Where the Money Goes
Arizona law is specific about how a public fiduciary handles funds. Money cannot sit in an uninsured account or be managed informally. All funds must go into either the county treasury or an insured bank, credit union, or savings and loan association authorized to do business in the county.
All funds coming into the custody of the public fiduciary shall be deposited in the county treasury and disbursed at the direction of the public fiduciary or shall be deposited or invested in one or more insured banks or in one or more insured credit unions authorized to do business in the county.
A.R.S. § 14-5603(A)If no insured financial institution operates within the county, the public fiduciary can deposit funds at any insured institution in the state. Withdrawals happen only at the direction of the public fiduciary, providing a layer of accountability.
Investment Plans Require Court Approval
The public fiduciary has the authority to establish or continue an investment plan for a ward. This is not a blank check. Three conditions must be met: the court must approve the plan, the plan must follow the same standard of care imposed on trustees under A.R.S. 14-10804 and 14-10806, and the court may require a surety bond to protect the assets.
The public fiduciary may establish or continue an estate or investment plan of the public fiduciary's ward if all of the following apply: 1. The public fiduciary receives the approval of the court for the plan. 2. The plan is consistent with the standard of care imposed on trustees in sections 14-10804 and 14-10806.
A.R.S. § 14-5603(B)These safeguards exist because the public fiduciary is managing money on behalf of someone who cannot protect their own interests. A personal estate plan with a named trustee and clear investment instructions can achieve the same protections, with more flexibility and less court involvement.
