Avoiding the Groucho Marx Problem

circa 1945: American comic Groucho Marx (1890 – 1977), born Julius Henry Marx, with his trademark cigar and spectacles. (Photo by Weegee(Arthur Fellig)/International Center of Photography/Getty Images)

Groucho Marx got caught in a conservatorship because he became senile and could no longer take care of himself. Even though Groucho Marx had a will, he failed to plan for his incapacity and the court deemed him incompetent. A public circus followed in which his family fought his girlfriend for control of his estate. Groucho could have avoided this public spectacle and expense if he had transferred his assets into a living trust and named a person of his choosing to manage his assets.

Conservatorships, like guardianships, are proceedings whereby the State of California steps in through its court system and takes control of the individual’s assets because that individual is not able to manage his own assets. These conservatorship hearings are not just for the aged, but also for those who have heart attacks, strokes, dementia, and other health problems that prevent them from managing their own estate. Think Britney Spears!

These incompetency hearings are embarrassing for the entire family. A court investigator will be called in to talk to the elderly individual, and a judge must make a decision as to whether or not that individual is competent to manage his own affairs. If that individual is not competent, then the court will appoint an individual to manage his affairs for him. A court appointed manager must post a bond. Bonds are expensive and must be paid for. A court accounting must be prepared. These accountings are done on a regular basis, prepared by accountants and presented by attorneys. Conservatorships are expensive! Like guardianships and probates, these conservatorships are also public. Your friends, your neighbors, and your family can discover the details of your financial portfolio.

Avoid conservatorships! Save money. Avoid the Groucho Marx problem. Call the Trust Doctor (W. Bailey Smith) who has created over 7,000 trusts today! (949) 833-8891.