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When should I begin keeping records?
To effectively serve as conservator, there is a burden of paperwork. You should begin immediately upon your appointment.
What kind of records should I keep?
Begin to make a list of the property owned by the individual which will be under your control. The list should be detailed, with a description of each item sufficient to easily identify it.
The list can protect you down the road, and it will also help in putting together the inventory.
What other records will I need?
Set up a log to record the date, amount and source of all income received by the individual, including employment, pension, interest, dividends, tax rebates and health insurance reimbursement; and any sale of an asset.
Set up a log to record the date, amount and reason for all expenditures you make using the individual's money. You can choose to set this up as a daily log, or have separate pages for different categories of expense, such as
-foodMaintain a checkbook, and keep it balanced.-clothing
-shelter, including utility bill
-health and dental care
-insurance, including health, homeowners, automobile
-other
In a folder or file box, collect all bills, receipts, bank statements, and cancelled checks relating to expenditures. Keep these separate from your own personal records.
The better these records, the easier it will be for you to complete your annual account and any tax returns. These records can also protect you against charges of wrongdoing.
Are these financial records open to inspection?
The law requires you exhibit records upon the request of an interested person.
Should I create other files?
Yes. You should have a file with all copies of all court papers relating to the conservatorship, including petition, letters of conservatorship, inventory, annual accounts.
You should also have a file with other important legal papers, such as automobile title, life and health insurance policies, deeds, property appraisals, warranties on consumer goods. You might consider renting a safe deposit box for these items.
You might have an additional file for all correspondence received or sent regarding the conservatorship, for example, notices from Social Security Administration, medical insurance claims.
Must I keep track of the time I spend on conservatorship duties?
If you plan to charge for your services, it may be helpful to keep a record of your time. You should show what task or tasks you performed during each time period.
How long do I need to keep old records?
Keep all records for at least three years.
Must I have a lawyer?
There is no requirement you have a lawyer to represent you in establishing the conservatorship or to advise you after you are appointed conservator.
Can I hire a lawyer to advise me as conservator?
Yes.
Am I personally responsible for the cost of the lawyer?
No. You pay the lawyer using funds of the individual.
How do I find a good lawyer?
There is no sure-fire way. Here are some suggestions:
1. If you have dealt with a lawyer in the past and were satisfied, go back to that person. If he or she does not handle probate court matters, she or he can recommend someone who does.
2. Ask friends, neighbors or relatives for someone with whom they have been pleased.
3. Call the county or state bar referral service, which will provide you with the names of one or more lawyers who deal with probate court matters.
4. Consult the yellow pages or newspaper classified section.If I decide upon a lawyer, what then?
Make sure you understand how much the lawyer will charge for her or his services, and what costs are not included in the hourly charge. Court rules require the lawyer to have a written fee agreement with you, to send a copy of the agreement to interested parties and to file a notice with the probate court.
When should I consult with the lawyer?
A lawyer could help you establish the conservatorship. If you later have questions about your responsibilities, the extent of your powers, or the individual's rights, do not hesitate to contact your lawyer for advice.
Do I have a right to receive itemized bills from the lawyer?
Court rules require the lawyer's bill to include a brief description of each service, who performed it, the date it was performed and the amount of time each service took.
Do not pay any bill for legal services unless it complies with the court rule and the written fee agreement.
Are the lawyer's fees subject to probate court approval?
Yes.
What if I am appointed as conservator and I am a lawyer?
You should notify interested persons of the fees you intend to charge for attorney services.
You must keep two detailed sets of time records: one for conservatorship services and one for attorney services. Both your legal fees and your conservatorship fees are subject to court approval.
Upon being appointed conservator, do I automatically become representative payee?
No. You must apply at the local Social Security Office.
Must I become representative payee?
If the individual receives either Social Security or SSI checks at home, apply at the nearest Social Security office to become representative payee. Bring a copy of the petition for conservatorship and your letters of authority.
In the near future, all Social Security checks will be electronically transferred through direct deposit to a bank or other financial institution. If there is direct deposit, it may not always be necessary to become representative payee.
Might I be turned down as representative payee?
If you have been appointed conservator, it is not likely you would be turned down as representative payee.
What will happen if I am appointed representative payee?
Upon your appointment, the monthly checks will come directly to you, or you can arrange for direct deposit into the conservatorship bank account.
How long will it be between the time I apply and the time the checks come in my name as representative?
It will likely be a few months.
What are my obligations as representative payee?
You must use the funds for the present needs of the individual. If there is extra money, then save the remainder for future needs.
For the funds you receive as representative payee, you will have to file an annual report with the Social Security Administration. More information is available in A Guide for Representative Payees, available from your local Social Security Office.
What if the individual receives Veterans Benefits?
Through the Veterans Administration, a person can become custodian of pension or disability funds of an individual. A VA field representative visits to determine whether you are appropriate to be custodian. The representative can conduct periodic reviews of your performance, eliciting information about how money was spent, your visits, and any medical treatment the individual received.
After being appointed as conservator, contact the nearest Veterans Administration office if the individual receives or may be eligible for Veterans benefits. They will ask you to send a copy of the court order appointing you conservator.
As custodian, you must inform the VA if the individual goes into a VA hospital.
Must I set up an account as conservator?
Yes. You may not use your own personal account to deposit funds belonging to the individual.
When should I set up a bank account?
Set up an account as soon as possible after you receive your letters of authority.
How should I choose a bank or credit union?
You may go to the bank the individual has used in the past, your own bank, or another. In choosing a bank, consider convenience, interest rates, service charges, and reputation for service.
What information will the bank need?
The bank will want to see, and perhaps keep, a certified copy of your letters of authority. The bank will need proof of your identity, such as a driver's license, and the social security number of the individual.
What type of account should I set up?
You will need a checking account. Use the individual's social security number. Do not create a joint account. The account name should read,
Individual's Name by: Conservator's Name
CONSERVATOR
How much money should I keep in the checking account?
Generally, you would deposit monthly income into this account. Keep enough money in the account for month-to-month needs of the individual.
Will I need to set up a savings account or certificates of deposit in addition to the checking account?
Depending on the extent of assets and other investment opportunities, you may also want to establish a savings account or certificates of deposit. You should not put large amounts in a savings account which pays minimal interest. Each account title must reflect your name as conservator.
What about present certificates of deposit?
Check with the bank about the bank waiving any early withdrawal penalty should you withdraw the funds or transfer funds to a certificate in your name as conservator.
What if the court order provides for a restricted account?
The court may require funds kept in a savings account or certificate of deposit be restricted. The bank completes a form indicating the account or accounts that are restricted. You return this form to the probate court.
Restricted Account AgreementTop of Page
Can the individual himself or herself take money out of the conservatorship accounts?
The individual is not supposed to have access, but a bank may not have a foolproof system. Make sure the bank flags the account on its computer to minimize the possibility of error.
Should I close the individual's existing account?
The court order establishing the conservatorship may provide the individual have direct access to part of his or her funds. The existing account or a new account could be used for this purpose. If you set up a new account, close the old one.
Can I give the individual control of some of her or his money if the court order is silent on this issue?
Yes. One responsibility of a conservator is to encourage self-reliance. If possible, the individual should be permitted to handle some amount of his or her money.
How much should I leave or put into this other account?
If the amount is not specified in court order, you might transfer a sum into the account each week or each month. The amount is your choice, and depends on the ability of the individual and the size of the estate.
What if the individual's present bank account is a joint account?
If the joint account is between the individual and his or spouse, you may be able to simply leave the account as it is.
What if the joint account is not between spouses?
A joint account may have been established because more than one person contributes to the account. Or the account may have been set up for the convenience of one person, or for estate planning purposes.
If you determine funds have been contributed by more than one party to the account, request the court determine what share belongs to whom.
If the account is joint only for convenience - for instance, to allow a second party access to pay bills - seek court approval to withdraw all funds and close the account. If you are the other person on the account, simply switch the funds to a new conservatorship account.
What if the joint account was set up for estate planning purposes?
A joint owner owns the entire account upon the death of the other joint owner. If the individual set up the joint account partly or exclusively for estate planning purposes, recognize your responsibility to honor the individual's estate plan to the extent possible.
You might be able to convert the account to a trust account with the former joint tenant as beneficiary, though it would be best to petition the court for authority before taking. any action.
How do I petition the court for authority?
Complete the petition and file it with the court. There is a $20 filing fee, payable from the assets of the individual. The court will set a hearing date.
You must send a copy of the notice of hearing and the petition to the individual and to all interested parties at least 14 days before the hearing.
Form PC 586 Petition and Order for AuthorityTop of PageForm PC 562 Notice of Hearing
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Last Updated 1-1-04
Send your comments, questions and suggestions to Phil Harter at 161
E Michigan Avenue, Battle Creek, Michigan 49014 or
e mail to pharter@calhouncountymi.gov