When it comes to power of attorney vs conservatorship, many people are unsure of the difference. Both of these legal concepts deal with giving someone else authority to make decisions on your behalf, but there are some key differences. In this blog post, we will discuss the main differences between them, as well as when each one is appropriate.
Power Of Attorney Vs Conservatorship
The major distinction between the two is that a power of attorney is a legal document that transfers authority to someone else to make choices on your behalf, while conservatorship is a court-ordered arrangement in which someone else is appointed to manage your affairs. There are two types of power of attorney: durable and non-durable.
A durable takes effect immediately and can be used if you become incapacitated, while a non-durable only takes effect if you become incapacitated. Conservatorship, on the other hand, is always court-ordered. This means that it can take some time to get set up, and it may be more expensive than setting up a power of attorney. When it comes to making financial decisions, both can be used.
However, a conservatorship is generally used when someone is unable to make financial decisions for themselves, while power of attorney can be used even if the person is still capable of making their own decisions. For example, you might use a power of attorney to give your spouse the authority to handle your finances if you are going on an extended trip and will be unavailable. Or, you might set up a conservatorship if you become incapacitated and can no longer manage your finances.
Types Of Conservatorship
There are also a few different types of conservatorship: limited and plenary.
A limited conservatorship is a legal arrangement that gives someone else the authority to make decisions on your behalf if you become incapacitated.
A plenary conservatorship is a legal arrangement that gives someone else the authority to make decisions on your behalf if you are unable to make decisions for yourself.
What Are The Duties Of A Conservator?
The responsibilities of a conservator are determined by the terms of the conservatorship as well as the requirements of the principal. In general, however, the conservator will be in charge of making decisions on behalf on the principal such as housing, medical treatment, and finances. The conservator will also be responsible for keeping track of all actions taken on.
What Are The Duties Of An Agent Under A Power Of Attorney?
As the holder of a power of attorney, you are responsible for carrying out the specific duties and tasks delegated to you by the principal. These duties can vary depending on the type of power of attorney and the wishes of the principal, but may include managing finances, paying bills, handling real estate transactions, or making medical decisions on behalf of the principal. It is important to keep in mind that you are acting as a fiduciary, which means you must always act in the best interests of the principal and not for your own personal gain. If you breach this duty, you can be held liable for any losses suffered by the principal.
The Cost Of Setting Up For An Attorney Vs Conservatorship
The cost of setting up a power of attorney is generally less expensive than the cost of setting up a conservatorship.
This is because a power of attorney can be set up without going through the court system, while a conservatorship must be set up through the court system.
Additionally, the cost of setting up a power of attorney will vary depending on the type of power of attorney you set up.
For example, if you set up a durable power of attorney, you may have to pay for an attorney to draw up the document. Or, if you set up a non-durable power of attorney, you may not have to pay for an attorney.
The cost of setting up a conservatorship will also vary depending on the type of conservatorship you set up.
For example, if you set up a limited conservatorship, you may only have to pay the filing fee. Or, if you set up a plenary conservatorship, you may have to pay for an attorney and the cost of setting up the conservatorship will be more expensive.
Who Can Override A Power Of Attorney?
There are a few circumstances in which someone may override a power of attorney. For example, if the principal (the person who granted the power of attorney) becomes incapacitated, the court may appoint a guardian or conservator who will have authority to make decisions on the principal’s behalf.
In addition, if the agent (the person appointed to act under the power of attorney) is not acting in the best interests of the principal, a court may revoke the power of attorney and appoint a different agent. Finally, if there are two agents named in the power of attorney and they disagree about how to proceed, a court may need to get involved to resolve the disagreement.
How To Choose Between Power Of Attorney And Conservatorship
When choosing between the power of attorney and conservatorship, there are a few factors to consider.
First, you need to decide whether or not the person is still capable of making their own decisions. If they are still capable of making their own decisions, then power of attorney may be the best option. If they are not capable of making their own decisions, then conservatorship may be the best option.
Second, you need to consider the cost of setting up the power of attorney or conservatorship. Power of attorney is generally less expensive than a conservatorship.
Finally, you need to decide who will be making the decisions on behalf of the person. If you want someone else to make the decisions, then power of attorney may be the best option. If you want the court to make the decision, then conservatorship may be the best option.
Conclusion
In general, power of attorney is less expensive and easier to set up than conservatorship. However, a conservatorship may be necessary if the person is unable to make their own decisions. It’s important to talk to an attorney to determine which option is best for your situation.
