Conservatorships are legal arrangements that grant one person, known as a conservator, the authority to manage the financial or personal affairs of another individual, known as a conservatee. Typically, conservatorships are established when the conservatee is no longer capable of managing their finances, property, or personal care due to age, illness, or incapacity.

In Alaska, conservatorships play a vital role in protecting vulnerable individuals from financial exploitation and securing their well-being. Whether you’re concerned about a loved one’s ability to manage their affairs or you’re considering appointing a conservator for your future, it's important to consult an experienced estate planning attorney for help.

At the Law Office of Justin S. Eppler, LLC, we are experienced in providing skilled legal advice and guidance for conservatorships. Located in Anchorage, Alaska, we serve clients in the surrounding areas. Reach out today to schedule a consultation.

What Is a Conservatorship?

A conservatorship is a court-appointed arrangement that gives one person the legal authority to make decisions on behalf of another who's unable to do so. Conservatorships are typically sought when a person becomes incapacitated due to age, mental illness, disability, or injury, and is no longer able to manage their financial or personal matters.

Conservatorships are distinct from guardianships, though the two terms are often confused. A conservator is responsible for managing a conservatee’s financial and legal affairs, whereas a guardian typically oversees personal decisions, such as medical care and living arrangements.

In some cases, one person may serve as both a conservator and a guardian, but they’re legally separate roles with different duties.

Types of Conservatorships in Alaska

In Alaska, different types of conservatorships can be tailored to meet the needs of the conservatee. These include general conservatorships and limited conservatorships. The type of conservatorship you establish will largely depends on the specific needs and circumstances of the conservatee.

General Conservatorship

A general conservatorship is typically set up when the conservatee is entirely unable to manage their financial affairs. This type of conservatorship grants the conservator full control over the conservatee’s assets, income, investments, and property.

The conservator is responsible for making all financial decisions on the conservatee’s behalf, including paying bills, managing bank accounts, and handling real estate transactions.

This is common in cases involving older adults who have become incapacitated due to dementia, Alzheimer's disease, or other cognitive impairments. It may also be appropriate for individuals with severe disabilities or mental illness that prevents them from managing their affairs.

Limited Conservatorship

A limited conservatorship is designed for conservatees who are capable of handling some aspects of their financial life but need assistance with specific tasks.

In a limited conservatorship, the court may grant the conservator authority over only certain aspects of the conservatee’s finances, such as managing a bank account or paying bills, while allowing the conservatee to maintain control over other areas of their life.

Limited conservatorships are often used in situations where the conservatee is partially incapacitated or has a disability that only affects certain aspects of their decision-making abilities. For example, someone with mild cognitive impairment or a physical disability might benefit from a limited conservator to handle financial matters while retaining control over personal decisions.

The Process for Establishing Conservatorship

The process for establishing a conservatorship in Alaska begins with filing a petition with the court. This petition can be filed by a family member, friend, or even the individual in need of assistance. The court will then schedule a hearing to determine whether the conservatorship is necessary and who should be appointed as the conservator.

1. Filing the Petition

To initiate a conservatorship, the petitioner must file a legal document known as a petition for conservatorship with the appropriate Alaska court. The petition should include information about the proposed conservatee’s condition, why the conservatorship is necessary, and details about the proposed conservator.

The court will also require documentation supporting the petition, such as medical evaluations or statements from healthcare professionals.

Once the petition is filed, the court will notify the conservatee and their immediate family members about the upcoming hearing. The conservatee has the right to contest the conservatorship or propose an alternative conservator if they believe the proposed conservator isn’t suitable.

2. The Court Hearing

During the hearing, the judge will review the evidence and determine whether the conservatorship is in the best interest of the conservatee. The judge will consider factors such as the conservatee’s mental and physical condition, their ability to manage their affairs, and the qualifications of the proposed conservator.

The court may also appoint an investigator to evaluate the situation and make recommendations to the judge.

If the court determines that a conservatorship is necessary, it will issue an order appointing the conservator and outlining the scope of their authority. The conservator is then required to file regular reports with the court, detailing how the conservatee’s finances are being managed.

3. The Conservator’s Responsibilities

Once appointed, the conservator has a fiduciary duty to act in the best interest of the conservatee. This means that the conservator must make financial decisions that benefit the conservatee and protect their assets.

The conservator is responsible for managing the conservatee’s finances, paying bills, investing assets, filing taxes, and making other financial decisions.

The conservator must keep accurate records of all financial transactions and file periodic reports with the court, outlining the conservatee’s financial status and how funds have been spent. In Alaska, conservators are required to submit annual accountings to the court, which are reviewed to make sure that the conservator is fulfilling their responsibilities appropriately.

Conservatorship vs. Power of Attorney

One common question is how conservatorships differ from powers of attorney (POA). Both legal tools allow one person to make decisions on behalf of another, but there are key differences in how they function.

A power of attorney is a voluntary agreement in which one person (the principal) grants another person (the agent) the authority to make financial or healthcare decisions on their behalf. The principal must have the mental capacity to create a power of attorney, and they can revoke it at any time.

A power of attorney is often used as a preventive measure for future incapacity, allowing the principal to designate someone to manage their affairs if they become unable to.

In contrast, a conservatorship is a court-ordered arrangement that’s typically established when the individual is already incapacitated and can’t make decisions on their own. Unlike a power of attorney, the conservatee can’t revoke the conservatorship unless they regain capacity and petition the court to terminate it.

Terminating a Conservatorship

Conservatorships aren’t always permanent. There are situations where a conservatorship may be terminated if the conservatee regains their capacity to manage their affairs or if the conservator is no longer able to fulfill their duties.

To terminate a conservatorship, the conservatee or another interested party must file a petition with the court. The court will then hold a hearing to evaluate whether the conservatorship is still necessary. If the conservatee has regained their ability to manage their finances or if the conservator is no longer able to perform their duties, the court may terminate the conservatorship and restore the conservatee’s full control over their affairs.

In some cases, the court may appoint a new conservator if the current conservator is unable or unwilling to continue in their role.

Alternatives to Conservatorship

While conservatorships provide an essential safety net for vulnerable individuals, they aren’t the only option for managing someone’s financial affairs. There are several alternatives to conservatorships that may be appropriate depending on the conservatee’s needs and preferences.

1. Durable Power of Attorney

As mentioned earlier, a durable power of attorney allows an individual to designate someone to manage their finances in the event of incapacity. A durable power of attorney remains in effect even if the principal becomes incapacitated, making it a flexible and less restrictive alternative to conservatorship.

2. Revocable Living Trust

A revocable living trust is another option for managing an individual’s assets without the need for a conservatorship. With a revocable trust, the individual transfers ownership of their assets to the trust and designates a trustee to manage the assets if they become incapacitated. The trustee has a fiduciary duty to act in the best interest of the trust’s beneficiaries, and the trust can be modified or revoked at any time while the individual is still capable.

3. Joint Bank Accounts

In some cases, individuals may choose to add a trusted family member or friend to their bank accounts as a joint account holder. This allows the other person to access and manage the funds without the need for a formal conservatorship.

While these alternatives may be effective in some situations, they aren’t always suitable for everyone. It’s important to consult with an estate planning lawyer to determine the best approach for managing your or your loved one’s financial affairs.

Conservatorship Attorney Serving Anchorage, Alaska

If you’re considering establishing a conservatorship for a loved one or planning for your future, it’s essential to work with an experienced estate planning lawyer from the Law Office of Justin S. Eppler, LLC. We serve clients in Anchorage, Alaska as well as Fairbanks, Juneau, Wasilla, and Palmer. Managing the legal process can be challenging, and having a lawyer by your side can help. Call us today.