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A.R.S. § 14-5423

Good Faith Protection in Conservator Deals

Verified April 4, 202657th Legislature, 1st Regular Session

If you do business with a conservator in good faith and rely on valid court-issued letters, the law protects you. You do not need to check whether the conservator is using their power correctly. You are not on the hook for how estate assets are used after they leave your hands.

Title 14, PROTECTION OF PERSONS UNDER DISABILITY AND THEIR PROPERTY

azleg.gov

Why This Protection Exists

Conservators manage money, sell property, and handle deals on behalf of a protected person. Banks, title companies, and other third parties need to know they can rely on a conservator's authority.

This statute gives that assurance. No one needs to dig into the details of the court case.

A person who in good faith either assists or deals with a conservator, on the basis of a copy of letters certified by or under the direction of the court or an officer thereof within sixty days of the transaction, is protected as if the conservator properly exercised the conservator's power.

A.R.S. § 14-5423(A)

In practical terms, if a bank handles a withdrawal at the conservator's request and the letters are current, the bank is shielded. The law does not require the bank to ask whether the conservator is acting in the protected person's best interest.

Limits on the Protection

There is one key exception. If the court has placed limits on the conservator's powers and noted them on the letters, those limits bind third parties. Anyone dealing with a conservator should review the letters for noted limits.

Restrictions on powers of conservators which are endorsed on letters as provided in section 14-5426 are effective as to third persons.

A.R.S. § 14-5423(A)

The protection also covers process errors or flaws in the court case. A deal is not undone just because the original court order had a technical issue.

For family members, this statute gives real peace of mind. When a relative serves as conservator, the people they work with can rely on the court-issued letters. This keeps daily money matters moving without delays.

Banks and title companies must cooperate as long as the letters are certified and current. The conservator does not need to explain the court case to every vendor.

Keeping certified letters up to date and handy makes deals smoother. It also reduces stress when managing a loved one's affairs during a hard time.

A. A person who in good faith either assists or deals with a conservator, on the basis of a copy of letters certified by or under the direction of the court or an officer thereof within sixty days of the transaction, is protected as if the conservator properly exercised the conservator's power and even though the authority of that person as conservator has been terminated. The fact that a person knowingly deals with a conservator does not alone require the person to inquire into the existence of a power, the propriety of its exercise, or the current authority of the conservator, except that restrictions on powers of conservators which are endorsed on letters as provided in section 14-5426 are effective as to third persons. A person is not bound to see to the proper application of estate assets paid or delivered to a conservator. B. The protection expressed in this section extends to any procedural irregularity or jurisdictional defect that occurred in proceedings leading to the issuance of letters. The protection expressed in this section is not a substitution for that provided by comparable provisions of the laws relating to commercial transactions and laws simplifying transfers of securities by fiduciaries.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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