When a minor or incapacitated adult requires someone to make financial decisions for them, the court appoints a conservatorship. This may require a lawyer who specializes in this area that will be able to assist with legal proceedings during this time. To do this, conservators will need to find a lawyer within their area by searching for a ‘conservatorship lawyer in Denver‘, for example, so they can be paired with the best one for their situation. A conservator handles the individual’s investments, assets, and bank accounts and handles collecting any debts, paying bills, and managing cash flow.
In What Situations is a Conservator Appointed?
For minors, the court appoints a conservator when their parents are incarcerated, incapacitated, dead, or otherwise unable to perform their parental duties and have left their children a certain amount of money, including an estate in trust.
A court might appoint a conservator for incapacitated adults as well. The person must have a problem making sound financial decisions. Examples might include elderly individuals with dementia or Alzheimer’s or individuals with mental health disorders, development disorders, or a physical ailment that impacts their financial judgment. Generally, a doctor must determine that an individual is incapacitated for the court to order a conservatorship.
What Is the Difference Between a Conservator and a Guardian?
This is similar to guardianship in that another individual makes important decisions for the minor or incapacitated adult. However, a conservator specifically handles the finances. Generally, a conservator is appointed when the individual’s estate is more than $24,000. A guardian will handle day-to-day finances and monies and small funds. The same person might act as guardian and conservator.
Conservatorship In Business
Another type of conservatorship is government control of private corporations or organizations, which means that the government has temporary control over the business. Businesses can also be placed under conservatorship by a debt collector as a more lenient version of a receivership. In where a receivership terminates the rights of managers and shareholders, a conservator assumes the rights temporarily in order to handle a major problem.
If you become a conservator of someone’s estate or trust, you might need an IRS-EIN-Tax-ID. At IRS EIN Tax ID Filing Service, we provide assistance in applying for a federal tax ID number. We can also help with an EIN lookup if you are unsure if you already have one. Contact us to find out more.