Many time the elderly or disabled find themselves in a situation where they are in need of assistance from a love one. Often it may be help with their physical activities but other times it may be assistance with business affairs. The two basic options to help with business affairs is a conservatorship or a power of attorney. Power of attorney and a conservatorship are very similar but they are very different as well.
A conservatorship is a process where the court appoint a person (a conservator) to assist an incapacitated person with their business affairs. After a conservator is appointed the conservatee can no longer legally bind herself. In a conservatorship the Court appoints a conservator to assist the conservatee in doing so the Judge must determine that conservatee can not manage his affairs
A Power of Attorney is legal process which an individual give authorization to another person to act on their behalf in a legal or business matter. The person to whom you give these powers is called an “agent” or “attorney-in-fact.” The person granting the power of attorney is called the “principal.” The principal can still make decision on his own behalf but another make act on his behalf as well.
One of these two options will assist in any situation where there is a need to have someone act on your behalf. But is important that your choose the one that best for your circumstance. Before make an decision you should always consult with an attorney.
The primary difference between a Power of Attorney and conservatorship is court involvement. A conservatorship impose fiduciary relationships between the conservatee and conservator. The court authorizes an individual to act as conservator of another.
Learn more about How to Setup a Conservatorship for Elderly Parents.