Originally published July 12, 2024. Updated July 14, 2026.
When most people think about estate planning, they usually focus on what will happen when they die. They often do not consider what will happen if they are alive, but unable to manage their own financial or personal affairs because of illness or incapacity.
Late-night talk show host Jay Leno recently sought court involvement after court filings alleged that his wife, Mavis Leno, suffered from dementia and was unable to manage her financial affairs. Although the Leno matter arose under California law, it highlights an important lesson for Colorado families: creating a well-drafted estate plan before you lose capacity may help your family avoid the expense and burden of court involvement, including a conservatorship.
What Is a Conservator? A conservator is a person appointed by the court to manage the financial affairs and property of someone who is unable to manage those matters themselves.
In Colorado, a conservator generally manages a protected person’s financial affairs, while a guardian may be appointed to make personal and healthcare decisions for an incapacitated adult.
Jay Leno’s Petition to the Court. In January 2024, Jay Leno requested the court to appoint him as his wife’s conservator after alleging that her dementia prevented her from managing her financial affairs. Court proceedings continued for several months before Mr. Leno’s appointment was approved. Conservatorships often involve ongoing court oversight and reporting obligations.
Important Takeaways. This experience is not limited only to the rich and famous; you could find yourself in the same situation if you do not plan ahead.
Lesson #1: Spouses cannot automatically step in for each other in times of incapacity or death.
Many people assume that because they are married, they can automatically manage their spouse’s finances or make legal decisions upon their incapacity, without estate planning tools in place or the need for court involvement. This is simply not the case. While spouses may have certain legal rights or priority in some situations, marriage alone does not automatically authorize one spouse to manage the other’s separately held assets, retirement accounts, business interests, or healthcare information. Formal planning documents or court involvement may be required.
Lesson #2: A durable financial power of attorney can help reduce the need for a conservatorship.
A properly drafted durable financial power of attorney can allow a trusted person to manage your financial affairs if you become incapacitated, reducing the likelihood of a conservatorship. However, it is only one part of a comprehensive incapacity plan and may not eliminate the need for court involvement in every situation.
Lesson #3: A complete incapacity plan includes more than a financial power of attorney.
A durable financial power of attorney is only one part of a complete incapacity plan. Depending on your circumstances, your plan may also include a medical power of attorney, HIPAA authorization, advance directive, and, for many families, a properly funded revocable living trust.
Lesson #4: Planning must happen while you still have legal capacity.
A diagnosis of dementia does not necessarily mean a person lacks legal capacity, but capacity may decline over time. Creating or updating estate planning documents before capacity is lost can help ensure that your wishes are carried out and may reduce the likelihood of future court proceedings.
Lesson #5: Having a plan is better than relying on the state’s default rules.
Although the Lenos’ situation appears to have been resolved successfully, relying on court proceedings can be time-consuming, expensive, and stressful for families. Multiple family members may disagree about who should manage a loved one’s affairs, and those disputes may need to be resolved by a judge. Court proceedings can also expose sensitive family and financial matters to the public.
Without proper planning, a Colorado court may ultimately determine who has authority to act on your behalf under Colorado law.
We Can Help
We can help you and your loved ones regardless of where you find yourself in the estate planning process. Whether you are looking to proactively plan to ensure that your wishes are carried out during all phases of your life, or if you need assistance with a loved one who can no longer manage their own affairs, give us a call.Contact
