Sustainability

Forms

The Sustainability form is computed automatically as part of the inventory, the annual account and in forms for the budge and amending the budget.   Forms on the AZCourts Website

 

Proof of Notice

 

The conservator shall disclose the information required by this rule, including the conservator's assumptions and calculation, when filing an inventory, any conservator's account, and following any material change of circumstances

Law

17B A.R.S. Rules Probate Proc., Rule 30.2

A. The conservator shall disclose whether the annual expenses of the conservatorship exceed income and, if so, whether the assets available to the conservator less liabilities are sufficient to sustain the conservatorship for the duration of time the protected person needs care or fiduciary services.

B. The estate sustainability shall be calculated as follows:

[Available assets minus liabilities of the estate] divided by [Annual expenditures minus annual income] equals estate sustainability

C. If the assets are not sufficient to sustain the estate, the conservator shall also disclose the management plan for the non-sustainable conservatorship.

D. The information required by this rule shall be a good faith projection based upon the information that is reasonably available to the conservator concerning the subject person. This information may be considered by the court when entering orders.

E. Unless otherwise ordered by the court, the conservator shall disclose the information required by this rule, including the conservator's assumptions and calculation, when filing an inventory, any conservator's account, and following any material change of circumstances.

F. Unless otherwise ordered by the court, the sustainability disclosure shall be filed in the format set forth in the arizona code of judicial administration.

G. The disclosure required by this rule is not required in the conservatorship for a minor unless otherwise ordered by the court.

CREDIT(S)

Added Dec. 13, 2011, effective Sept. 1, 2012.

COMMENT

The purpose of the disclosure required by this rule is to provide the court and parties with a general idea as to whether the assets and income of the conservatorship estate are sufficient to pay for the protected person's expenses for the duration of time the protected person needs care and fiduciary services. Thus, the disclosure required by this rule is intended to serve solely as a management tool; The court does not intend that a good faith projection will form the basis for a claim of liability against the conservator.

The following example describes how the required disclosure is calculated: Assume a protected person's estate consists of $20,000 in bank accounts and a residence with a fair market value of $120,000 and a $65,000 mortgage. Further, assume that same protected person has an annual income of $20,000 and annual expenses (including fiduciary and attorney fees) of $45,000. the conservatorship's sustainability is calculated as follows:

($120,000 + $20,000--$65,000)
=
Estate Sustainability
($45,000--20,000)


$75,000
=
Estate Sustainability of 3 years
$25,000

Thus, if based on the conservator's knowledge of the protected person's medical condition and age, the conservatorship is not sustainable, the conservator shall explain how the protected person's expenses will be managed after three years.