Conservatorship Abuse: How to Prove Breach of Fiduciary Duty in Colorado

Colorado courts grant conservators financial control over a protected person’s estate. Despite the many safeguards in place to prevent misuse, conservatorship abuse occurs. If you suspect that the conservator appointed for you or a relative is abusing their position, prompt and decisive action is crucial. Use this essential guide to learn the warning signs of conservatorship abuse and the legal steps you can take to protect yourself or your loved one. 

A conservatorship is a legal arrangement in which a court appoints a specific individual or “conservator” to manage an incapacitated individual’s financial estate. 

At a Glance	What to Know
What it covers	Conservatorship is strictly about money—paying bills, managing assets, and protecting property.
Why it's sought	It’s set up when someone—often elderly—cannot handle their own finances, often due to illness or aging.
Key difference	Think of conservatorship as financial help, whereas guardianship oversees personal care and medical well-being.
How long it lasts	It stays in place until the protected person recovers capacity or passes away.

In Colorado, conservatorship abuse refers to the mismanagement, misuse, or financial exploitation of a protected person’s estate by the court-appointed conservator.

While most conservators are trustworthy, theft occurs, costing older adults an estimated $28.3 billion annually in financial losses, according to a 2023 study from the American Association of Retired Persons (AARP). However, the problem is rapidly accelerating. When the Federal Bureau of Investigation (FBI) released its 2024 Internet Crimes Report, one of the findings was that older Americans reported nearly $4.9 billion in losses to fraud. 

Colorado law, specifically C.R.S. 15-14-425, grants the conservator the right to “collect, hold, and retain assets of the estate… until the conservator considers that disposition of an asset should be made,” often without needing additional court approval. Given the extensive authority granted to conservators, the position is inherently vulnerable to exploitation for financial gain. 

Abuse is not always obvious, so watch for these key warning signs:

Type of Abuse	What It Looks Like
Undue influence	The conservatee suddenly mentions new “friends” or visitors, specifically noting that they are giving the new friends gifts.
Financial exploitation	Evidence of the conservator not paying bills, establishing a new charity outside the original estate plan, or unexpected asset sales.
Isolation	The conservator limits your visits or contact with the protected person to keep the protected person's activities private.
Vendor fraud	The sudden appearance of new, high-cost professionals, such as attorneys, caregivers, or accountants, who may be colluding with the conservator to inflate costs.

Spotting the warning signs of abuse is the first step in helping your loved one, but you need to gather proof that the conservator is actually breaching their fiduciary duty. Here are some examples of evidence that may be relevant to your case: 

• Financial Records and Transactions -  Evidence of unauthorized or improper financial transactions is critical to proving conservator abuse. Bank statements, cancelled checks, or other financial documents showing transactions that personally benefit the conservator or are inconsistent with the protected person’s needs can be highly relevant to your case. For example, transactions involving a substantial conflict of interest, such as those benefiting the conservator or their close associates, are voidable unless the court expressly authorizes them.

• Estate Plans and Related Documents - Colorado law requires the conservator to consider the protected person’s estate plan when managing their assets. If the conservator’s actions contradict what’s in the known estate plan, such as their will and/or trust, you have more supporting evidence.

• Court-Ordered Reports and Financial Plans - Each year, the conservator must file financial plans and annual reports detailing the estate's administration, including assets, receipts, disbursements, and distributions. Any discrepancies, omissions, or failure to file these reports is evidence that a conservator is neglecting or abusing their duties.

• Witness Testimony - Under Colorado Rule of Evidence 701, laypeople, such as family members, caregivers, and other people familiar with the protected person’s situation, can provide insight into the conservator’s actions. Their opinions can be helpful to the court in understanding the facts of the case. 

• Evidence of Misrepresentations or Deception - Collect any evidence that the conservator made false statements to the court or to conceal their actions. For example, property tax records may indicate that the conservator did not pay the taxes as stated in the annual report, yet the funds for those taxes are missing.  

• Records of the Protected Person’s Needs and Well-Being - If a protected person’s needs aren’t being met, medical records, care plans, and testimony from healthcare providers can prove neglect.  

• Correspondence and Communications - Emails, letters, and other communications from the conservator can reveal improper motives, neglect, or self-dealing. 

You will strengthen your case for the conservator’s removal or other court-ordered relief when you have evidence of a pattern of misconduct, conflicts of interest, or failure to fulfill their duties. 

If you suspect that the conservator appointed to your family member is abusing their financial responsibilities, act as quickly as possible. 

When a conservator assumes a fiduciary duty, the court recognizes the weight of this responsibility and therefore mandates the purchase of a type of surety bond under C.R.S. 15-14-415 to ensure accountability. A conservator bond is a powerful recovery tool, as it allows a beneficiary to file a claim to recoup financial losses resulting from fiduciary theft or financial mismanagement. In Colorado, the bond amount for a conservator is generally required to cover the total value of the liquid estate plus one year of estimated income, unless the court makes specific findings to waive or reduce the bond requirement.

While the bond provides a strong deterrent against a fiduciary abusing their power, it does not guarantee full protection. Beneficiaries should be aware of its limitations, including: 

• Burden of Proof - The claimant must prove fiduciary theft or mismanagement to recover losses. 

• Proving Subtle Abuse - Financial abuse involving emotional manipulation or undue influence is difficult to substantiate in a bond claim. 

• Coverage Caps - Bond amounts are typically set based on liquid assets and annual income. Losses involving real estate or severe misuse may exceed the bond amount and limit your recovery.

A probate and/or elder law attorney will be able to discern whether filing a bond claim is the right move for your situation. However, successfully filing a bond claim doesn’t mean the court will terminate or replace the conservator. Removing a conservator in Colorado requires additional steps that I outline next.

Fortunately, C.R.S. 15-14-414 allows anyone concerned about a conservatee’s financial situation to directly petition the court to replace the current conservator, bypassing the need to first file a bond claim. 

While you can file this petition yourself, I strongly recommend you retain an informed probate and/or elder law attorney to substantially increase your chances of success. Here’s why:

• Evidence and Discovery - A lawyer knows exactly what evidence the court needs to prove abuse, such as misuse of funds or fraudulent billing, and is skilled at gathering this information through subpoenas and other mechanisms.

• Procedural Compliance - Your attorney ensures the petition, service of notice, and presentation of evidence at the hearing comply with all Colorado Rules of Probate Procedure, avoiding procedural errors that could cause your case to be delayed or dismissed. 

• Litigation and Trial - If the conservator or other family members oppose the removal, an attorney can effectively argue your case in court and cross-examine witnesses to substantiate your claim.

• New Conservator Nomination - Your attorney can guide you through the process of nominating a suitable new conservator and arguing why that person is in the conservatee’s best interest, especially if family members are in disagreement. 

Since the misconduct is essentially theft and a breach of a court officer’s duty, the previous fiduciary may be held accountable for charges of theft or perjury in cases involving conservatorship abuse. Punishment for these actions can include criminal charges. 

A corrupt conservator can ruin the protected person’s estate. Abusers often hire “friends” for unnecessary services or retain expensive care providers regardless of the conservatee’s actual needs. Conservators may claim expenses that never occurred or inflate their billable hours to extract more money from the estate. Sadly, family members are among the most frequent perpetrators of conservator abuse. While their intimate knowledge of the protected person’s finances makes them an obvious choice for the role, it also makes their heist easier to achieve without detection. 

The fundamental risk of undetectable abuse is tragically high, as Colorado’s legal framework relies on the court’s assumption that the conservator is trustworthy and compliant with filing deadlines. Meticulously filed paperwork can easily conceal monstrous conservatorship abuse. In other words, it’s possible to “follow” the law while also breaking it. 

Furthermore, the extensive, unmonitored statutory powers granted to conservators—such as the broad discretion to control and manage assets—make it easier to disguise theft by dressing it up as legitimate financial decisions. Intervention and external monitoring by a loved one can be crucial in preventing or stopping abuse that the court might otherwise miss. 

If your loved one is a victim of financial exploitation, don’t delay. Robinson & Henry’s compassionate probate attorneys provide the decisive legal action needed to petition for the removal of a corrupt fiduciary and recover misappropriated assets. Schedule your consultation online today or call 303-688-0944.