Minnesota Estate Planning Law: Minnesota Conservatorship

It can be a difficult day when you realize that a loved one is no longer able to independently manage his or her affairs.

Though it can be hard, and is sometimes met with resistance, it’s often essential that family members take action to protect that person from him or herself. While guardianships exist to ensure the physical care of an incapacitated person, a conservatorship is designed to protect that person’s financial well-being. The following article will explain what a conservatorship is and how it works as well as explain some of the advantages and disadvantages of the process.

What is conservatorship?

Conservatorships exist when an individual is unable to make financial decisions for him or herself. When a court determines that the individual needs the protection of another person, a conservator is named to act as the decision maker for the protected individual. Once a court finds that an individual is impaired and cannot make necessary decisions on his or her own behalf, that person then loses the right to manage his or her financial affairs until they are proven capable of doing so.

What are the duties of a conservator?

In Minnesota, conservators have 60 days after being appointed to inventory the protected person’s estate, listing the value of any real estate and personal property. After that, conservators are required to file annual accountings with the court detailing all property that has been received or sold. The conservator is also required to use that person’s assets to pay for the support and maintenance of the protected individual as well as pay that person’s debts and generally manage their financial or business affairs.

In many cases involving a Minnesota conservatorship, conservators are also required to post a bond which functions as an insurance policy in case the conservator steals or otherwise misappropriates the protected person’s property.

How is a conservatorship created?

Conservatorships can be created using a written documents, much like a will, where you designate a person you would like to serve as your conservator. You can also include instructions in this document pertaining to how you want certain financial matters or decisions to be handled. This is done in advance of future impairment and later, when you require a conservator, the court can name the person you choose and order your instructions be followed. You should understand that the court does not have to name this person as conservator if they determine that it is not in your best interest and, similarly, the person you choose is not obligated to accept the position. Given this, it’s critical to choose someone you trust and discuss the matter beforehand.

Beyond this preemptive conservatorship creation, others can also petition a court at any time when they believe someone is unable to manage their financial affairs due to an impairment in their decision-making ability. Once such a petition has been filed, a court investigator will interview the allegedly impaired individual and report back to the court on whether a conservatorship is necessary. Ultimately, a hearing will be held where a judge will decide whether to appoint a conservator.

Pros and cons of conservatorships

Some of the good things about a conservatorship are that they are subject to court supervision, which acts as an important safeguard to protect the property of an impaired person. Conservators are obligated to file inventories with the court as well as provide regular accountings to the judge overseeing the process, which provides a high degree of protection for the elder’s interests. Conservatorships, unlike alternatives such as durable power of attorneys, can also be helpful in cases where the impaired individual is unwilling to accept help.

One major downside to conservatorships is how time-consuming they are. Frequent court hearings are typical and the regular advice of an attorney can make the process quite expensive. Paperwork must be filed and records kept up to date. Conservatorships can also be an inefficient way of managing another person’s property as the conservator is required to continue returning to the court for approval of certain transactions such as selling property or borrowing money. Another downside to conservatorships is that the proceedings are part of the public record, something that can embarrass individuals who might prefer discretion or privacy in such sensitive matters.

Alternatives to conservatorship

Rather than create a conservatorship, Minnesotans can craft documents including revocable living trusts to manage a person’s financial affairs, durable powers of attorney to delegate financial decision-making authority and health care directives to delegate end-of-life decisions.

Dealing with impaired or incapacitated loved ones is a notoriously difficult and emotionally trying experience. An experienced Minnesota estate planning lawyer can help walk you through the process of handling delicate situations like those involving conservatorships or guardianships. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.
Source: “Conservatorship and Guardianship in Minnesota,” by, published at MNCourts.gov.