Having a power of attorney is a big part of any estate plan as it allows a person’s designated individual have the power to make important decisions on issues ranging from taxes and bills to asset management. However, some people are now finding that the all powerful document does not have as much sway as believed. That is because many financial institutions are now requiring that customers use forms that have been provided by the bank. Otherwise, they will refuse to allow control over the account to anyone but the owner. Even banks in states that have laws restricting a bank’s ability to refuse to honor a power of attorney have issued denials as institutes seek to avoid being tied up in any controversy that might come from the POA’s use. As a result, it is a good idea to check with the bank to see if any additional forms are needed in order to exercise control or face having to hire a lawyer to get anything done.
See Paula Span, Finding Out Your Power of Attorney Is Powerless, The New York Times, May 6, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
