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What Is The Relationship Between a "Power of Attorney" & A Formal Guardianship/Conservatorship?

A Guardianship is probably broader than the rights given to the agent under either a "Financial" or "Medical" POA.  A Guardian is formally appointed as such, by a probate judge, and that Guardian then has formal reporting requirements.  An agent under a Financial POA probably has reporting requirements as well, but is not under the obligation to report on the court's schedule.  A Guardian has authority to make decisions about the "ward's" housing, medical, education, general welfare, etc.

By contrast, a Conservator's role is limited to the management of assets, and entering into contracts.  For example, if a person is incapacitated due to a brain injury, in an accident, a conservator would be the one to consult with, in terms of setting up an attorney-client relationship with personal injury counsel.  There are other similar business roles that a Conservator might take on, as well.

An agent's role under what I call a "Medical POA" is limited to medical care and end-of-life decisions, for the principal, after the principal is no longer able to make those decisions for themselves.

Many times, the existence of a well-drafted POA makes the formal appointment of a Guardian/Conservator unnecessary.  However, sometimes, getting the probate court to formally appoint a Guardian/Conservator provides clarity to a situation, where authority to act is unclear.

Learn more about Michigan Power of Attorney Laws & Protections.

You can actually designate the person you want to step in on your behalf, to make medical decisions; in Michigan this person is called a "Patient Advocate".
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You will not likely be hiring me as a "Guardians Ad Litem", but you might have to deal with one, after we file our Petition for Guardianship, Conservatorship, or other Probate Court petition. 
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Michigan law requires a little bit of drama and ceremony, for the proper execution of a financial power of attorney. Given the significant powers and responsibilities that an agent takes on, the purpose of such requirements is to make certain that the power of attorney document, and relationship, was set up intentionally.
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