Q: in the state of Arizona can a conservatorship be set up as temporary rather than permanent when a minor is 16 1/2 years
And receiving a one time insurance settlement? It seems illogical to set up a permanent conservatorship for 18 months worth of time.
A:
Generally speaking, in Arizona, a temporary conservatorship or a trust can be set up instead of a permanent conservatorship for a minor receiving a one-time insurance settlement. Since the minor is 16 ½, a permanent conservatorship for just 18 months may be unnecessary.
Alternative Options
- Temporary Conservatorship – Courts allow short-term conservatorships under A.R.S. § 14-5401.01 if there’s an urgent need to manage the funds.
- Restricted Account – The court may approve placing funds in a restricted bank account until the minor turns 18, avoiding ongoing supervision.
- Trust Instead of Conservatorship – A Minor’s Settlement Trust or Revocable Trust can manage the funds without court oversight, allowing for structured payouts rather than a lump sum at 18.
Why a Trust Might Be Better
- Avoids court supervision
- Allows controlled distributions
- Provides tax and asset protection
Since every case is unique, it’s best to consult an Arizona estate planning attorney to determine the best approach for the minor’s settlement.
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