[AZ] Is it a conflict of interest to serve as power of attorney while also being a named beneficiary on TOD and POD accounts?

AZ Estate Planning

Richard

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Generally, being both a POA and a beneficiary isn't automatically a conflict of interest, but it can raise questions if not handled transparently.

It's important to ensure that all actions taken as a POA are in the best interest of the person you're representing. If there's any doubt or concern, it might be helpful to document decisions and keep open communication with any other interested parties. (CA Prob Code § 4233)

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Is it a conflict of interest to be a person’s Power of Attorney (POA) and be the named beneficiary of the same person’s Transfer on Death (TOD) and Payable on Death (POD) arrangements?

Lexi, Chatbot

I understand that navigating power of attorney and beneficiary roles can be complex. Can you please share if you are currently serving as the power of attorney for this person?

I’m not currently, but will be.

Lexi, Chatbot

Have there been any discussions or concerns raised by the individual regarding your dual role as POA and beneficiary?

Just what I’m asking. Is it in conflict?

Richard

Hello. My name is Richard and I have been a licensed attorney for over 25 years and hope to be of assistance.

I understand you're concerned about whether it's a conflict of interest to be a person's POA and also be the named beneficiary of their TOD and POD arrangements. Could you tell me more about any steps you've already taken regarding this matter?

I'm not currently the POA but we wish to be each other’s POA for all things financial and healthcare ultimately.

Today we had TOD notarized and witnessed in California for the California property. We've done TOD for the property in Arizona as well. I thought we could set up our POA forms here online but then the conflict of interest concern came up.

Richard

Thanks for sharing more details. Since you've mentioned setting up TODs in California and Arizona, could you confirm if both you and the other person reside in these states?

He resides in the TOD house in California and I reside in the TOD house in Arizona.

Richard

Got it, thanks for clarifying. Could you tell me a bit more about your relationship with the other person? Are you family members, partners, or friends?

Best friends for 35 years.

Richard

Thanks for sharing that. It's great to hear about such a long-lasting friendship. Now, let's address your concern about the potential conflict of interest.

Richard

Generally, being both a POA and a beneficiary isn't automatically a conflict of interest, but it can raise questions if not handled transparently.

TY. He has one blood related sister and I have 1 blood related brother. We’ll communicate our intent to them.

Richard

I hope I was able to help resolve your issue! Don't hesitate to reach out whenever you need assistance!

Thank you, Richard. I think we have our answer now.

Richard

No problem.

Richard

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