Britney Spears Is One of a Million Adults in Conservatorships. Here's What Advisors Should Know.

An individual with dementia, for example, is able to contract with, say, a financial advisor as to supported decision-making for their financial affairs and a health care professional for their health care affairs.

What would that mean for FAs?

They would need to look at the local law. There would probably be contractual provisions that could be put in to protect them because when things go wrong, they can go real wrong.

But the idea is for people to keep their liberty, self-determination and autonomy. With a conservatorship, all that's generally lost because the conservatee loses the right to contract, marry, vote, be employed. 

It's said that convicted murderers in the local prison have far more rights than a conservatee.

What are the challenges for someone who wants to end a conservatorship, like Britney Spears says she does?

Conservatorships are secret. A lot of people in a conservatorship can't escape them.

[When they try] in a restoration proceeding, [attorneys] can't look at the court records to see what the court has allowed and not allowed.

This is Britney Spears' effort — to get her rights and freedom back as a citizen. You can see why in a case like hers, a supported decision-making arrangement [would be appropriate].

She could have her own financial advisor and her own health advisor. But California [where her case is being litigated] has no statute on supportive decision-making.

In the Spears case, Bessemer Trust, the financial co-conservator with her father, Jamie Spears, asked to resign. Please discuss.

I can see why they wanted to resign. They probably don't like their name in the news for alleged abuse against a conservatee, particularly a really famous conservatee.

I would think that the court will let them resign, with some conditions.

Why are conservatorships so commonplace and hard to get out of?

In general, the courts should consider the least restrictive alternative because conservatorships take people's freedom and autonomy away. But [less restrictive alternatives] are given short shrift in the annual review of conservatorships. 

The American Bar Association says that annually, there ought to be at least consideration of a less restrictive alternative so that the conservatorship can be dissolved or unwound. But that's not being considered as part of the review.

Recently released was a TV documentary series, "The Price of Care," about the California conservatorship system, and for which you were interviewed. Why is it controversial?

There's an industry around conservatorships: for-profit conservators. And it's a major problem. 

For example, California has about 1,200 for-profit fiduciaries who might be serving as conservators. They are lightly regulated; the oversight is very, very poor.

The Legislature is looking at changing the rules, but it hasn't happened yet. You see runaway fiduciaries. This is part of the court system for conservators. It's really incestuous.

And who's paying the fiduciary, the fiduciary's lawyer, their subcontractors [et al.]? The conservatee.

All's well until the money runs out. At that point, the [paid] professional conservator isn't going to stay. So the court will appoint a public guardian, who [likely] will get paid with taxpayer money.

How bad can the looting get?

I've seen some atrocious situations that start with a lot of money; but by the time the conservator, their lawyers, their advisors [et al.] are paid, homes get sold because whoever has been chosen to provide care for the conservatee may be really expensive.

I'm not saying that 100% of conservatorships go wrong, but I don't think our laws have caught up with the reality.

What's blocking the reform?

When legislative changes are proposed, the for-profit conservatorship organizations fight upgrading the laws to reflect the reality that our citizens should have better protections.

Do they do that because they're getting paid high fees?

Yes. It's that simple. I understand that people have to make a living, but we need to assess the policies.

Are conservatorships overused?

I'm in a field that deals with elders. I see the sad cases — the dementia, Alzheimer's. About 6.5 million people have Alzheimer's.

I deal with clients who I think may have it but maybe aren't diagnosed with it. So they're in need of help, and some are going to be in need of a conservatorship.

But probably a smaller percentage of these clients can be helped by a trusted contact or family member. 

(Pictured: Michael Hackard)