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Minor’s Conservatorship: Not Your Personal Bank
Practical guidance for families, caregivers, and conservators in Georgia
When a minor inherits significant funds whether from a loved one’s estate, a personal injury settlement, life insurance benefits, or other sources. The Probate Court may require a conservatorship to manage those assets until the minor reaches adulthood. Although these funds are intended to support the child’s future, there are important legal limitations on how they can be used.
What is a Conservatorship?
A conservatorship is a court-supervised fiduciary relationship in which an appointed adult (the conservator) manages and protects a minor’s property and funds. The conservator must always act in the minor’s best interest with care, diligence, and prudence.
In Georgia, under OCGA § 29‑3‑21, a conservator’s duties include:
Receiving, collecting, and managing the minor’s property;
Providing for the minor’s care, support, education, health, and welfare within available resources;
Filing inventories and annual financial reports with the Probate Court;
Acting as a fiduciary at all times.
When a Conservatorship Is Required?
In Georgia, under OCGA § 29‑3‑21, a conservatorship is typically required when the minor is set to receive or already holds assets exceeding certain thresholds (often around $15,000–$25,000 depending on local rules).
Without a court-appointed conservator, even a parent may not legally receive or manage money for the minor beyond statutory exemptions.
Understanding the Purpose of Conservatorship Funds
Funds held in conservatorship are not a personal bank account for the conservator. They are entrusted to the conservator for the minor’s benefit, now and in the future. The Probate Court supervises how those funds are spent or preserved.
The court’s goal is to protect the minor’s financial future, not to subsidize family members' everyday living expenses, even if they are caring for the child.
Court Approval Is Often Required
Conservators generally must obtain court approval before using funds for expenses that are not clearly tied to the minor’s benefit.
Examples of common requests:
Approved:
Educational costs, medical bills, or extraordinary needs directly benefiting the minor.Potentially approved:
Funeral or burial expenses (court discretion applies).Typically denied:
Requests for rent, utilities, groceries, car payments, vacations, or other personal expenses for the conservator or family members.
Note: The court has broad discretion to grant or deny access to funds even if statutes do not expressly authorize a particular expense.
What Conservators Should NOT Do with Minor Funds
To avoid legal consequences, conservators should never use the minor’s funds for:
Paying their own rent or household utilities.
Covering groceries or daily living expenses for themselves or their family.
Purchasing personal luxury items (cars, trips, electronics, clothing).
Funding personal debts or loan repayments.
Making gifts to friends, relatives, or acquaintances.
Treating the funds as a substitute for their own income or employment.
Misusing funds can lead to: removal as conservator, repayment obligations, and potential legal penalties.
Guardians vs. Conservators
Guardians (of the person): Focus on the minor's personal care (housing, schooling, medical decisions).
Conservators (of the estate): Focus on managing the minor’s financial matters.
A single person can serve in both roles, but the duties and legal obligations differ. Annual accountings and strict court oversight are required.
Key Takeaways for Conservators and Families
Know the Purpose:
Funds are held for the minor’s benefit, not as a lifestyle subsidy for caregivers.Court Approval Matters:
Always consult the Probate Court before spending conservatorship money on anything beyond routine, clearly justified expenses.Keep Accurate Records:
Conservators must file inventories and annual accountings and be prepared for court oversight.Avoid Misuse:
Never treat conservatorship funds as personal income, salary, or wages.Consult a Probate Attorney:
Judges have broad discretion; legal guidance ensures the best outcome for the minor.
Final Thoughts
Conservatorships exist to protect a minor’s financial future, not to subsidize adult caregivers.
Acting responsibly may not always feel popular with the family, but it ensures the child’s best interests are served. Think of it as being a parent in the legal space, making tough decisions now for the child’s long-term security.
If you’re a conservator or planning for a minor’s inheritance, consult with Thompson Mungo Firm to ensure funds are managed correctly and the minor’s financial future is protected.