A conservatorship begins the way most families do not want anything to begin: with a petition, a hearing, and a judge examining medical evidence about a relative's mental capacity in open court. If the judge is satisfied, they appoint a conservator to control that person's money — bank accounts, investments, property, income, bills.
The terminology is not consistent nationally. Some states use conservator for finances and guardian for personal and medical decisions; others call the financial role guardian of the estate; a few use the words the other way around. Check what your own state means rather than assuming the definition you read elsewhere applies.
Court supervision continues after appointment. Conservators typically file an initial inventory, then periodic accountings the court reviews, and may need permission before selling real estate or making significant transactions. The oversight protects the vulnerable adult, and it also means ongoing legal and accounting costs paid from their assets, plus a public record of their financial affairs.
Almost all of this is avoidable in advance. A durable power of attorney signed while you still have capacity appoints your own agent, on your own terms, without a courtroom. The catch is timing: once capacity is gone, the window to sign one has closed, and conservatorship becomes the only remaining route.
Frequently asked
- How is a conservatorship different from a power of attorney?
- One is chosen by you, the other imposed on you. A durable power of attorney is a private document naming an agent you selected, effective without any court involvement. A conservatorship is a public proceeding in which a judge decides that you cannot manage your affairs and appoints someone — possibly not who you would have chosen. Conservatorship is what happens when no power of attorney exists, which is the strongest practical argument for signing one early.
- Can a conservator manage crypto or online accounts?
- Legally they hold authority over the person's property, digital assets included, but authority does not solve access. Exchanges vary widely in how they handle court orders, and self-custodied holdings are unreachable without keys no court can compel into existence. Conservators regularly discover assets they cannot touch, or fail to discover them at all. An inventory of digital holdings kept somewhere findable is what closes that gap.
- Can a conservatorship be ended?
- Yes. It is not permanent by design, and it can be terminated if the person recovers capacity, or modified if their circumstances change. A conservator can also be removed for mismanagement or replaced at their own request. Ending one requires going back to court with evidence, which means the same expense and formality as establishing it. Courts in several states have also moved toward narrower, limited conservatorships covering only what the person genuinely cannot handle.