As a part of the Minnesota Conservators Account Review Program (CARP) and the Conservator Account Auditing Program (CAAP), Minnesota conservators are required to submit all necessary financial documentation to the account program that pertains to the accounts they manage. This can include financial documents like bank statements, receipts and invoices that show expenses paid from the conservatorship, and many others. Auditors in the state of Minnesota review these documents to ensure that funds related to the conservatorship are not being mismanaged.
New Changes to the Program
As of last year, there were some significant changes to the audit procedures that pertain to how auditors review the accounts of conservators. If you are, or are going to be, a conservator in Minnesota, here is what you need to know about the update:
Note: if you are uncertain about anything regarding conservatorship accounting and auditing in MN, contact your attorney or the office of MyMNConservator (MMC).
Investments that are Annuities
Annuities are investments that pay out based on a fixed stream of payments. If the person subject to the conservatorship has annuities, they should be added to the MyMNConservator (MMC) account at a $1 value and remain until the person under conservatorship no longer receives payments. Conservators can expect to see more of this type of reporting on the review.
The Market Value of Real Estate
New recommendations are stating that the estimated market value of real estate contained within the conservatorship be periodically updated so that it matches the property tax statements received. If conservators report an amount that is too far off the current estimated marketing value, auditors may recommend that the value be updated. It’s in the conservator’s best interest to keep this value as up to date as possible within MMC
Under new recommendations, life estates, property that an individual owns only through the duration of their lifetime, are now to be reported at full value. Also included in the reporting’s description should be the person subject to conservatorship’s share.
Keep Up with MMC
The auditing processes of CARP and CAAP can changes, but you can keep up with them by visiting the MMC website.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.
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