Arizona Conservatorship Statute: Duties, Bond, and Court Approval

An Arizona conservatorship is a court-supervised arrangement in which a judge appoints someone to manage another person’s finances and property because that person cannot manage them alone. The appointed conservator handles bank accounts, investments, real estate, bills, and legal claims for the “protected person,” and answers to the court while doing it. Arizona treats this as a financial role only. A separate proceeding, guardianship, covers medical care, housing, and personal welfare. One person can hold both appointments, but each is a distinct legal authority with its own findings and paperwork, so a conservatorship by itself gives you no say over where the protected person lives or what treatment they receive.¹

When a Court Will Appoint a Conservator

For an adult, the court must find two things by clear and convincing evidence. The person must be unable to manage their finances effectively because of a condition like mental illness, physical disability, or chronic drug or alcohol use. And the estate must be at risk of waste or loss without proper management, or funds must be needed for the person’s support and care.² Clear and convincing is a high standard on purpose. A general concern that a relative is bad with money is not enough.

Unless the person is missing or detained, they must appear before the court in person or by virtual means before an appointment can be made. If they cannot or will not appear, that has to be shown to the court and reflected in the record.² The person whose finances are at issue has the right to an attorney, to present evidence, and to cross-examine witnesses, including any examiner the court appoints.³

Minors can also have conservators, usually because they own property that needs management. The standard is lower: the court only has to find that the minor owns money or property that needs managing, or that funds are needed for the child’s support and education.²

What a Conservator Can Do Without Going Back to Court

Arizona gives conservators broad day-to-day authority so the estate is not paralyzed by procedural delays. The statute uses a framework similar to what trustees operate under, letting the conservator invest and reinvest estate funds using their own judgment.⁴

Real estate is included. A conservator can buy, sell, lease, repair, improve, and even demolish property, in Arizona or another state. Leases can run beyond the life of the conservatorship itself.⁴

If the protected person owns a business or holds securities, the conservator can keep the business running or participate in its management, vote the shares, pay assessments, and consent to corporate events like mergers or dissolutions.⁴

Conservators can also hire attorneys, auditors, investment advisors, and administrative agents, including professionals personally connected to the conservator, and can rely on those professionals’ recommendations without conducting an independent investigation. Hiring someone does not shift the responsibility, though. The conservator remains accountable for the outcome.⁴

On the litigation side, a conservator can file lawsuits, defend claims, and settle disputes on behalf of the estate using compromise, arbitration, or other methods, and can release claims to the extent they are uncollectible.⁴

Routine spending for the protected person’s support, education, care, and benefit also does not require court sign-off for each check. But the conservator has to weigh the size of the estate, how long the conservatorship is likely to last, whether the person might regain the ability to manage their own affairs, and their accustomed standard of living before spending.⁵

What Still Requires Court Approval

Some transactions are significant enough that the conservator has to get court permission first. The clearest example is compromising a personal injury or wrongful death claim. A conservator cannot settle these claims without court approval and must show that any settlement or release of the party at fault is in the protected person’s best interest.⁴

When the court does approve a personal injury compromise, it decides how the settlement is structured. It can defer some or all payments until a minor reaches adulthood and can approve structured settlements or trusts on terms it finds appropriate.⁴ A conservator cannot set up a structured settlement or protective trust unilaterally.

The court can also require prior approval for other kinds of transactions on a case-by-case basis if it has concerns about a particular conservator or estate.

Fiduciary Duty and Self-Dealing

Arizona holds conservators to the highest level of fiduciary responsibility and requires them to act with intelligence, prudence, and diligence, and to avoid self-interest.¹

The statute does include some narrow permissions that sit awkwardly with that duty. A conservator can retain estate assets in which they are personally interested and can deposit estate funds in a financial institution the conservator operates.⁴ Those specific allowances exist, but they get judged against the overall fiduciary standard. Using them requires being able to show the choice served the protected person, not the conservator.

On support payments, if a parent or guardian has been appointed and recommends a level of support, the conservator generally will not be surcharged (held personally liable) for following those recommendations, unless the conservator knew the parent or guardian was benefiting personally or that the recommendation would harm the protected person.⁵

Bond, Inventory, and Annual Accounting

Before taking control of the estate, a conservator generally has to post a surety bond. If the conservator mishandles the estate, the bond reimburses the losses. The court sets the amount based on the value of the property under the conservator’s control plus one year of estimated income, minus the value of securities held under court-controlled arrangements and land the conservator lacks power to sell without court authorization. National banks and trust companies serving as conservators are exempt from bonding.

Within 90 days of appointment, the conservator has to file an inventory of every asset the protected person owned on the appointment date, with a fair market value for each item, along with a copy of the protected person’s consumer credit report dated within 90 days of filing.⁶

After that, annual accountings are filed with the court showing how the estate has been managed. The court can order a physical check of estate assets at any time.⁷ Interested parties entitled to notice of the annual account can also ask to see the protected person’s financial records, the conservator’s billing statements, and the conservator’s attorney billing statements. Requests can be made up to once every 30 days, and the conservator has 30 days to respond.⁶ Family members who are worried about how the estate is being handled do not have to wait a year for an accounting; they can demand records monthly.

Replacing a Conservator

If the arrangement is not working, the protected person or any interested party can petition to substitute a new conservator. The court grants the substitution if it finds the change is in the protected person’s best interest, and it does not have to find that the current conservator did anything wrong.⁸

There is one timing limit. Anyone other than the conservator or the protected person cannot file to substitute within the first year after the protective order, unless sworn statements show the current conservator will endanger the estate if not replaced sooner.⁸

Ending a Conservatorship

The protected person, the conservator, or any interested person can petition to terminate the conservatorship. A protected person seeking termination is entitled to the same procedural rights as in the original appointment: counsel, evidence, cross-examination of witnesses.⁹

After a hearing, the court must terminate the conservatorship if the disability or minority has ended. For a minor, that generally means turning 18, unless the court has continued the conservatorship under the adult standard. For an adult, it means showing that the conditions justifying the original appointment are no longer present.⁹

A final accounting is required to close things out. If the protected person has died, the court can approve a simplified final account in the form of a verified statement rather than a full formal accounting.⁷ Once the final account is approved, it settles the remaining liabilities between the conservator and the protected person or their successors.

1
New York Codes, Rules and Regulations. ACJA Section 7-202 – Fiduciaries
2
Arizona Legislature. Arizona Revised Statutes 14-5401 – Protective Proceedings
3
Arizona Legislature. Arizona Code 14-5407 – Procedure Concerning Hearing and Order on Original Petition
4
Arizona Legislature. Arizona Code 14-5424 – Powers of Conservator in Administration
5
Arizona Legislature. Arizona Code 14-5425 – Conservator Duties and Powers Regarding Support and Distribution
6
Arizona Legislature. Arizona Code 14-5418 – Inventory and Records
7
Arizona Legislature. Arizona Code 14-5419 – Accounts
8
Arizona Legislature. Arizona Code 14-5415 – Resignation or Substitution of Conservator
9
Arizona Legislature. Arizona Code 14-5430 – Termination of Proceeding