What is a conservatorship?

With so much talk around conservatorship lately, here’s everything you need to know about how it works, and the pros and cons.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Middle age senior woman sitting at the table at home working using computer laptop clueless and confused expression with arms and hands raised.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Conservatorship is a hot topic right now. But what is it, and why is it in the spotlight? Let’s break down what you should know. 

What is a conservatorship?

A conservatorship is a common legal arrangement in the United States. It gives one or more people (the conservators) control over another adult’s personal and financial affairs. Why is this necessary? Well, sometimes we lose the capacity to make our own decisions if we’re ill or infirm in some way.

So, conservatorships ensure there’s someone on our side, helping us make some decisions or providing for us when we can’t. 

There are four types:

  1. Financial: someone has power over the ‘conservatee’s’ financial affairs, including tax, investments and real estate.
  2. Physical: they have control over the person’s health care and wellbeing.
  3. General: gives someone control over the person’s financial and physical affairs. It’s more common than a physical conservatorship.
  4. Limited: the conservator can only make a few decisions on someone’s behalf – there’s still a lot of personal autonomy. 

Let’s check out some famous examples to see how it all works.

Britney Spears

First, let’s talk about Britney Spears. She’s been under a conservatorship since 2008, and she’s currently fighting the order. But what’s going on, and why is she fighting it? Here’s what we know. 

  • In February 2008, Britney suffered a mental breakdown. The court appointed her father as a temporary (and then permanent) conservator.
  • Britney’s father had a huge amount of control over her life. He made career decisions for her and controlled her finances.
  • Next, in 2019, her father stepped down for a while and let someone else take control, but he now wants to return as co-conservator.  
  • It’s clear that Britney doesn’t want her father as a co-conservator. And so, there’s a legal battle going on. 

The upshot? Britney wants some autonomy back, but her father is still co-conservator for the time being. We can only watch and wait to see what happens next.

Amanda Bynes

Next, we have actress Amanda Bynes. After her mental health declined in 2014, the court appointed her mother as conservator. She’s been in charge of Bynes’s estate ever since. 

Joni Mitchell

Finally, there’s music icon Joni Mitchell.

Back in 2015, Joni Mitchell suffered a brain injury and couldn’t look after herself for some time. The court appointed her friend, Leslie Morris, as conservator until she got better. 

Do we have anything similar in the UK?

Yes. It’s called a deputyship in England and Wales, and a guardianship in Scotland and Northern Ireland. 

In both cases, the premise is the same: these orders help safeguard someone’s finances and physical health when they can’t look after themselves. 

What responsibilities does a conservator have?

Conservators have a ‘fiduciary duty’ to the conservatee. They must act in their best interests at all times. Duties include:

  • Paying bills on time (e.g. credit card payments)
  • Filing taxes
  • Overseeing investments 
  • Providing money for essentials 

They can’t use the conservatee’s money for personal gain. 

How long does a conservatorship last?

It depends. Some only last for 90 days or so, while others can last forever. It all comes down to the individual case and what the person needs.

Can you challenge a conservatorship?

Yes. If the conservatee is once again capable of making their own financial decisions, they can challenge a conservatorship. It’s not always easy to suspend a conservatorship or replace the conservator, though.

You must get legal advice if you plan on challenging such an arrangement.

Takeaway

If there’s anything we can take from the Britney Spears saga, it’s this: there’s nothing simple about conservatorships. And, in reality, the same principle applies in the UK. You must think really carefully before agreeing to act as deputy or guardian, and you must always have someone’s best interests in mind. 

Worried that someone’s abusing their position as deputy or guardian? Contact either the Office of the Public Guardian, or the Scottish equivalent.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »