Money Rehab with Nicole Lapin - #FreeBritney, Part 1: Conservatorships and Guardianships

Episode Date: June 8, 2021

Most people don’t know that in the blink of an eye, you could wind up in a situation where you have no control over your finances or bodily autonomy, and your every financial choice becomes a matter of public record. In the first of our two-part episode, Nicole unpacks the realities of guardianships and conservatorships: how to protect yourself long before there’s ever a need, who to choose as your trusted decision-maker, and why these can be powerful tools to protect a vulnerable loved one.  Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.

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Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. By now you've probably heard about the hashtag free Britney movement.

You vaguely know it has something to do with Britney's father having control over her money, that she's not allowed to drive, and people are really, really upset about it. But you're hazy on the details. Well, all of that has to do with the legal concept known as guardianship or conservatorship. So what the fuck are those? Since we're in California, we'll use the word conservatorship since we're talking about adults over 18, most often elderly adults. You'll need to take a look at the laws in your state to see how these are specifically defined,

but when we talk about guardianships and conservatorships, we're generally talking about a judge's ruling to give someone decision-making power over another person's personal or financial life. This could be because of dementia, drug use, or a host of other reasons, but it's generally initiated because an individual is no longer able to make important decisions for themselves. Usually, a concerned family member or friend initiates a conservatorship by filing a petition in court. A medical exam by a doctor comes next to help the judge decide if the person in question has the capacity to make decisions for themselves. Now, I might go out and spend five grand on a Chanel purse. Whether I happen to have five

grand laying around to spend on that purse or if I'm putting it on a credit card with 23% interest and digging myself into a pit of debt is totally up to me. That's because I have the mental capacity to make those decisions, even the ones that might not be wise. If I am no longer able, though, to tell the difference between $5 and $5,000, that's one of the things that might show a doctor that I no longer have what's called decisional capacity. People without decisional capacity can be taken advantage of, drained of their wealth, and unknowingly put their lives in danger, which is why something like a conservatorship can be a wonderful and caring thing.

The judge in a conservatorship case will use the doctor's assessment, as well as listen to what family and friends have to say, before making her decision about whether someone needs a conservatorship. to say, before making her decision about whether someone needs a conservatorship. If a conservator is needed, the court appoints someone to make decisions for the individual. Unless it's limited by the court, and pay special attention to that word limited, the conservator has the very same rights, powers, and duties over their ward as a parent would have over a child. What's more, when somebody becomes a ward,

the court takes away the civil liberties that we enjoy every day. The right to vote. The right to marry. The right to drive. Because you're taking away these civil liberties, the ward then needs to get due process. That's why, once appointed, the conservator is required to report to court every year. And they truly have the power over just about every part of that ward's life.

A conservator can release medical records, has some power over mental health decisions, short of committing them to a mental facility, make financial and contract decisions, file lawsuits, sell their house, and must apply for benefits if the ward could be eligible. And no, it's not like what you saw Rosamund Pike doing in I Care A Lot. Most public guardians care greatly for their wards, and despite what makes for a very fun Hollywood romp, there are protections in place to keep things like that storyline from happening. You may also be wondering, how can you protect yourself from ever having to enter into this lengthy, costly, and potentially embarrassing situation? Because after all, once your entire life becomes a court proceeding,

it becomes a matter of public record. A power of attorney, or POA, is your best bet to avoid this mess altogether. It's a legal document where you can pre-authorize another person to act on your behalf, either for healthcare or financial decisions. It's a low-cost and private way to decide which family member or trusted friend will have the legal authority to carry out your wishes if you can no longer speak or act for yourself, whether that's because of something long-term like Parkinson's or dementia, or if you slip, fall, get your bell rung, and are only incapacitated for a day. With a POA, the person you choose becomes your legal clone. They can step into your shoes, make decisions based on what you would want. Do you want extraordinary measures to be taken to keep you alive? To be put on a ventilator if you can't breathe by yourself? With a POA, you can outline some of those decisions

and allow a trusted person in your life to make them. If you don't have those docs in place and lose capacity, it's up to the court to get a decision maker for you. And then the sometimes messy business begins. If a judge decides you need a guardian or conservator, then the question becomes, who will it be? There's a natural process for deciding, but trusted friends and family can actually petition to be your conservator. And if they disagree, there's a huge cost in legal fees

if people are fighting about who should be your conservator. Not only that, but the person appointed as your guardian or conservator may not be the person who you would have chosen yourself. your guardian, or conservator may not be the person who you would have chosen yourself. It may even be someone you've never met. With that said, if you don't have honest and reliable family members, then that may be exactly who you want. A neutral third party with your best decision at heart. So what's the deal with Britney? Well, we'll get back to all things Britney Spears tomorrow. But for now, here's today's tip you can take straight to the bank. Start thinking about who you'd want to be there for you and who you'd trust enough to make tough decisions if they needed to be made on your

behalf. Maybe your sister is great with money and your brother happens to be a physician's assistant. So you could make one your POA for property and one for healthcare. Who are the most trusted people in your life? And we'll hit you baby one more time tomorrow to see how conservatorships have played out at least in one very, very high profile case. Money Rehab is a production of iHeartMedia.

I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Catherine Law. Money Rehab is edited and engineered by Brandon Dickert with help from Josh Fisher. Executive producers are Mangesh Hatikader and Will Pearson. Huge thanks to the OG Money Rehab supervising producer, Michelle Lanz, for her pre-production and development work. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all. You spend my money, money. You spend my money, money, money. You spend my money, money, money.