Question:  My spouse owns an Arizona limited liability company as separate property and is the sole manager of the company.  He recently became mentally incompetent and can no longer run the company.  The LLC’s bank will not allow me to sign checks to pay employees and vendors.  How can I take over the management of the company?

Answer:  Because your husband failed to take action needed to protect you in the event of his incapacity you must now file a petition with an Arizona Superior Court and ask the Court to appoint you as the conservator of your husband’s financial affairs.  With that court order you will be able to elect yourself as a manager of the LLC, amend the Articles of Organization on file with the Arizona Corporation Commission to show that you are the new manager and give a copy of the filed amendment and Court order to the bank to take control of the LLC’s bank account.

Your husband’s failure to plan will cost you $3,000 – $5,0000 in legal fees that could have been avoided if he had signed a Financial Power of Attorney that named you as his agent with the power to manage his financial affairs in the even of his incapacity.  Contact us to prepare and file the petition to get you appointed as the conservator.

Warning:  This situation illustrates why people should take action to protect their most valuable asset – their family – before it is too late.  Don’t let this happen to your loved ones.  Adopt a comprehensive estate plan with a Trust, Will, Financial Power of Attorney, Healthcare Power of Attorney and Living Will now to prevent the stress, problems and high economic cost that results when people die or become incapacitated and have not taken the steps needed to protect their family.

To learn more about this topic and how to protect your family read my article called “Why You Need an Estate Plan to Protect Your Family and the High Cost of Procrastination and Neglect” and visit my Arizona Wills and Trusts website.