Many people, when they hear the word "probate" think of the court administration after death. However, there is another apsect of probate, called "living probate," that deals with situations where someone is incapacitated and unable to take care of their own well being and finances. In these situations if it has not been planned for through powers of attorney, it may be necessary to establish a guardianship and conservatorship for them.
A guardian is appointed by the court, after someone requests to be appointed, to oversee the health and well-being of an individual. The guardian must, on an annual basis, file reports with the court as to the status of the incapacitated individual, ward. However, the guardian does not handle any finances or assets for the ward.
That is where the conservator comes into play. A conservator is responsible for managing the finances of the ward, this includes paying bills and investing and paying taxes. Similar to the guardian, the conservator also has to provide on an annual basis an accounting of all income, expenses and changes in the investments of the ward.
These two "agents" may or may not be the same person.
Establishing a conservatorship or guardianship can be time-consuming and expensive. To avoid these procedures, it is ideal to execute a powers of attorney prior to losing your competency, which in most situations negates the need to have a guardian or conservator appointed
Guardianship is designed to protect incapacitated people, but it's become a tool to victimize both the incapacitated and those who aren't incapacitated instead. The guardians and lawyers get rich while giving their Wards the shaft.
Courts are routinely forcing guardianships despite advance directives executed and in place --- families are destroyed, bank accounts broken. The horror is almost undescribable.
For more information about the dark side of guardianships, visit the National Association to STOP Guardian Abuse at www.StopGuardianAbuse.org and read victim's stories.