What is the difference between a Conservatorship and a Power of Attorney?
No one wants to think about what happens when they can no longer manage their own
financial affairs or take care of themselves on a daily basis. But the time to think of those
things is before they are needed. Family members should be aware of the options available
and their benefits and impacts. Powers of Attorney and Conservatorships are the most
common.
Power of Attorney
Powers of Attorney are established by a person who thinks ahead for when they may need
help making decisions, either for a limited time or for a specific reason. The appointing
person, while still competent, can supervise and manage the appointed POA, can remove
that POA and appoint another, or terminate the POA altogether. One problem with only
having a POA is when the individual appointing that POA no longer can supervise that POA.
That individual can no longer make decisions to remove or amend the POA and with no
supervision, the POA may not always act in the best interest, especially when money is
involved. While there are steps in place to oversee the Power of Attorney through the court,
the process can be time-consuming, expensive, and on many occasions destructive to the
family relationship.
Conservatorship
Conservatorships come in two forms: voluntary and involuntary. In the first, the court acts
on a request of the individual to appoint a personally chosen Conservator to manage the
financial, personal, and/or medical matters. The court must find the applicant to be
competent and aware of this decision and will oversee the chosen Conservator’s actions.
The main difference between a Voluntary Conservator and a Power of Attorney is the
immediate direct involvement and oversight of the Court.
An involuntary appointment occurs when an individual has lost the capacity to make decisions
for themselves. The Court will then make the decision on whom to appoint as Conservator
as well as oversee all their actions. Smart planning by individuals will designate an
Involuntary Conservators while they are still capable of making such decisions.
Planning ahead is always best. Having control and a say in how your finances or how you
will be cared for, and choosing that Power of Attorney or Conservator should provide
some peace of mind not only for you but for your family.
If you need assistance with a Power of Attorney or Conservatorship, call The Prue Law Group.