Alternative to Conservatorship

IF YOU ARE CURRENTLY WORKING IN A CONSERVATORSHIP, OR FACING THE POSSIBILITY OF WORKING IN A CONSERVATORSHIP, CONSIDER PROPOSING INSTEAD AN IRREVOCABLE TRUST WITH A CORPORATE TRUSTEE.

Anytime a minor is given funds, there is a legal requirement that a protection mechanism must be in place to handle the funds of the minor.  The default arrangement is a conservatorship, which is a court supervised account for the child.  

Normally, conservatorships are invested in such a way as to provide security of the funds, with very little return.  Also, it is common for the expenditures under a conservatorship to be very limited, often simply due to the mechanics of seeking court approvals for disbursements and the necessity of preparing court accountings.  Most parents or guardians would prefer some other arrangement, if possible.

At Providence First Trust Company, we have successfully used outside counsel to petition for the establishment of an irrevocable trust, using Providence First as corporate trustee of the trust, in place of a conservatorship for minor children.  This gives immediate flexibility in investments, prompter distributions, and more personal service for the children and their guardian.

Providence First has worked with minor children receiving personal injury settlements and with minor children receiving life insurance proceeds.   There are many reasons why minors may be entitled to funds, and normally a trust may be proposed as the mechanism for protecting those funds for the minor .  Let us provide that alternative to conservatorship, and give you the choice and ease of administration that only a trustee with experience may offer.

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