Chris Thomas

Judges

Frequently Asked
Questions (FAQ)

Filing A Claim

Rules of Court

Wills in Tennessee

Forms

Court Dockets

Case Information

Contact Us

Home

INFORMATION FOR CONSERVATORS

1. WHAT IS A CONSERVATOR?

A conservator is a person who is appointed by the Court to provide protection, assistance, and supervision of the person and/or property of a disabled person. A disabled person is one who is incapable of managing his or her own person and/or estate by reason of mental illness, physical illness or injury. Whether or not a person is in need of a conservator is a legal determination that is made by the Judge. When the Court appoints a conservator, the disabled person is often called a "ward." If the Court appoints a conservator solely to manage the assets of the ward, he or she is often called a "conservator of the estate." If the conservator is appointed to make decisions about the ward's medical care or other personal matters, the conservator is termed the “conservator of the person."

2. WHAT ARE THE DUTIES OF A CONSERVATOR?

A conservator has many important duties. It will be the responsibility of the conservator to show the Court that the following duties have been carried out properly. If the Court finds that a conservator has not done so, the conservator may be held in contempt of court, for which the penalty may include a fine or imprisonment. The conservator could also be removed and someone else appointed.

A. Duty to Provide and Renew Bond

A conservator who handles the assets of the ward will ordinarily be required by the Court to purchase a bond against loss to the ward’s assets. The ward’s funds may be used to pay the premiums of this bond. In a few cases, the Court may waive the requirement of purchasing a bond. Bonds must be renewed each year by paying an annual premium to the insurance company that issues the bond. If the assets of the conservatorship become either substantially less or if they exceed the amount of the bond, this fact should be brought to the attention of the Court so that the amount of the bond is decreased or increased as may be appropriate.

B. Duty to File an Inventory and a Property Management Plan

A conservator who handles the assets of the ward will ordinarily be required by the Court to purchase a bond against loss to the ward's assets. The ward's funds may be used to pay the premiums of this bond. In a few cases, the Court may waive the requirement of purchasing a bond. Bonds must be renewed each year by paying an annual premium to the insurance company that issues the bond. If the assets of the conservatorship become either substantially less or if they exceed the amount of the bond, this fact should be brought to the attention of the Court so that the amount of the bond is decreased or increased as may be appropriate.

C. Duty to Manage and Invest the Disabled Person's Assets

A conservator of the estate of the ward must take possession of all of the ward's assets. The conservator has the duty to formulate and carry out a plan for managing these assets. This plan is sometimes included in the original order appointing the conservator; otherwise, this plan must be submitted to the Court for approval within 60 days of the appointment. This may involve selling some assets, retaining others, and the manner in which the ward's funds are to be invested. Funds should be invested to earn income and may be invested only according to law. A conservator is personally liable for any losses that result from unauthorized or imprudent investments. The conservator must keep the ward's assets separate and apart from his or her own assets and can never borrow from the ward's assets or use them for any purpose without Court authorization.

D. Duty to File Accountings for the Disabled Person's Assets

A conservator of the estate of the ward must keep complete and accurate records of all the money and other assets which go into and out of the ward's estate. A running list of receipts and expenses should be maintained. It is very important to keep all canceled checks and bank statements pertaining to the ward's accounts. Any accounts containing the ward's funds (like checking accounts, savings accounts, and certificates of deposit) should be held in the name of the conservator on behalf of the ward. For example, "John Doe as Conservator for Bettie Doe." The ward"s funds must at all times be kept separate from the funds of the conservator. If a person serves as conservator for more than one disabled person, separate accounts must be kept.

Each year, the conservator of the estate of the ward is required to file an accounting showing in detail all of the ward's assets and their value, the income received by the ward and all of the expenditures made with the ward's funds during the preceding year. This annual accounting is sometimes called a settlement. In the settlement, each item must be explained and the current assets on-hand must be supported by the original of each bank statement and each canceled check written on the conservatorship account. In addition, the conservator needs to cause the ward to file applicable tax returns and assure the Court that this has been done. Either a copy of the tax return or an affidavit stating that no taxes are due should be attached to the annual settlement.

The conservator of the estate of the ward must file the settlements in a timely manner. Failure to do so could result in the individual being removed from his or her position as conservator. In very few situations, the Court will not require the conservator to file an annual settlement. To determine whether you qualify for this exception, you should consult your attorney.

The conservator must also submit with the annual settlement a report of the current physical and mental condition of the ward. The report enables the Court to determine if a need for the conservator's services remains.

E. Duty to Notify Court

In the event that the disabled person dies or if either the conservator or the disabled person moves from one address to another, the conservator has a duty to notify the Clerk of Probate Court in writing of the death or new address as soon as possible.

3. ARE THERE LIMITATIONS ON THE POWER OF A CONSERVATOR?

The Court will closely monitor the conservator's actions. A conservator may not spend the ward's assets, even for the ward's benefit, without Court approval. The only exceptions to this are that the conservator may pay court costs assessed by the Court, bond premiums, taxes for which the ward is liable, and the reasonable cost of preparation of the ward's tax return. Similarly, a conservator may not sell, trade, lease, mortgage, transfer, or discard the ward's property without Court approval. The Court's permission to spend the ward's money is required even if the conservator is a parent or other relative of the ward. However, the Court may, in its discretion, approve an expenditure of a budgeted amount each month. A conservator may use the ward's funds to pay for attorney fees incurred in carrying out the conservatorship, but Court approval must first be obtained.

4. WHAT HAPPENS IF CONSERVATORS DO NOT CARRY OUT THEIR DUTIES PROPERLY?

It is very important that a conservator carry out his or her duties properly. Failure to uphold these responsibilities may not only be detrimental to the ward but may also be costly for the conservator. When a conservator imprudently or illegally invests conservatorship funds, he or she may be held personally liable for the losses that result. Additionally, a conservator who performs his or her duties in an improper or untimely manner is subject to removal. Thus, in order to avoid such consequences, conservators must make every effort to properly carry out their conservatorship duties.

5. WHERE CAN THE CONSERVATOR TURN IF HE OR SHE HAS QUESTIONS?

In the course of performing their duties, conservators can encounter a variety of questions. You should always consult your attorney for advice in these matters. Although they may not give legal advice, the deputy court clerks may be helpful in answering questions regarding procedural matters. The deputy clerks of the Shelby County Probate Court may be reached at (901) 545-4040. The Clerk’s mailing address is 140 Adams Avenue, Room 124, Memphis, Tennessee 38103.The Court appreciates your willingness to carry out your important duties as a conservator. We hope the above information will be helpful to you.

THIS IS FOR GENERAL INFORMATION PURPOSES ONLY. IT IS NOT INTENDED TO BE A COMPLETE STATEMENT OF ALL DUTIES AND RESPONSIBILITIES OF A GUARDIAN. CONSULT YOUR ATTORNEY WHENEVER IN DOUBT.

Back