Rule 5.407 Conservatorship; Settlements

When a conservator manages money or property for someone who needs protection (called a "protected person"), there are special rules about settling legal cases. A conservator cannot agree to a settlement if they will personally receive some of the money from that settlement, unless certain steps are taken first.

Before agreeing to any such settlement, either a guardian ad litem must be appointed to look out for the protected person's interests and agree to the settlement in writing or in court, or a judge must approve the settlement even if someone objects to it. A guardian ad litem is a person appointed by the court specifically to protect the interests of the protected person in that situation.

This rule exists because a conservator who stands to gain money from a settlement might not make the best decision for the person they are supposed to protect. The rule adds an extra layer of oversight to make sure the protected person is not taken advantage of.