Reference Title: persons under disability

AN ACT
AMENDING SECTIONS 14-2801, 14-5103, 14-5106, 14-5207, 14-5209, 14-5210, 14-5212, 14-5303, 14-5309, 14-5310, 14-5311, 14-5313, 14-5401, 14-5401.01, 14-5402, 14-5404, 14-5405, 14-5406, 14-5407, 14-5408, 14-5409, 14-5410, 14-5411, 14-5412, 14-5416, 14-5418, 14-5419, 14-5420, 14-5421, 14-5423, 14-5424, 14-5425, 14-5427, 14-5429 AND 14-5430, ARIZONA REVISED STATUTES; RELATING TO PROTECTION OF PERSONS UNDER DISABILITY.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 14-2801, Arizona Revised Statutes, is amended to read:

14-2801 . Disclaimer of property interest; requirements; effect

A. If by any means an interest in property or with respect to property devolves to a person, that person or that person's personal representative may disclaim that interest in whole or in part by delivering or filing a written disclaimer under this section. This right exists notwithstanding any limitation on the interest of the disclaimant in the nature of a spendthrift provision or similar restriction or any restriction or limitation on the right to disclaim contained in the governing instrument. For purposes of this subsection, "representative" includes a personal representative of a decedent, a conservator of a disabled PROTECTED person, a guardian of a minor or incapacitated person and an agent acting on behalf of the person within the authority of a power of attorney.

B. If the property or interest has devolved to the disclaimant under a testamentary instrument or by the laws of intestacy and is of a present interest, the disclaimer must be filed not later than nine months after the death of the deceased owner or deceased donee of a power of appointment. If that property or interest is of a future interest, the disclaimer must be filed not later than nine months after the event that determines that the taker of the property or interest is finally ascertained and the interest is indefeasibly vested. The disclaimer must be filed in the court in the county in which proceedings for the administration of the estate of the deceased owner or deceased donee of the power have been commenced. A copy of the disclaimer must be delivered in person or mailed by certified mail, return receipt requested, to any personal representative or other fiduciary of the decedent or donee of the power.

C. If a property or interest has devolved to the disclaimant under a nontestamentary instrument or contract and is of a present interest the disclaimer shall be filed not later than nine months after the effective date of the nontestamentary instrument or contract. If the property or interest is of a future interest the disclaimer must be filed not later than nine months after the event that determines that the taker of the property or interest is finally ascertained and the taker's interest is indefeasibly vested. If the person entitled to disclaim does not know of the existence of the interest, the disclaimer must be delivered or filed not later than nine months after the person learns of the existence of the interest. The effective date of a revocable instrument or contract is the date on which the maker no longer has power to revoke it or to transfer to the maker or another the entire legal and equitable ownership of the interest. The disclaimer or a copy of the disclaimer must be delivered in person or mailed by certified mail, return receipt requested, to the person who has legal title to or possession of the interest disclaimed.

D. A surviving joint tenant may disclaim as a separate interest any property or an interest in that property that devolves to that joint tenant by right of survivorship. A surviving joint tenant may disclaim the entire interest in any property or an interest in that property that is the subject of a joint tenancy devolving to that joint tenant, if the joint tenancy was created by act of a deceased joint tenant, the survivor did not join in creating the joint tenancy and the survivor has not accepted a benefit under it.

E. If real property or an interest in that property is disclaimed, a copy of the disclaimer may be recorded in the office of the county recorder of the county in which the property or interest disclaimed is located.

F. The disclaimer shall describe the property or interest disclaimed, declare the disclaimer and its extent and be signed by the disclaimant.

G. If property or an interest in that property devolves to a disclaimant under a testamentary instrument, under a power of appointment exercised by a testamentary instrument or under the laws of intestacy and the decedent has not provided for another disposition of that interest, should it be disclaimed, or of disclaimed or failed interests in general, the disclaimed interest devolves as if the disclaimant had predeceased the decedent. However, if by law or under the testamentary instrument the descendants of the disclaimant would share in the disclaimed interest by representation or otherwise if the disclaimant were to predecease the decedent, the disclaimed interest then passes by representation or as directed by the governing instrument to the descendants of the disclaimant who survive the decedent. A future interest that takes effect in possession or enjoyment after the termination of the estate or interest disclaimed takes effect as if the disclaimant had predeceased the decedent. A disclaimer relates back for all purposes to the date of death of the decedent.

H. If property or an interest in property devolves to a disclaimant under a nontestamentary instrument or contract and the instrument or contract does not provide for another disposition of that interest, should it be disclaimed, or of disclaimed or failed interests in general, the disclaimed interest devolves as if the disclaimant had predeceased the effective date of the instrument or contract. However, if by law or under the nontestamentary instrument or contract the descendants of the disclaimant would share in the disclaimed interest by representation or otherwise if the disclaimant were to predecease the effective date of the instrument, the disclaimed interest then passes by representation or as directed by the governing instrument to the descendants of the disclaimant who survive the effective date of the instrument. A disclaimer relates back for all purposes to that date. A future interest that takes effect in possession or enjoyment at or after the termination of the disclaimed interest takes effect as if the disclaimant had died before the effective date of the instrument or contract that transferred the disclaimed interest.

I. The disclaimer or the written waiver of the right to disclaim is binding on the disclaimant or the person who makes the waiver and on all persons claiming through or under either of them.

J. The right to disclaim property or an interest in property is barred by:

1. An assignment, conveyance, encumbrance, pledge or transfer of the property or interest or a contract.

2. A written waiver of the right to disclaim.

3. An acceptance of the property or interest or a benefit under it.

4. A sale of the property or interest under judicial sale made before the disclaimer is made.

K. This section does not limit a person's right to waive, release, disclaim or renounce property or an interest in that property under any other statute.

L. An interest in property that exists on December 31, 1994 as to which, if a present interest, the time for filing a disclaimer under this section has not expired or, if a future interest, the interest has not become indefeasibly vested or the taker finally ascertained may be disclaimed within nine months after December 31, 1994.

M. FOR THE PURPOSES OF THIS SECTION:

1. ACCEPTANCE OF AN INTEREST IS NOT ACCEPTANCE OF ANY SEPARATE INTEREST GIVEN UNDER THE SAME INSTRUMENT.

2. INTEREST FOR LIFE OR FOR ANY OTHER PERIOD OF TIME IS A SINGLE INTEREST THAT IS SEPARATE FROM ANY INTEREST IN THE PRINCIPAL OR ANY ADDITIONAL INTEREST IN INCOME THAT TAKES EFFECT ON THE OCCURRENCE OF A FUTURE EVENT.

3. AN INTEREST IN PERIODIC PAYMENTS TO BE MADE FROM PRINCIPAL OR INCOME, OR BOTH, FOR THE LIFE OF THE BENEFICIARY OR FOR ANY OTHER PERIOD OF TIME IS A SINGLE INTEREST THAT IS SEPARATE FROM ANY ADDITIONAL PAYMENTS TO BE MADE ON THE OCCURRENCE OF A FUTURE EVENT.

Sec. 2. Section 14-5103, Arizona Revised Statutes, is amended to read:

14-5103 . Facility of payment or delivery

A. Any person under a duty to pay or deliver money or personal property to a minor, including monies related to the settlement of a civil claim, may perform this duty, in amounts not exceeding five TEN thousand dollars per annum, by paying or delivering the money or property to any of the following:

1. The minor, if the minor is married.

2. Any person having the care and custody of the minor and with whom the minor resides.

3. The guardian of the minor.

4. A financial institution incident to a deposit in a federally insured savings account in the sole name of the minor and giving notice of the deposit to the minor.

B. This section does not apply if the person making payment or delivery has actual knowledge that a conservator has been appointed or proceedings for appointment of a conservator of the estate of the minor are pending.

C. The persons, other than the minor or any financial institution under subsection A, paragraph 4, receiving money or property for a minor are obligated to protect and preserve the money and property unless there are not sufficient resources available to provide for the minor's needs. In that event they shall apply funds as are necessary to the support and education of the minor but shall not pay themselves except by way of reimbursement for out-of-pocket expenses for goods and services necessary for the minor's support.

D. Any balance not used and any property received for the minor shall be turned over to the minor when the minor attains majority. Within three years after the minor attains majority, the minor PERSON may require an accounting.

E. Persons who pay or deliver in accordance with this section are not responsible for its proper application.

Sec. 3. Section 14-5106, Arizona Revised Statutes, is amended to read:

14-5106 . Disclosure requirements for proposed guardians and conservators; restrictions by local rules

A. Before being appointed as a temporary or permanent guardian or conservator every proposed appointee, except entities referred to in section 14-5411, subsection B, shall provide to the court, under oath, the following information:

1. Whether or not the proposed appointee has been convicted of a felony in any jurisdiction and, if so, the nature of the offense, the name and address of the sentencing court, the case number, the date of conviction, the terms of the sentence, the name and telephone number of any current probation or parole officer and the reasons why the conviction should not disqualify the proposed appointee.

2. Whether or not the proposed appointee has acted as guardian or conservator for another person within three years of the petition and, if so, the number of individuals for whom the proposed appointee is currently serving and the number of individuals for whom the proposed appointee's appointment has been terminated within the three-year period.

3. Whether or not the proposed appointee has a working knowledge of the powers and duties imposed on a guardian or a conservator.

4. Whether or not the proposed appointee has acted within three years of the petition in a fiduciary capacity pursuant to a power of attorney and, if so, the number of persons for whom the appointee has so acted. If the proposed appointee has ever acted in such capacity for the proposed ward OR PROTECTED PERSON , the proposed appointee shall specify the date of execution of such power of attorney, the place where the power of attorney was executed, the actions taken by the proposed appointee pursuant to such power of attorney and whether or not such power of attorney is currently in effect.

5. Whether or not, to the best of the proposed appointee's knowledge, the proposed appointee or any enterprise in which the proposed appointee has an interest is listed in the registry at the office of the attorney general pursuant to section 46-455, subsection N.

6. Whether or not, within three years of the petition, the proposed appointee has failed to file any report of guardian or conservatorship accounting for three months following receipt of notice of delinquency.

7. Whether or not the proposed appointee has ever been removed as a guardian or conservator and, if so, for whom and under what circumstances.

8. The nature of the proposed appointee's relationship to the proposed ward OR PROTECTED PERSON , and how the proposed appointee met the proposed ward OR PROTECTED PERSON .

9. Whether or not the proposed appointee or any enterprise in which the proposed appointee has an interest ever received anything of value, exceeding a total of one hundred dollars in any one year, by gift, devise or bequest from an individual or the estate of an individual to whom the proposed appointee was not related by blood or marriage and for whom the proposed appointee has at any time served as guardian, conservator, trustee or attorney-in-fact, and, if so, the number of such occasions.

10. Whether or not, to the best of the proposed appointee's knowledge, the proposed appointee or any enterprise in which the proposed appointee has an interest is named as a personal representative, trustee, devisee or other type of beneficiary of any individual to whom the proposed appointee is not related by blood or marriage and for whom the proposed appointee has at any time served as guardian, conservator, trustee or attorney-in-fact and, if so, the number of such occasions.

11. Whether or not the proposed appointee has an interest in any enterprise providing housing, health care or comfort care services to any individual, and, if so, the name and address of each such enterprise and the extent of each such interest.

B. The appointing court may impose restrictions or conditions on the appointment of a guardian or conservator, or of a category of guardian or conservator, that it finds necessary to provide for the appropriate care and supervision of its wards.

C. The court may, in its discretion, require proposed appointees to disclose to the court, the court visitor INVESTIGATOR and the court-appointed attorney further details concerning the information referred to in subsection A of this section, including, but not limited to, with respect to other occasions in which the proposed appointee has acted as a guardian or conservator, the following information:

1. The identities of the persons for whom the appointee has served as a guardian or conservator.

2. The identity of the court making each appointment and the court case number.

3. The dates of service.

D. The court may, in its discretion, upon a showing of good cause place limitations upon access by the public to any or all of the information disclosed pursuant to this section.

Sec. 4. Section 14-5207, Arizona Revised Statutes, is amended to read:

14-5207 . Formal appointment of guardian of minor; procedure

A. Notice of the time and place of hearing of a petition for the appointment of a guardian of a minor is to be given by the petitioner ANY PERSON INTERESTED IN THE WELFARE OF A MINOR MAY PETITION THE COURT FOR APPOINTMENT OF A GUARDIAN. THE COURT SHALL THEN SET A HEARING DATE . THE PETITIONER SHALL GIVE NOTICE OF THE TIME AND PLACE OF THE HEARING in the manner prescribed by section 14-1401 to the following :

1. The A minor , if he is WHO IS AT LEAST fourteen or more years of age.

2. The person who has had the principal care and custody of the minor during the sixty days preceding the date of the petition.

3. Any living parent of the minor.

B. Upon hearing, if the court finds that a qualified person seeks appointment, venue is proper, the required notices have been given, the requirements of section 14-5204 have been met and the welfare and best interests of the minor will be served by the requested appointment, it shall make the appointment AND ISSUE LETTERS ON THE ACCEPTANCE OF THE PROPOSED GUARDIAN . In other cases the court may dismiss the proceedings or make any other disposition of the matter that will best serve the interests of the minor.

C. If necessary, the court may appoint a temporary guardian, with the status of an ordinary guardian of a minor, but the authority of a temporary guardian shall not last longer than six months.

D. If, at any time in the proceeding, the court determines that the interests of the minor are or may be inadequately represented, it may appoint an attorney to represent the minor, giving consideration to the preference of the minor if the minor is AT LEAST fourteen years of age or older.

Sec. 5. Section 14-5209, Arizona Revised Statutes, is amended to read:

14-5209 . Powers and duties of guardian of minor

A. A guardian of a minor has the powers and responsibilities of a CUSTODIAL parent who has not been deprived of custody of his unemancipated minor child, except that REGARDING THE WARD'S SUPPORT, CARE AND EDUCATION. A guardian is not legally obligated to provide from his own funds for the ward PERSONALLY LIABLE FOR THE WARD'S EXPENSES and is not liable to third persons BY REASON OF THE RELATIONSHIP for acts of the ward solely by reason of the guardianship .

B. In particular, and without qualifying the foregoing, a guardian has the following powers and duties SHALL :

1. BECOME OR REMAIN PERSONALLY ACQUAINTED WITH THE WARD AND MAINTAIN SUFFICIENT CONTACT WITH THE WARD TO KNOW OF THE WARD'S CAPACITIES, LIMITATIONS, NEEDS, OPPORTUNITIES AND PHYSICAL AND MENTAL HEALTH.

1. 2. He must Take reasonable care of his THE ward's personal effects and commence protective proceedings if necessary to protect other property of the ward.

2. 3. He may receive money payable for the support of the ward to the ward's parent, guardian or custodian under the terms of any statutory benefit or insurance system, or any private contract, devise, trust, conservatorship or custodianship. He also may receive money or property of the ward paid or delivered by virtue of section 14-5103. Any sums so received shall be applied APPLY ANY AVAILABLE MONIES OF THE WARD to the ward's current needs for support, care and education.

4. He must exercise due care to Conserve any excess MONIES for the ward's future needs , unless BUT IF a conservator has been appointed for the estate of the ward, in which case excess shall be paid over THE GUARDIAN, at least annually QUARTERLY, SHALL PAY to the conservator MONEY OF THE WARD TO BE CONSERVED FOR THE WARD'S FUTURE NEEDS . Sums so received by the guardian are not to be used for compensation for his services except as approved by order of court or as determined by a duly appointed conservator other than the guardian. A guardian may institute proceedings to compel the performance by any person of a duty to support the ward or to pay sums for the welfare of the ward.

3. The guardian is empowered to facilitate the ward's education, social or other activities and to authorize medical or other professional care, treatment or advice. A guardian is not liable by reason of this consent for injury to the ward resulting from the negligence or acts of third persons unless it would have been illegal for a parent to have consented. A guardian may consent to the marriage or adoption of his ward.

4. 5. A guardian must Report the condition of his THE ward and of the ward's estate which has been subject to his possession or control, as ordered by THE court on petition of any person interested in the minor's WARD'S welfare or as required by court rule.

C. A GUARDIAN MAY:

1. RECEIVE MONIES PAYABLE FOR THE SUPPORT OF THE WARD UNDER THE TERMS OF ANY STATUTORY BENEFIT, INSURANCE SYSTEM, PRIVATE CONTRACT, DEVISE, TRUST, CONSERVATORSHIP OR CUSTODIANSHIP, AND MONIES OR PROPERTY OF THE WARD PAID OR DELIVERED PURSUANT TO SECTION 14-5103.

2. TAKE CUSTODY OF THE PERSON OF THE WARD AND ESTABLISH THE WARD'S PLACE OF RESIDENCE IN OR OUTSIDE THIS STATE, IF CONSISTENT WITH THE TERMS OF AN ORDER OF A COURT OF COMPETENT JURISDICTION RELATING TO THE DETENTION OR COMMITMENT OF THE WARD.

3. IF NO CONSERVATOR FOR THE ESTATE OF THE WARD HAS BEEN APPOINTED, INSTITUTE PROCEEDINGS, INCLUDING ADMINISTRATIVE PROCEEDINGS, OR TAKE OTHER APPROPRIATE ACTION TO COMPEL THE PERFORMANCE BY ANY PERSON OF A DUTY TO SUPPORT THE WARD OR TO PAY AMOUNTS FOR THE WELFARE OF THE WARD.

4. FACILITATE THE WARD'S EDUCATION, SOCIAL OR OTHER ACTIVITIES AND CONSENT TO MEDICAL OR OTHER PROFESSIONAL CARE, TREATMENT OR ADVICE FOR THE WARD. A GUARDIAN IS NOT LIABLE BY REASON OF THIS CONSENT FOR INJURY TO THE WARD RESULTING FROM THE NEGLIGENCE OR ACTS OF THIRD PERSONS UNLESS A PARENT WOULD HAVE BEEN LIABLE IN THE CIRCUMSTANCES.

5. CONSENT TO THE MARRIAGE OR ADOPTION OF THE WARD.

6. IF REASONABLE, DELEGATE TO THE WARD CERTAIN RESPONSIBILITIES FOR DECISIONS AFFECTING THE WARD'S WELL-BEING.

D. A GUARDIAN IS ENTITLED TO REASONABLE COMPENSATION FOR SERVICES AS GUARDIAN AND TO REIMBURSEMENT FOR ROOM, BOARD AND CLOTHING PERSONALLY PROVIDED TO THE WARD, BUT ONLY AS APPROVED BY ORDER OF THE COURT. IF A CONSERVATOR, OTHER THAN THE GUARDIAN OR ONE WHO IS AFFILIATED WITH THE GUARDIAN, HAS BEEN APPOINTED FOR THE ESTATE OF THE WARD, REASONABLE COMPENSATION AND REIMBURSEMENT TO THE GUARDIAN MAY BE APPROVED AND PAID BY THE CONSERVATOR WITHOUT ORDER OF THE COURT.

E. IN THE INTEREST OF DEVELOPING SELF-RELIANCE ON THE PART OF A WARD OR FOR OTHER GOOD CAUSE, THE COURT, AT THE TIME OF APPOINTMENT OR LATER, ON ITS OWN MOTION OR ON APPROPRIATE PETITION OR MOTION OF THE MINOR OR OTHER INTERESTED PERSON MAY:

1. CREATE A LIMITED GUARDIANSHIP BY LIMITING THE POWERS OF A GUARDIAN OTHERWISE CONFERRED BY THIS SECTION. ANY LIMITATION ON THE STATUTORY POWER OF A GUARDIAN OF A MINOR MUST BE ENDORSED ON THE GUARDIAN'S LETTERS.

2. REMOVE A LIMITATION AND ISSUE REVISED LETTERS.

Sec. 6. Section 14-5210, Arizona Revised Statutes, is amended to read:

14-5210 . Termination of appointment of guardian; general

A guardian's authority and responsibility terminates upon ON the death, resignation or removal of the guardian or upon ON the minor's death, adoption, marriage or attainment of majority. , but Termination does not affect his THE GUARDIAN'S liability for prior acts , nor his OR THE GUARDIAN'S obligation to account for funds THE WARD'S MONIES and assets of his ward . Resignation of a guardian does not terminate the guardianship until it has been approved by the court. A testamentary appointment under an informally probated will terminates if the will is later denied probate in a formal proceeding.

Sec. 7. Section 14-5212, Arizona Revised Statutes, is amended to read:

14-5212 . Resignation or removal proceedings

A. Any person interested in the welfare of a ward or the ward, if fourteen or more years of age, may petition for removal of a guardian on the ground that removal would be in the best interests of the ward, OR FOR ANY OTHER ORDER THAT IS IN THE BEST INTEREST OF THE WARD . A guardian may petition for permission to resign. A petition for removal or for permission to resign may, but need not, include a request for appointment of a successor guardian.

B. NOTICE OF A HEARING ON A PETITION FOR AN ORDER SUBSEQUENT TO APPOINTMENT SHALL BE GIVEN TO A WARD WHO IS AT LEAST FOURTEEN YEARS OF AGE, THE GUARDIAN AND ANY OTHER PERSON THE COURT ORDERS TO RECEIVE THE NOTICE.

B. C. After notice and A hearing on a petition for removal or for permission to resign, the court may terminate the guardianship and make any further order that may be appropriate.

C. D. If, at any time in the proceeding, the court determines that the interests of the ward are, or may be, inadequately represented, it may appoint an attorney to represent the minor, giving consideration to the preference of the minor if the minor is fourteen or more years of age.

Sec. 8. Section 14-5303, Arizona Revised Statutes, is amended to read:

14-5303 . Procedure for court appointment of a guardian of an incapacitated person

A. The ALLEGED incapacitated person or any person interested in his THAT PERSON'S AFFAIRS OR welfare may petition for a finding of incapacity and appointment of a guardian THE APPOINTMENT OF A GUARDIAN OR FOR ANY OTHER APPROPRIATE PROTECTIVE ORDER .

B. THE PETITION SHALL STATE, TO THE EXTENT KNOWN:

1. THE INTEREST OF THE PETITIONER.

2. THE NAME, AGE, RESIDENCE AND ADDRESS OF THE ALLEGED INCAPACITATED PERSON.

3. THE NAME, ADDRESS AND PRIORITY FOR APPOINTMENT OF THE PERSON WHOSE APPOINTMENT IS SOUGHT.

4. THE NAME AND ADDRESS OF THE CONSERVATOR, IF ANY, OF THE ALLEGED INCAPACITATED PERSON.

5. THE NAME AND ADDRESS OF THE NEAREST RELATIVE OF THE ALLEGED INCAPACITATED PERSON KNOWN TO THE PETITIONER.

6. A GENERAL STATEMENT OF THE PROPERTY OF THE ALLEGED INCAPACITATED PERSON, WITH AN ESTIMATE OF ITS VALUE AND INCLUDING ANY COMPENSATION, INSURANCE, PENSION OR ALLOWANCE TO WHICH THE PERSON IS ENTITLED.

7. THE REASON WHY APPOINTMENT OF A GUARDIAN OR ANY OTHER PROTECTIVE ORDER IS NECESSARY.

B. C. Upon the filing of a petition, the court shall set a hearing date on the issues of incapacity. and, Unless the allegedly ALLEGED incapacitated person has IS REPRESENTED BY INDEPENDENT counsel of his own choice, it , THE COURT shall appoint an attorney to represent him THAT PERSON in the proceeding. The person alleged to be incapacitated PERSON shall be interviewed by an investigator appointed by the court and shall be examined by a physician, psychologist or registered nurse appointed by the court. The investigator and the person conducting the examination shall submit their reports in writing to the court. In addition to information required under subsection C of this section, the court may direct that either report include other information the court deems appropriate. The investigator also shall interview the person seeking appointment as guardian, visit the present place of abode of the person alleged to be incapacitated PERSON and the place where it is proposed that he PERSON will be detained or reside if the requested appointment is made and submit a report in writing to the court. The person alleged to be incapacitated PERSON is entitled to be present at the hearing in person and to see or hear all evidence bearing upon his ON THAT PERSON 'S condition. He THE ALLEGED INCAPACITATED PERSON is entitled to be represented by counsel, to present evidence, to cross-examine witnesses, including the court-appointed examiner and investigator, and to trial by jury. The issue COURT may be determined DETERMINE THE ISSUE at a closed hearing if the person alleged to be incapacitated PERSON or his THAT PERSON'S counsel so requests.

C. D. A report filed pursuant to this section by a physician, psychologist or registered nurse acting within that person's scope of practice shall include the following information:

1. A specific description of the physical, psychiatric or psychological diagnosis of the person.

2. A comprehensive assessment listing any functional impairments of the ALLEGED INCAPACITATED person and an explanation of how and to what extent these functional impairments may prevent that person from receiving or evaluating information in making decisions or in communicating informed decisions regarding himself THAT PERSON .

3. An analysis of the tasks of daily living the ALLEGED INCAPACITATED person is capable of performing without direction or with minimal direction.

4. A list of all medications the ALLEGED INCAPACITATED person is receiving, the dosage of the medications and a description of the effects each medication has on the person's behavior to the best of the declarant's knowledge.

5. A prognosis for improvement in the ALLEGED INCAPACITATED person's condition and a recommendation for the most appropriate rehabilitation plan or care plan.

6. Other information the physician, psychologist or registered nurse deems appropriate.

Sec. 9. Section 14-5309, Arizona Revised Statutes, is amended to read:

14-5309 . Notices in guardianship proceedings

A. In a proceeding for the appointment or removal of a guardian of A WARD OR an ALLEGED incapacitated person other than the appointment of a temporary guardian or temporary suspension of a guardian, notice of A hearing shall be given to each of the following:

1. The ward or the ALLEGED INCAPACITATED person alleged to be incapacitated and his THAT PERSON'S spouse, parents and adult children.

2. Any person who is serving as his guardian or conservator or who has his THE care and custody OF THE WARD OR THE ALLEGED INCAPACITATED PERSON .

3. In case no other person is notified under paragraph 1 of this subsection, at least one of his THAT PERSON'S closest adult relatives, if any can be found.

4. ANY PERSON WHO HAS FILED A DEMAND FOR NOTICE.

B. Notice shall be served personally on the WARD OR THE alleged incapacitated person, and his THAT PERSON'S spouse and parents if they can be found within the state. Notice to the spouse and parents, if they cannot be found within the state, and to all other persons except the WARD OR THE alleged incapacitated person shall be given as provided in section 14-1401. Waiver of notice by the WARD OR THE ALLEGED INCAPACITATED person alleged to be incapacitated is not effective unless he THAT PERSON attends the hearing or his waiver of notice is confirmed in an interview with the investigator. Representation of the alleged incapacitated person by a guardian ad litem is not necessary .

Sec. 10. Section 14-5310, Arizona Revised Statutes, is amended to read:

14-5310 . Temporary guardians; appointment; notice; court appointed attorney hearings; duties

A. If an ALLEGED incapacitated person has no guardian and an emergency exists or if an appointed guardian is not effectively performing his THE duties OF A GUARDIAN and the welfare of the ward is found to require immediate action, the ALLEGED incapacitated person , THE WARD or any person interested in his THE welfare OF THE ALLEGED INCAPACITATED PERSON OR THE WARD may petition for a finding of interim incapacity and for the appointment of a temporary guardian. No finding and appointment may be made without notice, pursuant to section 14-5309, except as provided in subsection B of this section.

B. The court may enter a finding of interim incapacity and may appoint a temporary guardian without notice to the proposed ward or the proposed ward's attorney ONLY if all of the following conditions are met:

1. It clearly appears from specific facts shown by an affidavit or by the verified petition that immediate and irreparable injury, loss or damage will result before the proposed ward or the proposed ward's attorney can be heard in opposition.

2. The petitioner or his THE PETITIONER'S attorney certifies to the court in writing any efforts that the petitioner or his THE PETITIONER'S attorney has made to give the notice or the reasons supporting the claim that notice should not be required.

3. The petitioner files with the court a request for a hearing on the petition for the appointment of a temporary guardian.

4. The petitioner or his THE PETITIONER'S attorney certifies that he THAT PERSON will give notice OF THE PETITION, THE ORDER AND ALL FILED REPORTS AND AFFIDAVITS to the PROPOSED ward by personal service of the petition and order, as well as all filed reports and affidavits within the time period the court directs but not in excess of seventy-two hours following entry of the order of appointment.

5. The petitioner files a report from a physician or a psychologist detailing the need for a guardian and the basis for the emergency unless the report is waived by the court on a showing of good cause by a party to the action.

C. Unless the proposed ward has IS REPRESENTED BY independent counsel of his own choice , the court shall appoint an attorney to represent him THE PROPOSED WARD in the proceeding on receipt of the petition for temporary appointment. The attorney shall visit the PROPOSED ward as soon as practicable and shall be prepared to represent the interest of the PROPOSED ward at any hearing on the petition.

D. Every order finding interim incapacity and appointing a temporary guardian granted without notice expires as prescribed by the court but within a period of not more than thirty days unless within that time the court extends it for good cause shown for the same period or unless the attorney for the ward consents that it may be extended for a longer period. The court shall enter the reasons for the extension on the record.

E. The court shall schedule a hearing on the petition for a finding of interim incapacity and the appointment of a temporary guardian within the time specified in subsection D of this section. If the petitioner does not proceed with the petition the court, on the motion of any party or on its own motion, may dismiss the petition.

F. If the court orders the appointment of a temporary guardian without notice, the ward may appear and move FOR its dissolution or modification on two days' notice to the petitioner and to the temporary guardian or on such shorter notice as the court prescribes. The court shall proceed to hear and determine that motion as expeditiously as possible.

G. The hearing on a petition for the appointment of a temporary guardian shall be held in the same manner as a hearing on a preliminary injunction. The court may order the hearing on the petition for appointment of a permanent guardian to be advanced and consolidated with the hearing of the petition for temporary appointment. If the court does not order this consolidation any evidence received on a petition for temporary appointment that would be admissible at the hearing on a petition for a permanent appointment becomes part of the record and need not be repeated at a later hearing. This subsection does not limit the parties to any rights they may have to trial by jury.

H. After notice and a hearing, if the court finds that a temporary guardian is necessary and the provisions of this section have been met, the court shall make an appointment of a temporary guardian for a specific purpose and for a specific period of time of not more than six months unless the court extends this time period for good cause shown.

I. A temporary guardian is responsible to provide the care and custody of the ward. The authority of a permanent guardian previously appointed by the court is suspended as long as the temporary guardian has authority. A temporary guardian may be removed at any time. A temporary guardian shall make any report the court requires. In all other respects, the provisions of this title concerning guardians apply to temporary guardians.

Sec. 11. Section 14-5311, Arizona Revised Statutes, is amended to read:

14-5311 . Who may be guardian; priorities

A. Any competent QUALIFIED person may be appointed guardian of an incapacitated person, subject to the requirements of section 14-5106.

B. THE COURT MAY CONSIDER THE FOLLOWING persons who are not disqualified have priority for appointment as guardian in the following order:

1. A GUARDIAN OR CONSERVATOR OF THE PERSON OR A FIDUCIARY APPOINTED OR RECOGNIZED BY THE APPROPRIATE COURT OF ANY JURISDICTION IN WHICH THE INCAPACITATED PERSON RESIDES.

2. An individual or corporation nominated by the incapacitated person if the person has, in the opinion of the court, sufficient mental capacity to make an intelligent choice.

3. THE PERSON NOMINATED IN THE INCAPACITATED PERSON'S MOST RECENT DURABLE POWER OF ATTORNEY.

1. 4. The spouse of the incapacitated person.

3. 5. An adult child of the incapacitated person.

4. 6. A parent of the incapacitated person, including a person nominated by will or other writing signed by a deceased parent.

5. 7. Any relative of the incapacitated person with whom he THE INCAPACITATED PERSON has resided for more than six months prior to the filing of the petition.

6. 8. The nominee of a person who is caring for the incapacitated person or paying benefits to him.

7. 9. A private fiduciary, professional guardian, conservator or the Arizona veterans' service commission.

C. The court may give preference for the appointment of a family member unless this is contrary to the expressed wishes of the incapacitated person or is not in his best interest as determined by the court.

C. A PERSON LISTED IN SUBSECTION B, PARAGRAPH 4, 5, 6, 7 OR 8 MAY NOMINATE IN WRITING A PERSON TO SERVE IN THAT PERSON'S PLACE. WITH RESPECT TO PERSONS WHO HAVE EQUAL PRIORITY, THE COURT SHALL SELECT THE ONE THE COURT DETERMINES IS BEST QUALIFIED TO SERVE.

D. FOR GOOD CAUSE THE COURT MAY PASS OVER A PERSON WHO HAS PRIORITY AND APPOINT A PERSON WHO HAS A LOWER PRIORITY OR NO PRIORITY.

Sec. 12. Section 14-5313, Arizona Revised Statutes, is amended to read:

14-5313 . Proceedings subsequent to appointment; venue

A. The court AT THE PLACE where the ward resides has concurrent jurisdiction with the court THAT APPOINTED THE GUARDIAN OR in which acceptance of A PARENTAL OR SPOUSAL appointment is WAS filed, over resignation, removal, accounting and other proceedings relating to the guardianship INCLUDING PROCEEDINGS TO LIMIT THE AUTHORITY PREVIOUSLY CONFERRED ON A GUARDIAN OR TO REMOVE LIMITATIONS PREVIOUSLY IMPOSED .

B. If the court located AT THE PLACE where the ward resides is not the court in which acceptance of appointment is filed, the court in which proceedings subsequent to appointment are commenced shall in all appropriate cases notify the other court, in this or another state, and after consultation with that court SHALL determine whether to retain jurisdiction or transfer the proceedings to the other court, whichever may be in the best interests of the ward. A copy of any order accepting a resignation , or removing a guardian OR ALTERING AUTHORITY shall be sent to the court in which acceptance of appointment is filed.

Sec. 13. Section 14-5401, Arizona Revised Statutes, is amended to read:

14-5401 . Protective proceedings

Upon petition and after notice and A hearing in accordance with the provisions of this article, the court may appoint a conservator or make another protective order for cause as follows:

1. Appointment of a conservator or other protective order may be made in relation to the estate and affairs of a minor if the court determines that a minor owns money or property that requires management or protection which cannot otherwise be provided or has or may have business affairs which may be jeopardized or prevented by his minority or that funds are needed for his support and education and that protection is necessary or desirable to obtain or provide funds.

2. Appointment of a conservator or other protective order may be made in relation to the estate and affairs of a person if the court determines that both OF THE FOLLOWING :

(a) The person is unable to manage his property THE PERSON'S ESTATE and affairs effectively for reasons such as mental illness, mental deficiency, mental disorder, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power or disappearance.

(b) The person has property which will be wasted or dissipated unless proper management is provided, or that funds are needed for the support, care and welfare of the person or those entitled to be supported by him THE PERSON and that protection is necessary or desirable to obtain or provide funds.

Sec. 14. Section 14-5401.01, Arizona Revised Statutes, is amended to read:

14-5401.01 . Temporary conservators; appointment; notice; hearings

A. If a person in need of protection has no conservator and an emergency exists or if an appointed conservator is not effectively performing his THE duties OF A CONSERVATOR and the welfare ESTATE OR AFFAIRS of the ward is PROTECTED PERSON ARE found to require immediate action, the proposed ward PERSON IN NEED OF PROTECTION, THE PROTECTED PERSON or any person interested in his welfare THAT PERSON'S ESTATE OR AFFAIRS may petition for a finding of a need for interim protection and for the appointment of a temporary conservator. No finding and appointment may be made without notice, pursuant to section 14-5405, except as provided in subsection B of this section.

B. The court may enter a finding of a need for interim protection and may appoint a temporary conservator without notice to the proposed ward PROTECTED PERSON or the proposed ward's PROTECTED PERSON'S attorney if all of the following conditions are met:

1. It clearly appears from specific facts shown by affidavit or by the verified petition that immediate and irreparable injury, loss or damage will result before the proposed ward PROTECTED PERSON or the proposed ward's THAT PERSON'S attorney can be heard in opposition.

2. The petitioner or his THE PETITIONER'S attorney certifies to the court in writing any efforts that the petitioner or his THE attorney has made to give the notice or the reasons supporting the claim that notice should not be required.

3. The petitioner files with the court a request for a hearing on the petition for the appointment of a temporary conservator.

4. The petitioner or his THE PETITIONER'S attorney certifies that he will give notice OF THE PETITION, ORDER AND ALL FILED REPORTS AND AFFIDAVITS WILL BE GIVEN to the ward PROPOSED PROTECTED PERSON by personal service of the petition, all filed reports and affidavits and the order within seventy-two hours or within the time period the court directs for good cause shown BUT NOT MORE THAN SEVENTY-TWO HOURS AFTER ENTRY OF THE ORDER OF APPOINTMENT .

C. Unless the proposed ward has PROTECTED PERSON IS REPRESENTED BY independent counsel of his own choice , the court shall appoint an attorney to represent him THAT PERSON in the proceeding on receipt of the petition for temporary appointment. The attorney shall visit the ward PROPOSED PROTECTED PERSON as soon as practicable and shall be prepared to represent the THAT PERSON'S interests of the ward at any hearing on the petition.

D. Every order finding a need for interim protection and appointing a temporary conservator granted without notice expires as prescribed by the court but within a period of not more than thirty days unless within that time the court extends it for good cause shown for the same period or unless the attorney for the ward PROPOSED PROTECTED PERSON consents that it may be extended for a longer period. The court shall enter the reasons for the extension on the record.

E. The court shall schedule a hearing on the petition for a finding of the need for interim protection and the appointment of a temporary conservator within the time specified in subsection D of this section. If the petitioner does not proceed with the petition the court, on the motion of any party or on its own motion, may dismiss the petition.

F. If the court orders the appointment of a temporary conservator without notice, the ward PROPOSED PROTECTED PERSON may appear and move FOR its dissolution or modification on two days' notice to the petitioner and to the temporary conservator, or on such shorter notice as the court prescribes. The court shall proceed to hear and determine that motion as expeditiously as possible.

G. The hearing on a petition for the appointment of a temporary conservator shall be held in the same manner as a hearing on a preliminary injunction. The court may order the hearing on the petition for appointment of a permanent conservator to be advanced and consolidated with the hearing of the petition for temporary appointment. If the court does not order this consolidation any evidence received on a petition for temporary appointment that would be admissible at the hearing on a petition for a permanent appointment becomes part of the record and need not be repeated at a later hearing. This subsection does not limit the parties to any rights they may have to trial by jury.

H. After notice and a hearing, if the court finds that a temporary conservator is necessary and the provisions of this section have been met, the court shall make an appointment of a temporary conservator for a specified period of time of not more than six months unless the court extends this time period for good cause shown.

Sec. 15. Section 14-5402, Arizona Revised Statutes, is amended to read:

14-5402 . Protective proceedings; jurisdiction of affairs of protected persons

After the service of notice in a proceeding seeking the appointment of a conservator or other protective order and until termination of the proceeding, the court in which the petition is filed has:

1. Exclusive jurisdiction to determine the need for a conservator or other protective order until the proceedings are terminated.

2. Exclusive jurisdiction to determine how the estate of the protected person which is subject to the laws of this state shall be managed, expended or distributed to or for the use of the protected person , or any of his THE PROTECTED PERSON'S dependents OR OTHER CLAIMANTS .

3. Concurrent jurisdiction to determine the validity of claims against the person or estate of the protected person and his QUESTIONS OF title to CONCERNING any property or claim ESTATE ASSET .

Sec. 16. Section 14-5404, Arizona Revised Statutes, is amended to read:

14-5404 . Original petition for appointment or protective order

A. The person to be protected ALLEGEDLY IN NEED OF PROTECTION , any person who is interested in his THAT PERSON'S estate , OR affairs or welfare , including his THAT PERSON'S parent, guardian or custodian, or any person who would be adversely affected by lack of effective management of his property THAT PERSON'S ESTATE and affairs may petition for the appointment of a conservator or for ANY other appropriate protective order.

B. The petition shall set forth, to the extent known:

1. The interest of the petitioner.

2. The name, age, residence and address of the person to be protected ALLEGEDLY IN NEED OF PROTECTION .

3. THE NAME, ADDRESS AND PRIORITY FOR APPOINTMENT OF THE PERSON WHOSE APPOINTMENT IS SOUGHT.

3. 4. The name and address of the guardian, if any, of the person to be protected ALLEGEDLY IN NEED OF PROTECTION .

4. 5. The name and address of the nearest relative OF THE PERSON ALLEGEDLY IN NEED OF PROTECTION known to the petitioner.

5. 6. A general statement of the property ESTATE of the person to be protected ALLEGEDLY IN NEED OF PROTECTION with an estimate of the ITS value thereof , including any compensation, insurance, pension or allowance to which he THE PERSON is entitled.

6. 7. The reason why appointment of a conservator or ANY other protective order is necessary. If the appointment of a conservator is requested, the petition also shall set forth the name and address of the person whose appointment is sought and the basis of his priority for appointment.

Sec. 17. Section 14-5405, Arizona Revised Statutes, is amended to read:

14-5405 . Notice in conservatorship proceedings

A. IN A PROCEEDING FOR THE APPOINTMENT OR REMOVAL OF A CONSERVATOR OF A PROTECTED PERSON OR PERSON ALLEGEDLY IN NEED OF PROTECTION, OTHER THAN THE APPOINTMENT OF A TEMPORARY CONSERVATOR OR TEMPORARY SUSPENSION OF A CONSERVATOR, NOTICE OF THE HEARING SHALL BE GIVEN TO EACH OF THE FOLLOWING:

1. THE PROTECTED PERSON OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION.

2. THE SPOUSE, PARENTS AND ADULT CHILDREN OF THE PROTECTED PERSON OR PERSON ALLEGEDLY IN NEED OF PROTECTION, OR IF NO SPOUSE, PARENTS OR ADULT CHILDREN CAN BE LOCATED, AT LEAST ONE ADULT RELATIVE OF THE PROTECTED PERSON OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION, IF SUCH A RELATIVE CAN BE FOUND.

3. ANY PERSON WHO IS SERVING AS GUARDIAN OR CONSERVATOR OR WHO HAS THE CARE AND CUSTODY OF THE PROTECTED PERSON OR PERSON ALLEGEDLY IN NEED OF PROTECTION.

4. ANY PERSON WHO HAS FILED A DEMAND FOR NOTICE.

A. B. If the person to be protected is fourteen years of age or older he and his spouse or his parents if he is unmarried NOTICE shall be served personally with notice of the proceeding at least fourteen days before the date of the hearing ON THE PROTECTED PERSON OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION AND THAT PERSON'S SPOUSE AND PARENTS if they can be found within the state. NOTICE TO THE SPOUSE AND PARENTS, if they cannot be found within the state they , AND TO ALL OTHER PERSONS EXCEPT THE PROTECTED PERSON OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION shall be given notice in accordance with section 14-1401. Waiver OF NOTICE by the PROTECTED person to be protected OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION is not effective unless he THE PROTECTED PERSON OR THE PERSON ALLEGEDLY IN NEED OF PROTECTION attends the hearing or, unless minority is the reason for the proceeding, the waiver is confirmed in an interview with the investigator .

B. Notice of a petition for appointment of a conservator or any other initial protective order and of any subsequent hearing shall be given to any person who has filed a request for notice under section 14-5406 and to interested persons and other persons as the court may direct. Except as otherwise provided in subsection A of this section, notice shall be given in accordance with section 14-1401.

Sec. 18. Section 14-5406, Arizona Revised Statutes, is amended to read:

14-5406 . Protective proceedings; request for notice; interested person

ON PAYMENT OF ANY REQUIRED FEE, any interested person who desires to be notified before any order is made in a protective GUARDIANSHIP OR CONSERVATORSHIP proceeding , INCLUDING ANY PROCEEDING SUBSEQUENT TO THE APPOINTMENT OF A GUARDIAN PURSUANT TO SECTION 14-5313, OR SUBSEQUENT TO THE APPOINTMENT OF A CONSERVATOR PURSUANT TO SECTION 14-5416, may file with the clerk a request A DEMAND for notice subsequent to payment of any fee required by statute or court rule WITH THE CLERK OF THE COURT IN WHICH THE PROCEEDING IS PENDING . The person requesting DEMANDING notice shall mail a copy of the demand to the GUARDIAN AND THE conservator if one has been appointed. A request DEMAND is not effective unless it contains a statement showing the interest of the person making it and his THE PERSON'S address, or that of his THE PERSON'S attorney, and is effective only as to matters occurring after the filing. Any governmental agency paying or planning to pay benefits to the person to be protected is an interested person in protective proceedings.

Sec. 19. Section 14-5407, Arizona Revised Statutes, is amended to read:

14-5407 . Procedure concerning hearing and order on original petition

A. Upon receipt ON THE FILING of a petition for appointment of a conservator or any other protective order because of minority, the court shall set a date for a hearing DATE on the matters alleged in the petition. If, at any time in the proceeding, the court determines that the interests of the minor are or may be inadequately represented, it shall appoint an attorney to represent the minor. If the minor is at least fourteen years of age the court shall consider the choice of the minor.

B. Upon receipt ON THE FILING of a petition for appointment of a conservator or any other protective order for reasons other than minority, the court shall set a date for a hearing DATE . After the hearing, upon a finding that a basis for the appointment of a conservator or any other protective order has been established, the court shall make an appointment or other appropriate protective order. Unless the person to be protected has counsel of his own choice, the court shall appoint an attorney to represent him. If the alleged disability is mental illness, mental deficiency, mental disorder, physical illness or disability, chronic use of drugs, or chronic intoxication, the court shall appoint an investigator to interview the person to be protected. On petition by an interested person or on the court's own motion, the court shall MAY direct that an appropriate medical or psychological evaluation of the person be conducted. The investigator and the person conducting the medical or psychological evaluation shall submit written reports to the court before the hearing date. The person to be protected is entitled to be present at the hearing in person, to see or hear all evidence bearing upon his condition, to be represented by counsel, to present evidence and to cross-examine witnesses, including any person appointed by the court. The issue may be determined at a closed hearing if the person alleged to be in need of protection or his counsel so requests.

C. In any case where the veterans administration is or may be an interested party, a certificate of an authorized official of the veterans administration that the person to be protected ALLEGEDLY IN NEED OF PROTECTION has been found incapable of handling the benefits payable, on examination in accordance with the laws and regulations governing the veterans administration, is prima facie evidence of the necessity for appointment of a conservator.

D. THE PERSON ALLEGEDLY IN NEED OF PROTECTION IS ENTITLED TO BE PRESENT AT THE HEARING, TO BE REPRESENTED BY COUNSEL, TO PRESENT EVIDENCE AND TO CROSS-EXAMINE WITNESSES, INCLUDING ANY COURT APPOINTED EXAMINER AND INVESTIGATOR. THE ISSUE MAY BE DETERMINED AT A CLOSED HEARING IF THE PERSON ALLEGEDLY IN NEED OF PROTECTION OR THAT PERSON'S COUNSEL SO REQUESTS.

E. AFTER THE HEARING, UPON A FINDING THAT A BASIS FOR THE APPOINTMENT OF A CONSERVATOR OR ANY OTHER PROTECTIVE ORDER HAS BEEN ESTABLISHED, THE COURT SHALL MAKE AN APPOINTMENT OR OTHER APPROPRIATE PROTECTIVE ORDER.

Sec. 20. Section 14-5408, Arizona Revised Statutes, is amended to read:

14-5408 . Permissible court orders

A. The court has the following powers which may be exercised directly or through a conservator in respect to the estate and affairs of protected persons:

1. While a petition for appointment of a conservator or ANY other protective order is pending and after A preliminary hearing and without notice to others, the court has power to preserve and apply the property ESTATE of the person to be protected ALLEGEDLY IN NEED OF PROTECTION as may be required for his THAT PERSON'S benefit or the benefit of his THAT PERSON'S dependents.

2. After A hearing and upon determining that a basis for an appointment or ANY other protective order exists with respect to a minor without other disability, the court has all those powers over the estate and affairs of the minor which are or might be necessary for the best interests of the minor, his THE MINOR'S family and members of his THE MINOR'S household.

3. After A hearing and upon determining that a basis for an appointment or ANY other protective order exists with respect to a person for reasons other than minority, the court has, for the benefit of the PROTECTED person and members of his THAT PERSON'S household, all the powers over his estate and affairs which he THE PROTECTED PERSON could exercise if present and not under disability, except the power to make a will or to make gifts other than those authorized by this section.

4. The court has power to make gifts to such donees and in such amounts as would continue a program of giving established by the protected person prior to disability, if, after notice and hearing, the court is satisfied that the making of gifts is in the best interests of the protected person and that he either is incapable of consenting or has consented to the proposed gifts.

4. AFTER NOTICE AND A HEARING THE COURT MAY AUTHORIZE THE CONSERVATOR TO MAKE GIFTS ON BEHALF OF THE PROTECTED PERSON OUT OF THE ESTATE OF THE PROTECTED PERSON TO DONEES AND IN AMOUNTS THAT ARE CONSISTENT WITH THE PROTECTED PERSON'S BEST INTERESTS AND INTENTIONS. IN DETERMINING IF THESE GIFTS ARE IN THE PROTECTED PERSON'S BEST INTERESTS THE COURT SHALL CONSIDER:

( a ) THE PROTECTED PERSON'S ESTATE PLAN, IF ANY.

( b ) THE PROTECTED PERSON'S PATTERN OF PRIOR GIFTS, IF ANY.

( c ) THE POTENTIAL TAX SAVINGS THAT WOULD RESULT IF A GIFT WERE AUTHORIZED.

( d ) THE SIZE OF THE ESTATE.

( e) THE PROTECTED PERSON'S INCOME AND EXPENSES.

(f) THE PHYSICAL AND MENTAL CONDITION AND LIFE EXPECTANCY OF THE PROTECTED PERSON.

(g) THE LIKELIHOOD THAT THE PROTECTED PERSON'S DISABILITY MAY CEASE.

(h) THE LIKELIHOOD THAT THE PROTECTED PERSON WOULD MAKE THE GIFT IF THE PERSON WERE ABLE TO CONSENT.

(i) THE ABILITY OF THE PROTECTED PERSON TO CONSENT TO THE PROPOSED GIFTS.

B. An order made pursuant to this section determining that a basis for appointment of a conservator or other protective order exists has no effect on the capacity of the protected person.

C. To encourage the self-reliance and independence of a ward PROTECTED PERSON , the court may grant the ward PROTECTED PERSON the capacity ABILITY to handle part of his THE PROTECTED PERSON'S money or other property without the consent or supervision of the conservator. This may include allowing the ward PROTECTED PERSON to maintain appropriate accounts in a ANY bank or other financial institution.

Sec. 21. Section 14-5409, Arizona Revised Statutes, is amended to read:

14-5409 . Protective arrangements and single transactions authorized

A. If it is established in a proper proceeding that a basis exists as described in section 14-5401 for affecting the property ESTATE and affairs of a person the court, without appointing a conservator, may authorize, direct or ratify any transaction necessary or desirable to achieve any security, service or care arrangement meeting the foreseeable needs of the protected person. Protective arrangements include, but are not limited to, payment, delivery, deposit or retention of funds or property, sale, mortgage, lease or other transfer of property, entry into an annuity contract, a contract for life care, a deposit contract, a contract for training and education, or addition to or establishment of a suitable trust.

B. When it has been established in a proper proceeding that a basis exists as described in section 14-5401 for affecting the property ESTATE and affairs of a person the court, without appointing a conservator, may authorize, direct or ratify any contract, trust or other transaction relating to the protected person's financial affairs or involving his THE PROTECTED PERSON'S estate if the court determines that the transaction is in the best interests of the protected person.

C. Before approving a protective arrangement or other transaction under this section, the court shall consider the interests of creditors and dependents of the protected person and, in view of his THE PROTECTED PERSON'S disability, whether the protected person needs the continuing protection of a conservator. The court may appoint a special conservator to assist in the accomplishment of any protective arrangement or other transaction authorized under this section who shall have the authority conferred by the order and serve until discharged by order after report to the court of all matters done pursuant to the order of appointment.

Sec. 22. Section 14-5410, Arizona Revised Statutes, is amended to read:

14-5410 . Who may be appointed conservator; priorities

A. The court may appoint an individual or a corporation, with general power to serve as trustee, as conservator of the estate of a protected person subject to the requirements of section 14-5106. The following are entitled to consideration for appointment in the order listed:

1. A conservator, guardian of property or other like fiduciary appointed or recognized by the appropriate court of any other jurisdiction in which the protected person resides.

2. An individual or corporation nominated by the protected person if he THE PROTECTED PERSON is AT LEAST fourteen or more years of age and has, in the opinion of the court, sufficient mental capacity to make an intelligent choice.

3. THE PERSON NOMINATED IN THE PROTECTED PERSON'S MOST RECENT DURABLE POWER OF ATTORNEY.

3. 4. The spouse of the protected person.

4. 5. An adult child of the protected person.

5. 6. A parent of the protected person, or a person nominated by the will of a deceased parent.

6. 7. Any relative of the protected person with whom he THE PROTECTED PERSON has resided for more than six months prior to the filing of the petition.

7. 8. The nominee of a person who is caring for OR PAYING BENEFITS TO the protected person or paying benefits to him .

9. A PRIVATE FIDUCIARY, PROFESSIONAL GUARDIAN OR CONSERVATOR OR THE VETERANS' SERVICE COMMISSION.

B. A person LISTED in priorities 1, 3, 4, 5 or 6 SUBSECTION A, PARAGRAPH 4, 5, 6, 7 OR 8 OF THIS SECTION may nominate in writing a person to serve in his stead THAT PERSON'S PLACE . With respect to persons having equal priority, the court is to SHALL select the one who IT DETERMINES is best qualified of those willing to serve. The court, for good cause, may pass over a person having priority and appoint a person having less A LOWER priority or no priority.

Sec. 23. Section 14-5411, Arizona Revised Statutes, is amended to read:

14-5411 . Bond; exception

A. Except as otherwise provided in subsection B, the court shall require a conservator to furnish a bond conditioned upon faithful discharge of all duties of the trust according to law, with sureties as it shall specify. Unless otherwise directed, the bond shall be in the amount of the aggregate capital value of the property of the estate in his THE CONSERVATOR'S control plus one year's estimated income minus the value of securities deposited under arrangements requiring an order of the court for their removal and the value of any land which the fiduciary, by express limitation of power, lacks power to sell or convey without court authorization. FOR GOOD CAUSE SHOWN THE COURT MAY REDUCE OR ELIMINATE THE BOND TO THE EXTENT OF REGULAR FIXED EXPENSES PAID FOR THE BENEFIT OF THE PROTECTED PERSON. The court in lieu of sureties on a bond may accept other security for the performance of the bond, including a pledge of securities or a mortgage of land.

B. A bond is not required of a conservator which is a national banking association, a holder of a banking permit under the laws of this state, a savings and loan association authorized to conduct trust business in this state, a title insurance company qualified to do business under the laws of this state, a trust company holding a certificate to engage in trust business from the state superintendent of banks or the public fiduciary.

Sec. 24. Section 14-5412, Arizona Revised Statutes, is amended to read:

14-5412 . Terms and requirements of bonds

A. The following requirements and provisions apply to any bond required under section 14-5411:

1. Unless otherwise provided by the terms of the approved bond, sureties are jointly and severally liable with the conservator and with each other.

2. By executing an approved bond of a conservator, the surety consents to the jurisdiction of the court which issued letters to the primary obligor in any proceeding pertaining to the fiduciary duties of the conservator and naming the surety as a party defendant RESPONDENT . Notice of any proceeding shall be delivered to the surety or mailed to him by registered or certified mail at his TO THE address as listed with the court AT THE PLACE where the bond is filed and to his THE address as then known to the petitioner.

3. On petition of a successor conservator or any interested person, a proceeding may be initiated against a surety for breach of the obligation of the bond of the conservator.

4. The bond of the conservator is not void after the first recovery but may be proceeded against from time to time until the whole penalty is exhausted.

B. No proceeding may be commenced against the surety on any matter as to which an action or proceeding against the primary obligor is barred by adjudication or limitation.

Sec. 25. Section 14-5416, Arizona Revised Statutes, is amended to read:

14-5416 . Petitions for orders subsequent to appointment

A. Any person interested in the welfare ESTATE OR AFFAIRS of a person for whom a conservator has been appointed may file a petition in the appointing court for an order:

1. Requiring bond or security or additional bond or security, or reducing bond.

2. Requiring an accounting for the administration of the trust ESTATE OF THE PROTECTED PERSON .

3. Directing distribution.

4. Removing the conservator and appointing a temporary or successor conservator.

5. Granting other appropriate relief.

B. A conservator may petition the appointing court for instructions concerning his fiduciary THE FIDUCIARY'S responsibility.

C. Upon notice to the person for whom a conservator has been appointed and to such other persons as the court may designate and upon a hearing, AND A HEARING the court may give appropriate instructions or make any appropriate order.

D. When a surety of a conservator desires to be released from responsibility for future acts, he THE SURETY may apply to the court for a release. The court shall proceed in the same manner as in a proceeding under section 14-3604, subsection B. Notice shall be given to the conservator as provided in section 14-5413.

Sec. 26. Section 14-5418, Arizona Revised Statutes, is amended to read:

14-5418 . Inventory and records

A. Within ninety days after his appointment, a conservator shall prepare and file with the court an inventory of the property ESTATE owned by the protected person on the date of the conservator's appointment, listing it with reasonable detail and indicating the fair market value as of the date of appointment of each item listed.

B. The conservator shall provide a copy of the inventory to the protected person if he THE PROTECTED PERSON can be located, has attained the age of fourteen years, and has sufficient mental capacity to understand these matters, and to any parent or guardian with whom the protected person resides. The conservator shall keep suitable records of his THE CONSERVATOR'S administration and exhibit the same RECORDS on request of any interested person.

Sec. 27. Section 14-5419, Arizona Revised Statutes, is amended to read:

14-5419 . Accounts

A. Every conservator must account to the court for his THE administration of the trust ESTATE not less than annually on the anniversary date of his qualification QUALIFYING as conservator and also on resignation or removal, and on termination of the protected person's minority or disability ; provided, however , EXCEPT that for good cause shown upon the application of an interested person, the court may relieve the conservator of filing annual or other accounts by an order entered in the minutes.

B. The court may take such action as is appropriate upon filing of annual or other accounts. In connection with any account, the court may require a conservator to submit to a physical check of the estate in his THE CONSERVATOR'S control, to be made in any manner the court may specify.

C. An adjudication allowing an intermediate or final account can be made only upon petition, notice and A hearing. Notice must be given to:

1. The protected person.

2. A guardian of the protected person if one has been appointed, unless the same person is serving as both guardian and conservator.

3. If no guardian has been appointed or the same person is serving as both guardian and conservator, a spouse or, if the spouse is the conservator, there be no spouse or the spouse is incapacitated, a parent or an adult child who is not serving as a conservator.

4. A guardian ad litem appointed for the protected person, if the court determines in accordance with section 14-1403 that representation of the interest of the protected person would otherwise be inadequate.

D. An order, made upon notice and A hearing, allowing an intermediate account of a conservator, adjudicates as to his THE CONSERVATOR'S liabilities concerning the matters considered in connection therewith. An order, made upon notice and A hearing, allowing a final account adjudicates as to all previously unsettled liabilities of the conservator to the protected person or his THE PROTECTED PERSON'S successors relating to the conservatorship.

E. In any case in which the estate consists, in whole or in part, of benefits paid by the veterans administration to the conservator or his THE CONSERVATOR'S predecessor for the benefit of the protected person, the veterans administration office which has jurisdiction over the area is entitled to a copy of any account filed under chapter 5, article 4 of this title. Each year in which an account is not filed with the court, the conservator shall, if requested, submit an account to the appropriate veterans administration office. If such an account is not submitted as requested, or if it is found unsatisfactory by the veterans administration, the court shall, upon receipt of notice thereof, require the conservator forthwith to file an account with the court.

Sec. 28. Section 14-5420, Arizona Revised Statutes, is amended to read:

14-5420 . Conservators; title by appointment

A. The appointment of a conservator vests in him THE CONSERVATOR title as trustee to all property OR TO THE PART SPECIFIED IN THE ORDER of the protected person, presently held or thereafter acquired, including title to any property previously held for the protected person by custodians or attorneys in fact. AN ORDER SPECIFYING THAT ONLY PART OF THE PROPERTY OF THE PROTECTED PERSON VESTS IN THE CONSERVATOR CREATES A LIMITED CONSERVATORSHIP.

B. The appointment of a conservator is not a transfer or alienation within the meaning of general provisions of any federal or state statute or RULE, regulation, insurance policy, pension plan, contract, will or trust instrument, imposing restrictions upon or penalties for transfer or alienation by the protected person of his THE PERSON'S rights or interest. , but this section does not restrict the ability of persons to make specific provision by contract or dispositive instrument relating to a conservator.

C. EXCEPT AS OTHERWISE PROVIDED BY LAW, THE INTEREST OF THE PROTECTED PERSON IN PROPERTY VESTED IN A CONSERVATOR IS NOT TRANSFERRABLE OR ASSIGNABLE BY THE PROTECTED PERSON.

D. PROPERTY VESTED IN A CONSERVATOR BY THIS SECTION AND THE INTEREST OF THE PROTECTED PERSON IN THAT PROPERTY ARE NOT SUBJECT TO LEVY, GARNISHMENT OR SIMILAR PROCESS OTHER THAN BY AN ORDER ISSUED IN THE PROTECTIVE PROCEEDING AS PROVIDED IN SECTION 14-5428.

Sec. 29. Section 14-5421, Arizona Revised Statutes, is amended to read:

14-5421 . Recording of conservator's letters

Letters of conservatorship are evidence of transfer of all assets , OR IN THE CASE OF A LIMITED CONSERVATORSHIP, THE PART SPECIFIED IN THE LETTERS, of a protected person to the conservator. An order terminating a conservatorship is evidence of transfer of all assets of the estate SUBJECT TO THE CONSERVATORSHIP from the conservator to the protected person, or his THE PERSON'S successors. Subject to the requirements of general statutes governing the filing or recordation of documents of title to land or other property, letters of conservatorship and orders terminating conservatorships may SHALL be filed or recorded IN THE COUNTY WHERE THE PROPERTY OF THE PROTECTED PERSON IS LOCATED to give record notice of title as between the conservator and the protected person.

Sec. 30. Section 14-5423, Arizona Revised Statutes, is amended to read:

14-5423 . Persons dealing with conservators; protection

A. A person who in good faith either assists or deals with another person acting as 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 his 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 one who purports to act as 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 purported personal representative 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 here expressed IN THIS SECTION extends to instances in which some ANY procedural irregularity or jurisdictional defect THAT occurred in proceedings leading to the issuance of letters. The protection here expressed IN THIS SECTION is not by A substitution for that provided by comparable provisions of the laws relating to commercial transactions and laws simplifying transfers of securities by fiduciaries. If property is wrongfully transferred by a person acting as a conservator to a person who is not in good faith, any person who subsequently purchases the property in good faith is protected as if the original transferee dealt in good faith.

Sec. 31. Section 14-5424, Arizona Revised Statutes, is amended to read:

14-5424 . Powers of conservator in administration

A. SUBJECT TO THE LIMITATIONS PROVIDED IN SECTION 14-5425, a conservator has all the powers conferred herein and any additional powers conferred by law on trustees in this state. In addition, a conservator of the estate of an unmarried minor, as to whom no one has parental rights, has the duties and powers of a guardian of a minor described in section 14-5209 until the minor attains the age of majority or marries, but the parental rights so conferred on a conservator do not preclude appointment of a guardian as provided by article 2 of this chapter.

B. A conservator has power , without court authorization or confirmation, to MAY invest and reinvest funds of the estate as would a trustee.

C. A conservator, acting reasonably in efforts to accomplish the purpose for which he was appointed OF THE APPOINTMENT , may act without court authorization or confirmation , to:

1. Collect, hold and retain assets of the estate including land in another state, until, in his THE CONSERVATOR'S judgment, disposition of the assets should be made. Assets may be retained even though they include an asset in which he THE CONSERVATOR is personally interested.

2. Receive additions to the estate.

3. Continue or participate in the operation of any business or other enterprise.

4. Acquire an undivided interest in an estate asset in which the conservator, in any fiduciary capacity, holds an undivided interest.

5. Invest and reinvest estate assets in accordance with subsection B of this section.

6. Deposit estate funds in a bank or savings and loan association STATE OR FEDERALLY INSURED FINANCIAL INSTITUTION including a bank or savings and loan association ONE operated by the conservator.

7. Acquire or dispose of an estate asset including land in another state for cash or on credit, at public or private sale, and manage, develop, improve, exchange, partition, change the character of or abandon an estate asset.

8. Make ordinary or extraordinary repairs or alterations in buildings or other structures, demolish any improvements and raze existing or erect new party walls or buildings.

9. Subdivide, develop, or dedicate land to public use, make or obtain the vacation of plats and adjust boundaries, adjust differences in valuation on exchange, partition by giving or receiving considerations and dedicate easements to public use without consideration.

10. Enter for any purpose into a lease as lessor or lessee with or without an option to purchase or renew for a term within or extending beyond the term of the conservatorship.

11. Enter into a lease or arrangement for exploration and removal of minerals or other natural resources or enter into a pooling or unitization agreement.

12. Grant an option involving disposition of an estate asset, or take an option for the acquisition of any asset.

13. Vote a security, in person or by general or limited proxy.

14. Pay calls, assessments and any other sums chargeable or accruing against or on account of securities.

15. Sell or exercise stock subscription or conversion rights and consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution or liquidation of a corporation or other business enterprise.

16. Hold a security in the name of a nominee or in other form without disclosure of the conservatorship so that title to the security may pass by delivery, but the conservator is liable for any act of the nominee in connection with the stock so held.

17. Insure the assets of the estate against damage or loss, and the conservator against liability with respect to third persons.

18. Borrow money to be repaid from estate assets or otherwise, advance money for the protection of the estate or the protected person, and for all expenses, losses, and liability sustained in the administration of the estate or because of the holding or ownership of any estate assets, and the conservator has a lien on the estate as against the protected person for advances so made.

19. Pay or contest any claim, settle a claim by or against the estate or the protected person by compromise, arbitration, or otherwise and release, in whole or in part, any claim belonging to the estate to the extent that the claim is uncollectible except that personal injury or wrongful death claims shall be compromised pursuant to subsection D of this section .

20. Pay taxes, assessments, compensation of the conservator and other expenses incurred in the collection, care, administration and protection of the estate.

21. Allocate items of income or expense to either estate income or principal, as provided by law, including creation of reserves out of income for depreciation, obsolescence or amortization, or for depletion in mineral or timber properties.

22. Pay any sum distributable to a protected person or his dependent OF THE PROTECTED PERSON , without liability to the conservator, by paying the sum to the distributee or by paying the sum for the use of the distributee either to his THE guardian OF THE DISTRIBUTEE or, if none, to a relative or other person with HAVING custody of his THE person.

23. Employ persons, including attorneys, auditors, investment advisors or agents, even though they are associated with the conservator, to advise or assist him THE CONSERVATOR in the performance of his administrative duties, act upon their recommendation without independent investigation and, instead of acting personally, employ one or more agents to perform any act of administration, whether or not discretionary.

24. Prosecute or defend actions, claims or proceedings in any jurisdiction for the protection of estate assets and of the conservator in the performance of his FIDUCIARY duties.

25. Execute and deliver all instruments which will accomplish or facilitate the exercise of the powers vested in the conservator.

D. A conservator may act with court approval to compromise a personal injury or wrongful death claim for a protected person. The conservator may act with court approval to release an alleged tortfeasor if the release is in the best interest of the protected person. If the conservator obtains an order of approval for compromise from a court of competent jurisdiction, the compromise may be in exchange for a lump sum amount or an arrangement that defers the receipt of part or all of the consideration for the compromise until after the protected person reaches majority and may involve a structured settlement or the creation of a trust on the terms that the court approves for any protected person.

Sec. 32. Section 14-5425, Arizona Revised Statutes, is amended to read:

14-5425 . Distributive duties and powers of conservator

A. A conservator may expend or distribute income or principal of the estate without court authorization or confirmation for the support, education, care or benefit of the protected person and his THE PERSON'S dependents in accordance with the following principles:

1. The conservator is to SHALL consider recommendations relating to the appropriate standard of support, education and benefit for the protected person made by a parent or guardian, if any. He THE CONSERVATOR may not be surcharged for sums paid to persons or organizations actually furnishing support, education or care to the protected person pursuant to the recommendations of a parent or guardian of the protected person unless he THE CONSERVATOR knows that the parent or guardian is deriving personal financial benefit therefrom, including relief from any personal duty of support, or unless the recommendations are clearly not in the best interests of the protected person.

2. The conservator is to SHALL expend or distribute sums reasonably necessary for the support, education, care or benefit of the protected person AND THE PERSON'S DEPENDENTS with due regard to:

(a) The size of the estate, the probable duration of the conservatorship and the likelihood that the protected person, at some future time, may be fully able to BE WHOLLY SELF-SUFFICIENT AND ABLE TO manage his BUSINESS affairs and the estate which has been conserved for him .

(b) The accustomed standard of living of the protected person and members of his household THE PERSON'S DEPENDENTS .

(c) Other funds or sources used for the support of the protected person.

3. WITH RESPECT TO THE AFFAIRS AND ESTATE OF A MINOR, THE CONSERVATOR SHALL ALSO CONSIDER THE FOLLOWING FACTORS IN MAKING ESTATE DISTRIBUTIONS:

( a ) THE FINANCIAL RESPONSIBILITY AND FINANCIAL RESOURCES OF THE PARENTS OF THE CHILD.

( b ) EXTRAORDINARY CUSTODIAL RESPONSIBILITIES UNDERTAKEN BY THE PARENT OR PARENTS AS THE RESULT OF THE CHILD'S PHYSICAL OR MENTAL CONDITION AND THE EFFECT OF THESE EXTRAORDINARY RESPONSIBILITIES ON APPROPRIATE GAINFUL EMPLOYMENT OF THE PARENT.

( c ) THE PHYSICAL AND MENTAL CONDITION OF THE CHILD AND THE CHILD'S MEDICAL AND EDUCATIONAL NEEDS. ANY INCIDENTAL BENEFIT TO OTHER MEMBERS OF THE CHILD'S HOUSEHOLD DERIVED FROM A DISTRIBUTION IS NOT A DISQUALIFYING FACTOR.

( d ) IF THE CHILD IS PERMANENTLY AND TOTALLY DISABLED, AS THE STANDARD OF LIVING THE CHILD SHOULD REASONABLY EXPECT TO ENJOY GIVEN THE FINANCIAL RESOURCES AVAILABLE TO THE CHILD.

3. 4. The conservator may expend funds of the estate for the support of persons legally dependent on the protected person and others who are members of the protected person's household, who are unable to support themselves, and who are in need of support. If benefits are being paid by the veterans administration to the conservator, such income may be expended only for the support of the protected person , his AND THE PERSON'S spouse and his minor children, except upon petition to and prior order of the court after A hearing.

4. 5. Funds expended under this subsection may be paid by the conservator to any person, including the protected person, to reimburse for expenditures which the conservator might have made, or in advance for services to be rendered to the protected person when it is reasonable to expect that they will be performed and where advance payments are customary or reasonably necessary under the circumstances.

6. A CONSERVATOR, IN DISCHARGING THE RESPONSIBILITIES CONFERRED BY A COURT ORDER AND THIS SECTION, SHALL IMPLEMENT THE PRINCIPLES DESCRIBED IN SECTION 14-5408 TO THE EXTENT POSSIBLE.

B. When a minor who has not been adjudged disabled under section 14-5401, paragraph 2 attains his majority, his THE conservator, after meeting all prior claims and expenses of administration, shall pay over and distribute all funds and properties to the former protected person as soon as possible.

C. When the conservator is satisfied that a protected person's disability, other than minority, has ceased, the conservator, after meeting all prior claims and expenses of administration, shall pay over and distribute all funds and properties to the former protected person as soon as possible.

D. If a protected person dies, the conservator may deliver to the court for safekeeping any will of the deceased protected person which may have come into his THE CONSERVATOR'S possession or deliver the will to the personal representative named in the will. If the will is delivered to the personal representative named in the will, a copy of the will shall be filed with the court in the conservatorship proceeding. If the will is filed with the court the conservator shall inform the personal representative or a beneficiary named therein that he THE CONSERVATOR has done so, and retain the estate for delivery to a duly appointed personal representative of the decedent or other persons entitled thereto. If after forty days from the death of the protected person no other person has been appointed personal representative and no application or petition for appointment is before the court, the conservator may apply to exercise the powers and duties of a personal representative so that he THE CONSERVATOR may proceed to administer and distribute the decedent's estate without additional or further appointment. The conservator may include in such an application a request to probate the will of the deceased protected person. On receipt of an application, the registrar, after making the findings required pursuant to section 14-3303, shall issue a written statement of informal probate and shall endorse the letters of the conservator. The registrar may also enter the will of the deceased protected person to probate. The statement of the registrar under this section shall have the effect of an order of appointment of a personal representative as provided in section 14-3308 and chapter 3, articles 6 through 10 of this title, except that the estate in the name of the conservator, after administration, may be distributed to the decedent's successors without prior re-transfer to the conservator as personal representative.

E. If a protected person dies, and on reasonable inquiry the conservator is unable to locate any person specified in section 36-831, subsection A, paragraph 1, 2 or 3 willing to assume the duty of burying the body of the decedent or making other funeral and disposition arrangements, the conservator may make reasonable burial or other funeral arrangements, the cost of which is a charge against the estate.

F. The estate of a deceased protected person is liable for any unpaid expenses of the conservator's administration, and such expenses are a lien on property transferred by the conservator to the decedent's personal representative.

Sec. 33. Section 14-5427, Arizona Revised Statutes, is amended to read:

14-5427 . Preservation of estate plan

In investing the estate, and in selecting assets of the estate for distribution under section 14-5425, subsection A, in utilizing powers of revocation or withdrawal available for the support of the protected person, and exercisable by the conservator or the court, the conservator and the court should SHALL take into account any known estate plan of the protected person KNOWN TO THEM , including his THE will, any revocable trust of which he THE PERSON is settlor, and any contract, transfer or joint ownership arrangement ORIGINATED BY THE PROTECTED PERSON with provisions for payment or transfer of benefits or interests at his THE PERSON'S death to another or others which he may have originated OTHER PERSONS . The conservator may examine the will of the protected person.

Sec. 34. Section 14-5429, Arizona Revised Statutes, is amended to read:

14-5429 . Individual liability of conservator

A. Unless otherwise provided in the contract, a conservator is not individually PERSONALLY liable on a contract properly entered into in his THE CONSERVATOR'S fiduciary capacity in the course of administration of the estate unless he THE CONSERVATOR fails to reveal his THE representative capacity and identify the estate in the contract.

B. The conservator is individually liable for obligations arising from ownership or control of property of the estate or for torts committed in the course of administration of the estate only if he THE CONSERVATOR is personally at fault.

C. Claims based on contracts entered into by a conservator in his A fiduciary capacity, on obligations arising from ownership or control of the estate, or on torts committed in the course of administration of the estate may be asserted against the estate by proceeding against the conservator in his THE CONSERVATOR'S fiduciary capacity, whether or not the conservator is individually liable therefor.

D. Any question of liability between the estate and the conservator individually may be determined in a proceeding for accounting, surcharge or indemnification, or other appropriate proceeding or action.

Sec. 35. Section 14-5430, Arizona Revised Statutes, is amended to read:

14-5430 . Termination of proceeding

The protected person, his personal representative, the conservator or any other interested person may petition the court to terminate the conservatorship. A protected person seeking termination is entitled to the same rights and procedures as in an original proceeding for a protective order. The court, upon determining after notice and A hearing that the minority or disability of the protected person has ceased, may SHALL terminate the conservatorship. Upon termination, title to assets of the estate passes to the former FORMERLY protected person or to his THE PERSON'S successors . subject to provision in The order OF TERMINATION SHALL PROVIDE for expenses of administration or to conveyances from AND SHALL DIRECT the conservator to the former protected person or his successors, EXECUTE APPROPRIATE INSTRUMENTS to evidence the transfer.

APPROVED BY THE GOVERNOR APRIL 24, 1997.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 24, 1997.