Even with proper documents, an agent may have trouble handling principal’s affairs

Having all of the proper disability planning for property management documents in proper form (e.g., a durable power of attorney) may not be enough for an agent to handle the principal’s business in an efficient manner.

Here are some excerpts from Molly Selvin, Cashing out an elderly parent’s IRA — in just 9 visits to the bank, LA Times, May 4, 2008, which describes some of the problems:

Over three months last winter, [Agent] made nine trips to the bank. Sometimes I accompanied him. He spoke with several “customer solutions representatives.” He produced his dad’s durable power of attorney and living trust for inspection multiple times. Those documents were repeatedly faxed to the bank’s central legal department for further examination. Hard copies were then sent by corporate courier to the bank’s IRA department — and disappeared.

Bank of America’s employees were unfailingly polite and eager to help. But depending on the day and the person, [Agent] was told that [Principal’s] legal papers were in order. Or that they weren’t. He was told that, notwithstanding [Principal’s] wishes, bank policy bars adult children from managing their parent’s individual retirement accounts. Or that it doesn’t. * * *

[Agent] eventually prevailed, in large measure because he was persistent. * * *’

The experience was a cautionary tale for other baby boomers who may soon be in charge of their elderly parents’ affairs: Holding a durable power of attorney may be only the first step. You may have to fight to enforce it.