What are the tax filing requirements for an individual who is under a court-ordered conservatorship in California?

The conservator is responsible for filing the individual state and federal tax returns for the person under conservatorship (the conservatee). The tax return is filed in the conservatee's name and under their Social Security Number, as the conservatorship itself is not a separate taxable entity. Here are the steps the conservator must take to fulfill this duty: Step 1: Notify the Tax Agencies of Your Fiduciary Role File IRS Form 56, "Notice Concerning Fiduciary Relationship," with the IRS as soon as you are appointed. This officially informs the IRS of your authority to act on the conservatee's behalf regarding tax matters. The California Franchise Tax Board (FTB) accepts the federal Form 56. Step 2: Collect the Conservatee's Financial Documents Gather all of the conservatee's tax documents for the year. This includes all income statements like W-2s, 1099s (for Social Security, pensions, interest, dividends), and any records of other income. Also collect records for potential deductions, such as medical expenses or property taxes paid from the estate. Step 3: Prepare the Individual Tax Returns Complete the standard federal Form 1040 and California Form 540 tax returns. The returns must be prepared using the conservatee's name and Social Security Number. All income earned by the conservatee or their assets is reported on these forms. Step 4: Sign and File the Returns The conservator signs the tax return on behalf of the conservatee. You should sign the conservatee's name, followed by your signature and title, for example: "John Smith, by Jane Doe, Conservator." File the returns by the standard tax deadline, typically April 15. Step 5: Pay Any Taxes Owed Use funds from the conservatorship estate to pay any federal or state taxes that are due. Under the California Probate Code, paying taxes is a required duty of the conservator. Important Details and Nuances: The conservatee remains the individual taxpayer. The conservatorship is a legal arrangement for managing their affairs, not a separate taxable trust or estate. The fees you earn as a conservator are taxable income to you, but they may be a deductible expense on the conservatee's tax return. Warnings and Limitations: A conservator can be held personally liable for unpaid taxes, interest, and penalties if they fail to file returns or pay taxes owed from the conservatorship estate's assets. Keep meticulous records of all income, expenses, and tax filings for the duration of the conservatorship. This is general information and does not constitute legal advice. For complex situations, especially those involving large estates or business interests, you should consult with a qualified California attorney or a Certified Public Accountant (CPA).