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This article is the sixth in a series of articles designed to educate and inform the reader on the general concepts of conservatorships, when they may be necessary, and the considerations made by the court in establishing them. As discussed in previous installments, when a court appoints a person as a conservator, they become responsible to the court and assume duties and obligations, which stay in effect for the duration of the conservatorship, or as long as the conservator’s role as conservator remains in effect. There are certain circumstances under which a conservator’s role may end while a conservatorship continues due to resignation or removal by the court. This sixth article will focus on educating the reader on the termination of a conservator’s role.
Resignation by Conservator
In California, a conservator may resign by filing a petition for resignation with the court that appointed them. Yet, in the event that a conservator dies, resigns, or is removed by court order, a conservatorship will continue, and the conservator will be replaced. Thus, the conservator’s petition for resignation must state the reasons for resignation and the plan for transferring responsibility to a successor conservator or returning the conservatee to capacity. The conservator must then provide notice of the resignation to all interested parties, such as the conservatee and any other individuals involved in the conservatorship proceedings. Finally, the court will hold a hearing to review the resignation and ensure that the conservatee’s best interests are protected. Once the court approves the resignation, the conservator is no longer responsible for the conservatee’s affairs.
Removal of Conservator
As discussed in the previous installment of this series, the court may remove a conservator who is failing to perform the duties of a conservator or is incapable of performing them if there is evidence of wrongdoing or if it is in the best interest of the conservatee. An interested party, including the conservatee, a family member, or the court-appointed investigator, may file a petition for removal. Such a petition must include the reasons for the removal and any supporting evidence. The conservator will have the right to respond to the allegations and present their evidence at a hearing. The court may find that the conservator has engaged in wrongdoing or that their continued appointment is not in the conservatee’s best interest. In that case, the court may order their removal and appoint a successor conservator. The court may also revoke the conservator’s powers or modify the terms of the conservatorship as necessary.
Breach of Fiduciary Duty Claims
An interested party also has the option to file a claim against a conservator for breach of fiduciary duty. Generally, a breach of fiduciary duty claim can arise when a person in a position of trust and confidence, such as a trustee or conservator, fails to act in the beneficiary’s or conservatee’s best interests. A fiduciary is responsible for managing and protecting the assets and interests of the beneficiary or conservatee with the highest degree of honesty, loyalty, and care. Though executors, probate administrators, and trustees are all fiduciaries, this article will explore breach of fiduciary duty claims within the context of conservatorships.
A breach of this duty may occur when the fiduciary causes harm to the person they are serving. Harm to a conservatee may be financial harm, harm to their physical or mental health, or harm to their overall quality of life. Examples of such harm include self-dealing, misappropriation of funds, or failure to account for assets. An interested party may file a lawsuit to recover damages caused by the breach and seek to remove the conservator from their position. The court may also impose additional remedies, such as an accounting, restitution, or punitive damages if the conservator’s conduct was particularly egregious.
A notable conservatorship case that involved a breach of fiduciary duty claim against a conservator is the Britney Spears case. Before Britney Spears’s conservatorship terminated, Britney, through her attorney, filed a breach of fiduciary duty claim against her father and former conservator, Jamie Spears. The claim alleged that Mr. Spears mismanaged Britney’s finances, engaged in self-dealing, and failed to act in her best interests. Specifically, the claim alleged that Mr. Spears paid himself excessive fees, made questionable investments, and failed to disclose financial information to Britney and the court. Additionally, the claim asserted that Mr. Spears did not act in Britney’s best interests, as evidenced by her desire to terminate the conservatorship altogether. The breach of fiduciary duty claim sought to hold Mr. Spears accountable for his alleged misconduct and to remove him as conservator if necessary. The court terminated Britney Spears’s conservatorship in November 2021.
In sum, when a court appoints a conservator, they are expected to act in the best interests of the person they represent. While there are instances where a conservator resigns or is removed from a conservatorship that is to remain in effect, the court must make certain considerations before ending a conservator’s role. As fiduciaries, conservators are held to a high standard of care and must always act in good faith, with honesty, and with the utmost loyalty to the person they serve. Unfortunately, there are situations where a conservator breaches their fiduciary duty, which can have significant consequences. A breach of fiduciary duty occurs when a conservator fails to fulfill their legal obligations to the person they serve. This can include misusing funds, failing to pay bills or taxes on behalf of the individual, making decisions that are not in the person’s best interest, or failing to provide the necessary care and support.
When a breach of fiduciary duty occurs, interested parties may pursue several legal remedies. Thus, individuals and their loved ones must know their legal rights and options. By taking action to hold a conservator accountable for their actions, individuals can ensure that they receive the care and support they deserve. Additionally, because a conservator may have duties following the end of the conservatorship or their removal from the role of a conservator, it is important that a conservator consults with an attorney regarding the final discharge of their duties.
For more information regarding a conservator’s duties, enforcement of a conservatee’s rights, or other matters associated with elder and dependent adults, estate planning, power of attorney documents, and Probate Court, please call us at (805) 934-4600 to schedule an appointment.