A judicial procedure that appoints someone to take charge of an incapacitated person's legal, financial and personal affairs may be called a "conservatorship," "guardianship," or some other term in your state. The term "conservatorship" is used in this Fact Sheet.

A conservatorship may be established after a relative, friend or public official petitions the court for appointment of a "conservator." The petition must contain information on why the individual (the "conservatee") cannot manage his or her financial affairs or make decisions concerning his or her personal care. An investigation is conducted under the court's direction to determine if the individual is truly incapacitated and whether appointment of a conservator is justified. The court holds hearings and determines whether or not the conservatorship is required. The types of special powers to be granted to the conservator are decided.

Advantages of a conservatorship include a higher degree of protection for the conservatee than with other mechanisms. The conservator must file reports and inventories and accountings with the court. A court investigator also visits the conservatee regularly to determine if a conservatorship continues to be necessary. Disadvantages include the costs of the legal proceedings and the cumbersome requirements to return to court for approval of various transactions. Also, the details of a conservatorship become part of a public record, a loss of privacy that many find intolerable.

The two types of conservatorship are "of the estate" and "of the person."

• Conservator of the Estate: In this type of conservatorship, the conservator handles the financial and legal affairs of the conservatee. The conservator collects the person's assets, pays bills, makes investments, etc. However, court supervision must be sought for some transactions, such as the purchase or sale of real property, borrowing money or "gifting" of assets.
• Conservator of the Person: Decisions about medical care, food, clothing and residence are made by this type of conservator. In the case of mental health facility placement, however, special requirements must be followed.