Conservatorships

1. Types of Conservatorships in Michigan

In Michigan, conservatorships can be broadly categorized into two types: general conservatorships and limited conservatorships. The specific type of conservatorship is determined by the needs of the individual and the court’s evaluation of their capacity to manage their finances.

a. General Conservatorship

A general conservatorship is the most comprehensive type, where the conservator is granted full authority over the protected individual’s financial matters. This includes managing income, paying bills, making investments, filing taxes, and ensuring that the individual’s property is properly maintained and protected. The conservator’s authority is wide-ranging and intended to fully oversee the financial wellbeing of the individual.

This type of conservatorship is typically applied when an individual is fully incapacitated and unable to handle any aspect of their financial affairs on their own.

b. Limited Conservatorship

A limited conservatorship is granted when the individual is still able to handle some aspects of their financial affairs but requires assistance with others. In this arrangement, the conservator has limited authority, and their responsibilities may include helping the protected individual with specific financial tasks, such as paying bills or managing investments. The goal of a limited conservatorship is to empower the individual to make some decisions while still offering the necessary support for more complex financial matters.

For example, a person with early-stage dementia may retain the ability to manage day-to-day spending but may struggle with more complex financial decisions, such as managing a retirement account or dealing with investments.

2. Establishing a Conservatorship in Michigan

In Michigan, the process of establishing a conservatorship is initiated by filing a petition with the probate court in the county where the protected individual resides. The petition must include information about the individual’s condition, why a conservatorship is necessary, and why the proposed conservator is qualified to handle the individual’s financial affairs.

The court will schedule a hearing to evaluate the case and determine whether a conservatorship is needed. During the hearing, the court may require medical testimony or evaluations to confirm that the individual is incapacitated and unable to manage their finances. If the court determines that a conservatorship is appropriate, it will issue an order appointing a conservator.

a. Petitioning for a Conservatorship

The petition for a conservatorship in Michigan must contain several key elements:

• Personal information about the individual seeking the conservatorship and the person who will be appointed as the conservator.
• Medical evidence demonstrating that the individual is unable to manage their financial affairs.
• Explanation of the proposed conservator’s qualifications and reasons why they should be appointed to manage the individual’s finances.
• Notice of hearing, which is served to all interested parties, such as family members or others with a legal interest in the case.

b. Court Hearing and Decision

The court hearing is an opportunity for the judge to assess whether the individual is indeed incapacitated to the point where a conservatorship is necessary. If the judge finds that the individual lacks the ability to manage their finances and that the proposed conservator is suitable, the court will grant the conservatorship.

It is important to note that the individual subject to the conservatorship (the protected individual) has the right to contest the conservatorship. If the individual is capable of understanding the process, they may object to the appointment of a conservator or dispute the need for a conservatorship altogether.

3. Responsibilities of a Conservator

Once a conservatorship is established, the conservator assumes significant responsibilities. These responsibilities are taken seriously by the court, and conservators are held accountable for their actions. Some of the key duties of a conservator in Michigan include:

• Managing assets and finances: The conservator must manage the protected individual’s income, property, and investments in a way that protects the individual’s financial wellbeing.
• Paying bills and expenses: The conservator is responsible for ensuring that the protected individual’s bills, such as medical bills, utilities, and housing costs, are paid on time.
• Reporting to the court: Conservators are required to file regular reports with the court regarding the financial status of the protected individual’s estate. These reports include accounting records and an explanation of how the individual’s finances are being managed.
• Acting in the best interests of the protected individual: The conservator must always act in the best interests of the individual, ensuring that their financial needs are met while protecting their assets from exploitation or mismanagement.

The conservator’s role is critical to the financial stability and wellbeing of the protected individual, and Michigan law requires that they act prudently and ethically in their decision-making.

4. Ending or Modifying a Conservatorship

A conservatorship can be terminated or modified if the protected individual’s condition improves or if circumstances change. For example, if a person regains the ability to manage their finances or if a more suitable conservator is found, the court may modify or end the conservatorship. A petition to terminate or modify a conservatorship can be filed with the probate court.

In addition, a conservator may resign or be removed by the court if they are not fulfilling their responsibilities appropriately. If a conservator is found to be mismanaging funds or acting against the best interests of the protected individual, the court may appoint a new conservator.

5. Alternatives to Conservatorship

In some cases, a power of attorney or a trust may serve as an alternative to a conservatorship. These legal tools can provide a more flexible and less invasive way for individuals to manage their financial affairs if they become incapacitated. For example, a durable power of attorney allows a person to appoint someone to make financial decisions on their behalf if they are unable to do so.

However, when a person is unable or unwilling to establish these legal instruments before becoming incapacitated, a conservatorship may be the only available option.

6. Conclusion

Conservatorships in Michigan are an important legal tool to protect vulnerable individuals who can no longer manage their own financial affairs. Whether due to cognitive decline, physical impairment, or other factors, conservatorships ensure that an individual’s financial wellbeing is properly managed. If you are considering a conservatorship for a loved one, it’s essential to work with an experienced attorney to navigate the legal process and ensure that the conservatorship is in the best interests of the individual. By understanding the types, responsibilities, and procedures surrounding conservatorships, you can help ensure that your loved one receives the care and protection they deserve.

Works Cited

1. Michigan Probate Court. "Conservatorship," Michigan Courts, 2024, https://www.michigan.gov/courts.
2. State Bar of Michigan. "Guardianship and Conservatorship," State Bar of Michigan, 2024, https://www.michbar.org.
3. Michigan Legal Help. "Conservatorship in Michigan," Michigan Legal Help, 2024, https://michiganlegalhelp.org.