Why This Protection Exists
Conservators manage money, sell property, and handle financial transactions on behalf of a protected person. Banks, title companies, real estate agents, and other third parties need to know they can rely on a conservator's authority without investigating every detail of the court case behind it. This statute provides that assurance.
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 processes a withdrawal at the conservator's direction and the letters of appointment are current, the bank is shielded from liability. The law does not require the bank to look behind the transaction or question whether the conservator is acting in the protected person's best interest.
Limits on the Protection
There is one important exception. If the court has endorsed specific restrictions on the conservator's powers directly on the letters of appointment under A.R.S. 14-5426, those restrictions are binding on third parties. Anyone dealing with a conservator should review the letters carefully for any endorsed limitations.
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 procedural irregularities or jurisdictional defects in the conservatorship proceedings. This means a transaction is not unwound simply because the original court order had a technical flaw. For families and financial institutions alike, this statute helps keep estate transactions moving smoothly.