DEFINITION of 'Conservatorship'

A circumstance in which the court declares an individual unable to take care of legal matters and appoints another individual, known as a conservator, to do so.

BREAKING DOWN 'Conservatorship'

This is sometimes referred to as "LPS Conservatorship". The LPS stands for Lanterman, Petris and Short - the three senators who passed California's mental health conservatorship laws.

Find out how conservatorships play a role in Fannie Mae and Freddie Mac's operations; read How does Fannie Mae (FNMA) make money?

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