In Mississippi, there are two types of conservatorships. The first type is for adults who can no longer manage their affairs. The second type is for children who own money or property. In this post, we will discuss our fees for both types of conservatorships.
In the case of children, a conservatorship is most commonly required because a child inherits money or property. Another common reason is when a child receives a personal-injury settlement. In Mississippi, a child is considered a minor until turning 21 years old. The law recognizes that most minors under 21 are not responsible enough to manage a substantial amount of money. So a conservatorship may be required to manage the money of a child who is under the age of 21.
In the case of adults, a conservatorship is only proper if the adult cannot manage his or her own affairs. Usually the reason is when elderly people develop a mental condition that renders them incompetent.
The conservator is the person appointed by the court to manage the money or property of the child or incompetent adult. Usually the conservator is a close family member of the person needing the conservatorship. The conservator is a fiduciary and must manage the money in compliance with court orders. The money belongs to the child or incompetent adult – known as the ward. The conservator simply manages or uses the money in a way approved by the court for the ward’s benefit.
Essentially the same process applies to both types of conservatorships. The proposed conservator files a petition requesting to be appointed as the conservator. Notice of the filing must be given to all necessary parties. The court holds a hearing on the request. For an adult conservatorship, two doctors or nurse practitioners must sign certificates attesting to the ward’s incompetency. For a child, this step does not apply. After the judge approves the conservatorship, the conservator files an oath, and the clerk issues Letters of Conservatorship, which is the document that puts the conservator in charge. After appointment, the court may require a bond, inventory, accounting, and a conservator’s plan. Often, however, some or all of these requirements are waived by the judge. Our firm prepares the paperwork for each of these steps.
The court will often require the ward’s funds to be placed in an interest-bearing FDIC insured restricted account. “Restricted” means there can be no withdrawals. Sometimes the court will allow the funds to be invested in a restricted brokerage account. And sometimes the court will allow the ward’s funds to be used for necessary expenses, but court approval is required.
Setting up a conservatorship for a minor is less expensive than for an adult. The reason for this is more work is required for the latter. For an uncontested conservatorship for a minor, we generally charge a flat fee of $2,500 to $3,000. If the entire fee is paid up front, we will discount the fee by 10% (reducing the fee by $250-$300). If you prefer, you can pay the fee in two equal payments. If you choose this method, the first payment would be due at the start, with the second due before the court hearing. If requested, the court can approve full reimbursement of the attorney’s fees from the conservatorship funds. This is not guaranteed, but usually is approved.
The process to set up a conservatorship usually does not take very long. Generally, we can obtain a court order establishing a conservatorship within 3 or 4 months. In rare cases, it can take up to 6 months.
For an uncontested adult conservatorship, we normally charge a flat fee of $3,500 to $4,000. If the entire fee is paid up front, we will discount it by 10% (reducing the fee by $350 or $400). Or the fee can be paid in two equal installments if that is your preference. Again, the court can approve full reimbursement of the attorney’s fees from the conservatorship funds. This is not guaranteed but usually is granted.
We hope you have found this post helpful. To talk to an experienced attorney about your conservatorship matter, please call us at (601) 827-3031 or email us using the contact link on our website.
Nothing in this post constitutes legal advice. This post is for informational purposes only.