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Hi Everyone – Would like opinions from fellow DMMs who work with conservatorships.
Here is the situation: Client has recently been appointed guardian and conservator of both parents by court ordered judgement of incapacity and disability. Parents have been financially abused by sister which is also facilitated the need for a conservatorship. Client is becoming overwhelmed with the day to day financial matters of his parents and has sought my help.
I want to provide the best DMM service possible while adhering to the standards of practice and code of ethics that we have all agreed to as DMMs.
As a newer DMM this is my first time working with a conservatorship.
My question is this: What do I need to know as a DMM that I don’t know about working with conservatorships?
For example, is it harder to pay bills because the DMM is not the conservator?
How do you communicate with creditors since the DMM is not the conservator?
What financial responsibilities do you push back to the client because as a DMM you can not handle?Looking forward to your opinions and advice!
Todd, Daily Money Man
The way the courts treat conservator banking relationships varies by state. If they require a restricted account, most banks use cashiers checks and require the conservator to present court documents showing court approval for withdrawing funds. In some cases, there is a smaller unrestricted account for which the bank moves money based on a pre-approved budget. That money must be used for the specific items in the budget like utilities and mortgages.
You could assist the client to set things up but I doubt the court would allow you to be delegated the authority for the above role. If client oversteps the delegated authority, they may be removed. I would hold a conference with the atty who represents the incapacitated adults as that person is to protect those people and also should have a clear understanding of what is being delegated and why.
Amy – Good advice, thank you. Fortunately, this is not a restricted account, or I would not have taken on the client. And I agree the court is not going to delegate authority to the DMM. Therefore this may be more of an advisory role to the client.
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