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
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
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.
Copyright © Paul B. Bartlett, P.C., 2003-2012 all rights reserved.