. Durable Power of Attorney
A conservatorship is court-supervised and typically used when no valid power of attorney exists or when the existing agent is unable or unwilling to act. On the other hand, a durable power of attorney allows a person to appoint someone to manage finances without court involvement. Courts may consider less restrictive alternatives before granting conservatorship.
Ending or Modifying Conservatorship
A conservatorship may be terminated if:
- The protectee regains capacity
- The protectee dies
- A less restrictive alternative becomes viable
- The conservator resigns or is removed
What that happens, the court will appoint a successor or close the conservatorship after final accounting.
Get Help With Your Missouri Conservator Needs
Conservators are important people with an important job. They protect vulnerable people and their financial interests. This authority is significant, but it also comes with many requirements. These ethical duties and responsibilities must be respected and performed with full compliance.
Let the dedicated estate planning attorneys at Mark Harford Law help you with conservator issues. Contact us today for a consultation.