Agent May Withdraw Funds from Trust Bank Account

A durable power of attorney authorized the agent to act in the principal’s stead and to do anything the principal could do. The agent then closed the principal’s trust bank account and opened a new account with a different beneficiary. The principal’s guardian and personal representative sued the bank for allowing the withdrawal.

The trial court dismissed the complaint and the Florida intermediate appellate court affirmed. The power of attorney authorized the withdrawal and although state law prohibits an agent from altering any disposition effective at the principal’s death, the prohibition does not apply to withdrawing money from a trust account because the beneficiary cannot object to any changes made by the owner of the account.

Beane v. Suntrust Banks, Inc., No. 4D09-3033, 2010 WL 4483472 (Fla. Dist. Ct. App. Nov. 10, 2010).

Special thanks to William P. LaPiana (Rita and Joseph Solomon Professor of Wills, Trusts,and Estates, New York Law School) for bringing this to my attention.