A conservatorship is a legal arrangement where the court appoints an individual or organization, called a conservator, to manage the financial affairs of another person who is unable to do so themselves. In Colorado, conservatorships are governed by the Colorado Probate Code and are often established to protect individuals who are incapacitated, elderly, or otherwise unable to handle their own assets responsibly.
Unlike a guardianship, which focuses on personal care and decision-making, a conservatorship is strictly about financial matters. The person under conservatorship (known as the “protected person”) may still make their own healthcare and living decisions, but they rely on the conservator for money management, bill payments, investment decisions, and asset protection.
Conservatorships can provide peace of mind for families, especially in situations where a loved one is experiencing cognitive decline or has suffered a serious injury that impairs their ability to make sound financial choices. They are also helpful in preventing financial abuse or exploitation.
Who May Need a Conservator?
Conservatorships are not just for the elderly. They can benefit individuals of all ages when certain conditions are met. In general, someone may need a conservator if they:
- Have been diagnosed with Alzheimer’s disease, dementia, or another form of cognitive impairment
- Have a physical or mental disability that interferes with managing finances
- Are recovering from a brain injury or stroke
- Are minors who receive a large inheritance or legal settlement
- Are being exploited financially and need court protection
For example, if an elderly parent begins showing signs of memory loss and forgets to pay bills, mishandles investments, or becomes vulnerable to financial scams, their adult child may petition the court to be appointed as conservator. This allows the child to step in legally and manage money matters without assuming control over the parent’s personal decisions.
In another scenario, if a teenager receives a large personal injury settlement, a conservatorship may be established to ensure the funds are protected and used appropriately until the minor reaches adulthood.
How Does the Conservatorship Process Work in Colorado?
The conservatorship process begins with filing a petition in probate court. The petitioner (usually a family member) must provide evidence that the individual is unable to manage their property or finances due to a condition that impairs their ability to make rational decisions. The court may appoint a physician or psychologist to evaluate the individual and provide an expert opinion.
Once the petition is filed, a hearing is scheduled. During the hearing, the judge will consider medical reports, testimony from family members, and statements from the person who may become the protected individual. If the court agrees that a conservator is needed, they will appoint someone qualified, often a spouse, adult child, or trusted relative. In some cases, the court may appoint a professional fiduciary or public conservator.
After appointment, the conservator must adhere to strict responsibilities, which include:
- Managing bank accounts, property, and investments
- Paying bills and handling debts
- Maintaining detailed financial records
- Filing annual reports with the court
The conservator is expected to act in the best interest of the protected person and must avoid conflicts of interest. Any major financial decisions, such as selling property or making large purchases, often require court approval.
Temporary vs. Permanent Conservatorships
In some cases, a temporary conservatorship may be granted in emergency situations. This can happen when someone is in immediate danger of financial harm, for example, if they are being exploited or have suddenly become incapacitated after an accident. Temporary conservatorships are typically granted for a limited period and may transition into permanent arrangements if needed.
Permanent conservatorships are intended to provide long-term financial protection. They remain in place until the protected person regains capacity, passes away, or the court determines the arrangement is no longer necessary. Courts are generally cautious about granting conservatorships and will only do so if no less restrictive alternatives are available.
Alternatives to Conservatorship
A conservatorship is a powerful legal tool, but it’s not always the only option. In some situations, less intrusive alternatives may provide adequate support, such as:
- Durable Power of Attorney: Allows someone to manage another person’s finances without court involvement. It must be signed while the person is still mentally competent.
- Joint bank accounts: Allow a trusted individual to help pay bills or manage day-to-day finances.
- Living trusts: Can provide structured asset management for people who want to plan ahead and avoid court involvement.
These alternatives are often preferred when possible, as they avoid the oversight and legal complexity that come with court-appointed conservatorships. However, they require advance planning and are not suitable when someone is already incapacitated or being exploited.
Why Work With a Conservatorship Attorney?
Establishing a conservatorship in Colorado involves more than just paperwork. Courts take these proceedings seriously, and every step must be handled with precision and care. Whether you’re petitioning to become a conservator or defending against one, legal representation ensures your rights, and your loved one’s interests, are protected throughout the process.
At Evans Case, we guide families through the conservatorship process with professionalism, empathy, and deep knowledge of Colorado probate law. We can help you understand whether conservatorship is the right solution, assist with filing and court representation, and provide support in ongoing conservator duties.
If you're concerned about a loved one's ability to manage their finances, or if you’ve been appointed as a conservator and need legal guidance, contact us today. Our team is here to help you make informed, confident decisions about your family’s future.
