What Counts as a Conflict of Interest
This statute draws a clear line. A personal representative cannot benefit personally from estate transactions. The ban covers sales involving the representative, their spouse, their agent, or their attorney.
It also covers any corporation or trust where the representative holds a large beneficial interest.
Any sale or encumbrance to the personal representative, his spouse, agent or attorney, or any corporation or trust in which he has a substantial beneficial interest, or any transaction which is affected by a substantial conflict of interest on the part of the personal representative, is voidable by any person interested in the estate except one who has consented after fair disclosure.
A.R.S. § 14-3713The word "voidable" is important. The transaction is not automatically void. Instead, any interested person can challenge it. If no one objects after fair disclosure, the transaction can stand.
Two Exceptions That Allow the Transaction
Some conflict-of-interest transactions may be appropriate. The statute provides two paths. First, the will or a contract by the deceased may have authorized the transaction.
Second, the court can approve the transaction after giving notice to interested persons. This means the representative is sometimes the logical buyer for estate property. The safeguards ensure transparency and proper oversight.