Guardianships and Conservatorships without a Power of Attorney (POA)

If you fail to plan ahead by signing a Power of Attorney or making arrangements for your possible incapacity through the use of an asset management trust, by default, you may end up with a conservatorship (a guardianship in some states). Most states have a court monitored process that can be used to appoint a conservator to manage your finances if you become mentally incompetent. Certain steps must be followed to establish the conservatorship which can involve significant expenses.

After a conservator has been appointed, your assets are managed by the conservator under arrangements similar to probate estate proceedings. These arrangements continue until your death, or until you are otherwise able to show that you can manage your own financial affairs.

Most people would prefer to choose the person who will manage their affairs, versus leaving it up to the court to appoint a guardian or conservator.  Creating a Power of Attorney in advance is a good option to avoid this situation.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.