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February 19, 2019

Beneficial Interest

Filed under: Technical & Legal — Tags: — admin @ 10:39 am

Beneficial interest, financial interest and conflict of interest are terms that a Notary Public should know.

Beneficial Interest
If a person is named in a document as someone who will receive some sorts of rights, privileges, or financial endowments, the could be said to have beneficial interest. Notaries are prohibited from Notarizing documents that they are named in as this constitutes beneficial interest which represents a conflict of interest. If you are a beneficiary in a document for perhaps a will, trust holdings, etc., then you would have beneficial interest.

Financial Interest
Someone who is named in a document to receive financial sums can be said to have financial interest.

Conflict of Interest
If you gain by having a document signed and you are the Notary, that means you have an interest in having the document signed which constitutes a conflict of interest. Notaries need to be impartial in their duties and should not have any conflict of interest.

Notarizing for Family Members
It is discouraged for a Notary to notarize for family members. It might not directly constitute a conflict of interest, but it looks questionable and it is better to have an outsider notarize signatures for family members as they are completely uninvolved (probably).

Interesting links

123notary Glossary — beneficial interest
http://www.123notary.com/glossary/?beneficial-interest

Investopedia — beneficial interest definition
https://www.investopedia.com/terms/b/beneficial-interest.asp

The 30 point course — beneficial interest
http://blog.123notary.com/?p=14532

Just say No #3
http://blog.123notary.com/?p=376

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2 Comments »

  1. What about “friends with beneficial interest?”

    Comment by admin — March 28, 2019 @ 2:25 am

  2. Just aNOTHER question to ask a signer when you confirm, regarding providing witnesses. I OFTEN offer my office in town when it requires witness signatures. There are over 100 possible witnesses there that are not related by blood or financial interest. Don’t even TRY to find anybody who works at a hospital to witness, bc they will refuse.

    Comment by betty — April 1, 2019 @ 5:43 pm

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