Learning from the Leno Conservatorship Proceedings
Most people understand that estate plans address what happens after a person passes away. But what about in situations where they are alive but incapacitated? Without proper planning for incapacitation, many families turn to the court to figure out how to manage a loved one’s affair. Regardless of age or wealth, having a comprehensive estate plan that covers both incapacity and death is essential to avoid this. We can learn from Jay Leno’s conservatorship proceedings that he needed in order to manage his and his wife’s estate planning needs due to her incapacity.
Jay Leno Seeks Conservatorship to Follow Through With Estate Planning
Early this year, Jay Leno petitioned the court to be appointed as the conservator of his wife’s estate. A conservator is a court-appointed individual responsible for managing the financial and legal affairs of a person unable to do so themselves. He sought conservatorship to set up a living trust so Mrs. Leno would have funds for her care should he pass before her.
Since Mrs. Leno has dementia, she could not participate in the couple’s joint estate planning. Months later, the court eventually granted Mr. Leno’s petition for conservatorship, and he could proceed with their estate planning. This case exemplifies a favorable outcome. Even so, it took months for the court to settle. An estate plan prepared in advance could have avoided much of this time and hassle.
Important Takeaways From This Case
You may consider Mr. Leno’s experience a concern only for the rich. However, people of all degrees of wealth can find themselves in similar predicaments. It’s crucial to prepare and understand these important lessons:
- Spouses cannot automatically manage each other’s affairs in times of incapacity or death without prior estate planning or conservatorship proceedings.
- If Mrs. Leno had prepared a financial power of attorney granting her husband authority, Mr. Leno wouldn’t have needed to petition the court. She likely would have also had a last will or revocable living trust, aligning with what Mr. Leno sought to achieve.
- The goal is to avoid probate, but sometimes it’s necessary. If an adult cannot manage their affairs and has no estate plan, state law dictates a process to appoint someone. Unfortunately, this process can be lengthy and costly.
- While Leno’s situation has been resolved without conflict, having a plan is far better than relying on the state’s default rules. Estate planning allows you to be in better control.
Law Stein Anderson stands ready to assist you and your family at any stage of the estate planning process. Whether you’ve just begun your estate planning process or seek help planning for a loved one who can no longer do so, we are here for you. Give us a call today.