In situations where you are unable to make decisions for yourself because of a physical or mental disability, knowing the differences between Power of Attorney and conservatorships can be crucial. This article will provide all the information you need about how to choose a legal agent and what a Power of Attorney are.
What is a Financial POA?
A Financial POA, or financial power of attorney, is a legal document that allows you to choose a family member to manage your finances. An appointee, or agent, will assume all responsibilities. There are several types of POA: general, durable, general and non-durable.
What’s a general power-of- attorney?
Agents can act for you in any situation that is permitted by law. If you grant power of attorney, your agent can act for your benefit in all areas.
What’s a durable general power attorney?
Even if you are incapacitated, or die, a durable power of attorney agreement remains in force. These arrangements allow you to plan for your mental or physical declines while you give your decision-making powers to the agent.
What’s a non-durable power to attorney?
When you become incapacitated, non-durable power arrangements cease. The appointed agent is removed from their power and the court is responsible for appointing a conservator.
What is a Conservatorship?
A conservatorship is an order issued by a court that transfers financial assets to another person. There are two main types of conservatorships: general and limited.
Limited conservatorship
For those who are disabled, a limited conservatorship can be established. This gives the agent only certain powers. Your agent will only take care of your financial affairs if you are unable to handle financial matters, but can arrange healthcare for yourself.
General conservatorship
When an older adult is unable to make decisions about their financial, health, housing, or food affairs, a general conservatorship may be used. A conservator or agent is appointed to manage these affairs on behalf of the senior adult.
In what situations are conservatorships created?
A conservatorship can be established to help a minor or incapacitated individual if they are unable to manage their legal, financial, or medical affairs. A person with dementia is one example of a situation where conservatorships may be necessary.
What is the difference between a Financial POA or a Conservatorship.
A Financial POA differs from a conservatorship in that it is voluntary. You can choose to have a POA granted to you and allows them to make their own decisions. Conservatorships, however, require a court. If you wish to appoint conservator, you must file a petition with the court. The court will choose someone and grant them the right of choice.
It is possible to revoke POA at any time, but it is not possible to revoke conservatorships. If you wish to cancel a conservatorship, you must get a court order.
There are some other differences between conservatorships and Financial POAs. It is possible to establish the financial power-of- attorney before an incapacitated person becomes disabled.
Do Conservatorships Intrude on POAs in Certain Situations?
A conservatorship cannot override POAs such as durable POAs. However, conservatorships can be used to override POAs in conflict situations.
A general power of attorney can be overridden by a court to allow you to manage your financial affairs and responsibilities.
What happens if someone asks for conservatorship after a POA is in effect?
A POA may be in place. If you request a conservatorship, the judge and court might first consider that you already possess a power-of-attorney. A POA may not suffice, so they might grant a conservatorship in order to meet the additional requirements.
Get all the facts you need about Conservatorships and POAs
Before you establish a conservatorship or power of attorney, it is important to gather all information about them. To ensure you are confidently establishing a conservatorship, power of attorney or other legal arrangement, it is a good idea to consult experts.