New Iowa Conservatorship Provisions
As a fiduciary, our team at First Point Wealth Management assists clients in the capacity as Conservator. A Conservator is appointed by a court to assist with another person's financial affairs. The Bank can be appointed as Conservator to assist minors, the elderly and individuals suffering from mental or physical disabilities. We offer security that assets will be managed professionally, in the individual’s best interest, while adhering to the Iowa court rules and regulations.
Following is information regarding new Iowa Conservatorship Provisions that have recently been signed into law
On May 1, 2019, Governor Kim Reynolds signed into law, acts relating to the opening and administration of guardianships and conservatorships. Both acts are to take effect on January 1, 2020. The new law imposes significant new duties and responsibilities on both new and existing conservators as of the effective date.
First and foremost, the new law will provide conservators with no inherent power and authority and eliminates the ability of conservators to exercise common powers such as making bank deposits or transacting on bank accounts without a court order. Under current law, conservators had powers and authority without a court order for many of these functions under two different Iowa Code sections which will be repealed effective January 1, 2020. This change is an explicit legislative determination that conservators can only act with prior court authorization beginning Jan. 1, 2020.
In Iowa there are a large number of private/family conservatorships in existence across the state. Several Iowa organizations such as the Iowa State Bar Association and the Iowa Trust Association, have been working with state court administrators to provide additional guidance for existing conservators to prepare for implementation of these changes including when to file the newly required “initial financial management plan”. If you are currently acting in the capacity of a Conservator, it is recommended for you to contact your legal counsel regarding these changes.
Please call Pam Fleener for more information on how First Point Wealth Management can assist you as Conservator.