MCLE ARTICLE: CONSERVATORSHIP ACCOUNTINGS II: MARKET AND CARRY VALUES, INVENTORY AND APPRAISAL, BONDS, AND USING THE JUDICIAL COUNCIL ACCOUNTING SCHEDULE FORMS
By Patricia A. Wenthe*
This article is a successor to "Conservatorship Accountings: How to Get Started and What to Tell Your Clients to Stay on Time!" published in the California Trusts and Estates Quarterly, Volume 22, Issue 3 (2016). This article provides an overview of often misplaced and misunderstood transactions in conservatorship accountings, including the establishment of, and changes to, market and carry values. It will also provide a review of the Inventory and Appraisal ("I&A") and its significance to market and carry values, the various types of I&As, and the conservator’s bond. Finally, it will focus on technical preparation issues, procedures, and mandatory use requirements for the Judicial Council accounting schedule forms.
I. MARKET VALUE VERSUS CARRY VALUE
Asset values and changes to those values are important components of conservatorship administration and proper accountings. Due to fluctuations in market values, changes in carry values, and events occurring at different times, attention by the conservator and the attorney to this aspect of administration is paramount.