Oregon Conservatorship: What Happens When There Is No Power of Attorney
Most people think estate planning is about what happens after death.
But some of the most expensive legal problems happen while a person is still alive.
If someone becomes incapacitated and does not have a valid power of attorney in place, the family may have no choice but to go to court. In Oregon, that court process is called a conservatorship or guardianship.
This is exactly the situation good planning is meant to avoid.
What Is a Conservatorship in Oregon?
A conservatorship is a court-supervised arrangement in which a judge appoints someone to manage the financial affairs of an incapacitated person.
The person needing protection is called the “protected person.”
A conservator may have authority over:
Bank accounts
Investment accounts
Real estate
Business interests
Bill payment
Government benefits
Contract decisions
A conservator does not simply act for the family. The conservator answers to the court.
What Is a Guardianship?
Guardianship is related but different.
A guardian makes personal and medical decisions for someone who cannot do so independently.
That may include decisions about:
Housing and living arrangements
Medical treatment
Care facilities
Daily support services
In many cases, a person may need:
A conservator only
A guardian only
Or both
The two roles are legally distinct but often arise together.
When Does Conservatorship Become Necessary?
Conservatorship usually becomes necessary when:
A person is incapacitated
No valid power of attorney exists
Financial institutions refuse to honor outdated documents
Family members disagree about authority
Significant assets are involved
Common medical triggers include:
Advanced dementia
Severe stroke
Traumatic brain injury
Serious mental illness
Progressive cognitive decline
Without a power of attorney, even a spouse has no automatic authority to access accounts titled solely in the incapacitated person’s name.
How the Process Works in Oregon
The conservatorship process requires filing a petition in probate court.
The court will then:
Appoint a court visitor or investigator
Notify close family members
Require medical evidence of incapacity
Hold a hearing
Determine whether a conservatorship is necessary
If appointed, the conservator must:
Often post a bond
File a detailed inventory of assets
Submit annual accountings
Seek court approval for certain major transactions
This becomes a public court matter.
The Financial and Administrative Burden
Conservatorship can involve:
Attorney fees
Court filing fees
Bond premiums
Ongoing accounting costs
Court supervision for years
There are also practical delays. If bills must be paid or urgent financial decisions made, the family may have to wait for court authority before acting.
It is also emotionally difficult. The court must make a formal finding that the person lacks capacity.
Why a Durable Power of Attorney Changes Everything
A properly drafted durable financial power of attorney allows a chosen agent to act without court involvement.
With a valid power of attorney:
No petition is required
No public record is created
No annual reporting to the court is required
Authority can begin immediately
The transition is faster, less expensive, and more private.
This is why durable powers of attorney are foundational in Oregon estate planning.
When Court May Still Be Required
Even with documents in place, court involvement may still become necessary if:
The power of attorney is outdated
The named agent is unavailable
Family members challenge the agent’s authority
Financial institutions refuse acceptance
The agent is suspected of misconduct
But these situations are far less common when documents are current and properly drafted.
A Common Real-World Scenario
Consider this situation:
A parent develops dementia
No power of attorney exists
One adult child lives nearby
Another lives out of state and disagrees with decisions
The nearby child cannot access bank accounts. Bills go unpaid. The distant sibling objects.
The only solution becomes court.
Thousands of dollars and months of delay could have been avoided with one properly signed document.
How to Avoid Conservatorship
Avoiding conservatorship requires proactive planning:
Execute a durable financial power of attorney
Keep it updated every few years
Choose a competent and trustworthy agent
Name at least one backup
Include authority over real estate, retirement accounts, and digital assets
This document is not glamorous. But it is one of the most powerful tools in an estate plan.
The Bottom Line
Conservatorship exists to protect vulnerable individuals.
But it should be a last resort, not a default plan.
If you do not have a current durable power of attorney, or if yours is outdated, it is worth reviewing.
At Track Town Law, durable powers of attorney are included in every comprehensive estate plan under our flat-fee pricing structure.
To schedule a free consultation, visit:
https://www.tracktownlaw.com/book-now
To review flat-fee estate planning options, visit:
https://www.tracktownlaw.com/pricing
Court supervision is sometimes necessary. With proper planning, it is often avoidable.
