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She directed $2.7 million from her elderly clients to her husband’s company. The judge approved every penny

She directed $2.7 million from her elderly clients to her husband’s company. The judge approved ever

Illustration by Gabe Hongsdusit for CalMatters, based on images from Facebook and court records, and provided by family members.

Conservatorship Conflicts of Interest in California: What Families Should Know and What to Do

If you are a California resident helping an aging parent, or you have been pulled into a conservatorship case for a loved one, you already know how overwhelming the process can feel. In a conservatorship, a court-appointed conservator can control major life and money decisions. That level of power makes transparency and accountability essential.

A recent CalMatters investigation highlights concerns about potential conflicts of interest and court oversight in certain conservatorship matters.CalMatters investigation

This article uses that reporting as a starting point to explain, in plain language, how California conservatorships work, what the rules are around conflicts of interest, and the practical steps families can take to protect a conservatee and reduce the risk of financial abuse.

Quick answer: key takeaways

  • Conservatorships can be necessary, but they create high risk for financial abuse, self-dealing, and family conflict.
  • California rules require transparency and generally discourage a conservator from hiring close family members or related businesses for profit unless the court approves after full disclosure.
  • Families can ask the court for accountings, object to petitions, request a different conservator, and report concerns to oversight agencies.
  • If you suspect wrongdoing, act early. Once assets are spent, recovery can be difficult and expensive.

    • Who this is for

    This is for:

  • Adult children and relatives involved in a California conservatorship
  • Conservatees who want to understand their rights and options
  • People who expect a conservatorship petition may be filed
  • Trustees, agents under a power of attorney, and executors who want to avoid similar problems through better planning

    • What is a conservatorship in California (and why it can go wrong)

    A conservatorship is a court proceeding where a judge appoints a conservator to manage the conservatee’s:

  • Personal care (housing, medical decisions, daily needs)
  • Finances (income, bills, investments, real estate, and sometimes business interests)

    • Conservatorships often involve vulnerable people. That vulnerability can attract conflict. Problems tend to arise when:

  • A conservator has financial incentives that do not align with the conservatee’s best interests
  • Family members disagree about care decisions or estate expectations
  • There is poor documentation or weak oversight
  • The conservatorship becomes a long-term arrangement without regular review

    • Conflicts of interest and self-dealing: the issue at the heart of many disputes

    A conflict of interest is any situation where a conservator’s personal, family, or business interests could reasonably affect decision-making for the conservatee.

    Self-dealing is a common related concept. It generally means the conservator benefits financially from decisions they make in their fiduciary role.

    Examples that frequently raise red flags:

  • Hiring a spouse, child, or related company for paid services
  • Steering legal work to a favored attorney or firm without a clear reason
  • Selling real estate or valuables in a way that benefits the conservator or related parties
  • Charging excessive fees or approving vague invoices

    • Even when something is legally disclosed, it may still be inappropriate if a reasonable person would view it as unfair or not truly necessary.

    What California expects from conservators (fiduciary duties in plain English)

    Conservators are fiduciaries. In practical terms, that means:

  • The conservatee’s best interests come first
  • Financial decisions should be prudent, documented, and defensible
  • Conflicts must be disclosed
  • Court approvals should be obtained when required

    • A conservator should be prepared to explain, in writing and with supporting documents:

  • Why a service provider was selected
  • What alternatives were considered
  • What the cost is and whether it is reasonable
  • Why the expense benefits the conservatee

    • Court approval and disclosures: what families should understand

    In many conservatorship matters, major actions require a petition and a court order. Depending on the situation, that can include:

  • Selling a home or other real estate
  • Moving large sums of money
  • Approving ongoing fee arrangements
  • Confirming accountings

    • A common misconception is that “the judge approved it” automatically means “it was fair.” Courts handle heavy calendars and often rely on the paperwork submitted. If information is missing, unclear, or misleading, a harmful arrangement can still be approved.

    Warning signs of financial abuse in a conservatorship

    Families often sense that something is wrong before they can prove it. Common warning signs include:

  • Sudden changes in where the conservatee lives or who has access
  • Isolation of the conservatee from family or longtime friends
  • Unusual spending patterns or new vendors
  • Repeated emergency petitions that create pressure to approve expenses quickly
  • Resistance to providing receipts, contracts, or explanations
  • The conservatee’s home being sold when less disruptive options exist

    • What you can do right now if you are concerned

    1. Get organized and request documentation

    Start with a timeline and document file:

  • Court filings and orders
  • Bank and investment statements (if available)
  • Invoices, contracts, and caregiver agreements
  • Medical notes and care plans (if relevant)

    • If you are entitled to receive notices in the case, keep a folder of every notice and hearing date.

    2. Review accountings carefully

    Accountings are where many problems appear. Watch for:

  • Payments to businesses connected to the conservator
  • Large “miscellaneous” charges without receipts
  • Recurring high monthly care bills without clear descriptions
  • Legal fees that do not match what is happening in the case

    • 3. Object, request limits, or seek a different conservator

    Depending on the facts, your attorney may help you:

  • File objections to petitions
  • Request a bond increase or tighter spending controls
  • Ask for a neutral professional conservator
  • Seek suspension or removal of a conservator

    • 4. Report concerns to appropriate agencies

    Depending on the issue, reporting channels may include:

  • Adult Protective Services (APS)
  • Law enforcement (for theft, fraud, or elder financial abuse)
  • Licensing and oversight agencies for professional fiduciaries

    • A lawyer can help coordinate reporting so you preserve evidence and avoid unintended consequences in the court case.

    How good estate planning can reduce conservatorship risk

    Many conservatorships happen because there is no effective plan in place. Strong planning can reduce the likelihood of a contested, expensive court process.

    Common tools include:

  • A properly drafted and funded California revocable living trust
  • Durable power of attorney for finances
  • Advance health care directive and HIPAA authorizations
  • Updated beneficiary designations
  • Clear instructions for digital accounts and real property

    • For California homeowners, trust funding is a frequent failure point. A trust that is not funded with real estate and key accounts may not prevent court involvement.

    Why families should speak with a California probate and conservatorship attorney early

    You should get legal advice sooner rather than later if:

  • There are signs of self-dealing or conflicts of interest
  • You believe the conservatee is being isolated or harmed