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Committee backs bill to clarify release process for conservators, sparking debate on protections for vulnerable people
Summary
The committee advanced House Bill 125, a measure to clarify how professional conservators can obtain court approval and a release from liability for actions covered by that approval, a change backers say will restore banks and trust departments to the conservatorship market.
The committee gave a do-pass recommendation to a substitute of House Bill 125, which would amend the probate code to authorize court-approved releases or orders that discharge a conservator from further liability for actions properly reported and approved by the court.
Sponsor Representative Matthews said the bill addresses a post-2018 contraction in the pool of qualified professional conservators and trust providers. Representatives of the New Mexico Bankers Association and the Independent Community Bankers Association testified they have withdrawn conservator services because of open-ended liability concerns and that clarified liability protection would encourage banks and trust departments to provide conservatorship services again.
Supporters said the bill mirrors longstanding fiduciary practice applied in probate and trust administration: a conservator who petitions the court, provides notice to interested persons, and obtains judicial approval for a report may be released from liability for the matters covered by that court order. Supporters said the approach protects conservatees by preserving judicial oversight and by circulating petitions to interested parties.
Members questioned whether the change could permit releases that leave a conservatee unprotected, or create incentives for conservators to seek blanket releases. Representative McQueen and others pressed authors to explain how courts and interested parties would remain able to challenge conservator actions. Sponsors and counsel said the bill preserves existing protections: releases signed by a protected person under conservatorship remain void, the court may appoint investigators or guardians ad litem, and the petition process includes notice to interested persons and a hearing.
Representative Abeyta cast a no vote and explained she was concerned about whether the bill struck the optimal balance between restoring professional conservators and guarding conservatees’ interests. After discussion the committee recorded a do-pass recommendation and sent the bill on for further consideration.
The committee’s action does not change the court’s continuing jurisdiction to review conservator conduct; supporters said the measure primarily creates a judicially supervised pathway that aligns conservatorship practice with trust-and-estate practice to expand the pool of qualified professional fiduciaries.
