Conservatorship is a court-supervised legal arrangement in which a judge appoints a person or institution"the conservator"to manage the financial affairs and/or personal care of an individual who is no longer able to do so competently. Conservatorships can cover property management, medical decisions, or both, depending on state law and court orders. They are often used for adults with advanced cognitive impairment, severe mental illness, or other conditions that impair decision-making. While conservatorship protects vulnerable individuals from exploitation and self-neglect, it also limits personal autonomy and requires ongoing reporting to the court regarding finances and major decisions.

Advisors encounter conservatorships when clients or their family members can no longer handle complex financial decisions. Account titling, beneficiary changes, and insurance transactions must then be authorized by the conservator, often with court approval for major actions. Advisors request copies of court orders to confirm the scope of authority and keep compliance teams informed. Conservatorship may complicate annuity suitability reviews, policy loans, or replacements because the protected person cannot consent directly. Understanding conservatorship helps advisors recognize when they must slow down, involve legal counsel, and document extra care in working with vulnerable clients and their court-appointed representatives.