Beneficial Interest is a problem that could arise when notarizing documents for relatives. While some states do not prohibit notarizing documents for relatives, other states strictly regulate what relatives are allowed to be notarized.
Notaries should always proceed with caution as they are expected to serve impartially. However, when a notary is related to a signer, the notary could be considered to a have a potential benefit from the document that is notarized. In the case of a legal dispute this could potentially lead to claims of bias or impropriety.
For more information about this topic, please check out this article from the National Notary Association.
