Conservatorship in Michigan: Protecting Your Finances When You Can’t

Conservatorship is a vital legal tool designed to protect individuals who can no longer manage their own financial affairs. In Michigan, a conservatorship involves the probate court appointing a conservator to handle the estate, income, and assets of a “protected individual.” This arrangement becomes necessary when someone faces challenges due to mental illness, physical disability, chronic substance use, or other conditions that impair their ability to make sound financial decisions. Without proper management, assets could be wasted, bills unpaid, or opportunities lost—leading to financial devastation for the individual and their family.

At Patrick & Associates, PLLC, led by experienced Michigan probate attorney Dean E. Patrick, we understand the sensitivity and complexity of conservatorships. These matters often arise during difficult times, such as aging, illness, or unexpected incapacity. Our firm helps families establish, modify, defend, or contest conservatorships with compassion and expertise. Whether you’re seeking protection for a loved one or planning ahead, we guide you through Michigan’s Estates and Protected Individuals Code (EPIC) to ensure the best outcomes. Conservatorship isn’t about taking control—it’s about providing responsible oversight while preserving as much independence as possible.

What Is a Conservatorship and When Is It Needed?

Under Michigan law, a conservator is a court-appointed fiduciary responsible for managing a protected individual’s finances and property. This includes everything from paying bills and investing assets to filing taxes and protecting against fraud. The “protected individual” may be an adult or minor unable to handle their affairs effectively.

A conservatorship may be necessary when:

• The individual cannot manage property due to mental deficiency, physical illness, disability, chronic intoxication, or similar issues.
• Assets risk being wasted or dissipated without proper oversight.
• Funds are needed for the individual’s support, care, or welfare.
• Even if mentally competent, an older adult or someone with physical limitations requests assistance.

Courts prioritize the least restrictive options, encouraging maximum self-reliance. For instance, a limited conservatorship might allow the individual to handle small daily expenses while the conservator oversees larger assets. This approach balances protection with dignity.

Unlike DIY solutions or ignoring the issue, professional guidance ensures the process respects the individual’s rights and avoids unnecessary intrusion.

The Conservatorship Appointment Process

Establishing a conservatorship begins with filing a petition in probate court. Eligible petitioners include the individual themselves, family members, or interested parties concerned about asset mismanagement.

Key steps include:

• Filing the Petition: Provide details about the individual’s situation, assets, and why protection is needed.
• Court Review: The court may appoint a guardian ad litem (GAL) to investigate and represent the individual’s interests. Evaluations by physicians or mental health professionals help determine necessity and scope.
• Hearing: The judge requires “clear and convincing evidence” of need. If approved, a suitable conservator is appointed based on priority: nominated individuals (e.g., via power of attorney), spouse, adult children, relatives, or professionals.

The appointed conservator often posts a bond for protection and receives reasonable compensation from the estate. The process emphasizes alternatives like powers of attorney first, only proceeding if truly necessary.

Powers and Duties of a Conservator

Conservators act as fiduciaries, owing duties of loyalty, care, and prudence—similar to a trustee. Key responsibilities include:

• Inventory and Records: File a complete asset inventory shortly after appointment and maintain detailed records.
• Annual Accounting: Submit reports to the court, open to review by interested parties.
• Prudent Management: Invest according to Michigan’s prudent investor rule, avoid conflicts of interest, and separate personal and estate funds.
• Broad Powers: Collect income, pay bills, invest, insure assets, borrow money if needed, settle claims, and even operate businesses.

Distributions support the protected individual’s needs and dependents, considering their accustomed lifestyle. Upon the individual’s death, the conservator secures the estate for the personal representative.

These duties demand patience, financial acumen, and sensitivity. Family members often serve, but professionals may be appointed for complex estates.

Conservatorship vs. Guardianship vs. Power of Attorney

Understanding distinctions prevents confusion:

• Power of Attorney (POA): A private document where you voluntarily appoint an agent for finances or healthcare. No court involvement; revocable while competent.
• Guardianship: Court-appointed for personal decisions like medical care and living arrangements.
• Conservatorship: Focused solely on finances and property.

POAs are proactive and private—ideal for estate planning. Guardianships and conservatorships are reactive, court-supervised, and more intrusive, used when planning wasn’t done or fails.

Courts often consider existing POAs as alternatives or for nominating fiduciaries.

Common Conservatorship Disputes and Challenges

Disputes arise frequently, as conservatorships impact fundamental rights. Common issues include:

• Contesting appointment due to insufficient evidence of incapacity.
• Seeking removal for mismanagement, breach of duty, or conflicts.
• Modifying scope as needs change.
• Defending against accusations as a current conservator.
• Terminating when capacity is restored.

DIY approaches often fail due to procedural errors, emotional biases, or inadequate evidence. Our firm handles contested hearings aggressively, protecting vulnerable individuals from exploitation while defending dedicated conservators.

Frequently Asked Questions About Conservatorship in Michigan

Here are answers to some of the most common questions we receive about conservatorship:

Benefits of Professional Conservatorship Guidance

A well-managed conservatorship provides:

• Asset protection from waste or fraud.
• Court oversight ensuring accountability.
• Peace of mind for families during crises.
• Customized solutions preserving independence.
• Efficient handling of complex finances.

Proactive planning with POAs can often avoid the need entirely.

Why Choose Patrick & Associates, PLLC?

Dean E. Patrick brings decades of experience in Michigan probate law, including hundreds of guardianship and conservatorship cases. Based in Southfield, we serve Wayne, Oakland, and surrounding counties with personalized, compassionate representation. We handle everything from straightforward appointments to high-conflict disputes.

Your initial consultation is free—no obligation, just answers.

Don’t navigate this alone. Time is critical when financial vulnerability exists.

Contact us today at (248) 663-2566 or complete our online form to schedule your complimentary consultation.

Let us protect your loved one’s financial future with expertise and care.