Founding Attorney
A guardian does not automatically control an adult’s finances in Minnesota. Financial decisions are generally made by the adult, an authorized agent, or a court-appointed conservator, depending on the person’s abilities and the terms of any court order.
If your family member needs help with personal care and money management, who has the authority to make each decision? Understanding the difference between guardianship and conservatorship can help you pursue the appropriate arrangement and avoid acting beyond the authority the court grants.
What Is the Difference Between a Guardian and a Conservator in Minnesota?
A guardian generally makes decisions involving the personal well-being of an adult whom the court has found to be incapacitated. Depending on the court order, those responsibilities may include decisions about health care, housing, education, and support services.
A conservator manages the protected person’s money and property. The same person may serve as both guardian and conservator, but these remain separate legal roles. A family seeking both types of authority generally must ask the court for guardianship and conservatorship.
Minnesota courts are required to grant a guardian or conservator only the authority needed to address the person’s demonstrated needs. The adult retains all rights that are not restricted by law or specifically limited in the court order. As a result, you should review the order closely rather than assume that an appointment provides complete decision-making control.
When Does an Adult Need a Conservator?
A conservator may be appropriate when an adult cannot manage property and financial affairs safely, and their assets could be wasted or lost without assistance. The court must also consider whether the person’s needs could be met through a less restrictive option.
A conservator may be needed to:
- Pay housing, medical, and household bills
- Collect income and other money owed to the adult
- Manage bank accounts, investments, and real estate
- Protect property from loss, misuse, or financial exploitation
- Address taxes, insurance, and other ongoing obligations
Guardianship and conservatorship do not always have to be established together. An adult may need help with medical and residential decisions while remaining capable of managing money. Another person may need financial protection but little or no assistance with personal decisions.
Alternatives may also be available. A valid financial power of attorney, trust, representative payee arrangement, or other support could reduce or eliminate the need for conservatorship, depending on the circumstances.
Can a Guardian Handle Any Financial Matters?
A guardian’s primary role concerns personal care, but Minnesota law permits some limited actions that touch on finances. For example, when no conservator is serving, a guardian may apply for government assistance, services, or benefits on the adult’s behalf. A guardian may also approve or withhold approval of certain contracts and take reasonable care of the person’s clothing, furniture, vehicles, and other personal effects.
These limited powers do not generally authorize a guardian to take control of bank accounts, manage investments, or sell major assets. If additional property needs protection, the guardian may need to seek the appointment of a conservator. The exact boundaries depend on Minnesota law and the court’s order.
What Responsibilities Does a Conservator Have?
A conservator is a fiduciary, meaning the conservator must act in the protected person’s interests rather than use the position for personal benefit. The conservator must manage the estate carefully, keep the protected person’s funds separate, and maintain accurate records.
Conservators are also subject to court oversight. They generally must prepare an inventory of the protected person’s estate and submit periodic accountings showing income, expenses, assets, and transactions. Certain actions may require advance court approval.
Whenever possible, the protected person should remain involved in financial decisions. Conservatorship should preserve the person’s independence and decision-making authority to the extent their abilities allow.
Get the Right Legal Authority to Help Your Family Member
Questions about finances often arise when a family is already trying to arrange care for a vulnerable adult. Choosing the wrong proceeding or misunderstanding a court order can delay important decisions.
Unique Estate Law helps Minnesota families evaluate guardianship, conservatorship, and less restrictive alternatives. We can prepare the necessary court filings, explain the responsibilities involved, and guide you through the proceeding. Contact us to discuss what type of legal authority may be appropriate for your family member.