Ensuring Your Power of Attorney is Accepted

Ensuring Your Durable Power of Attorney Is Accepted

A Durable Power of Attorney is a powerful estate planning tool that allows someone to act on your behalf
if you become incapacitated. But how can you ensure that your financial institutions will honor it?

Why Banks Sometimes Reject Power of Attorney Documents

Many banks carefully scrutinize Power of Attorney documents — and rightfully so. However, there have been cases
where banks refused to accept them, even when they were valid.

A recent Florida case awarded a man $64,000 after his father’s bank refused to release funds to him from a joint account,
despite his possession of a valid Durable Power of Attorney. A friend listed on the account was able to withdraw the funds,
and the jury later found that the bank should have honored the legal document.

How to Avoid Problems With Your Power of Attorney

Banks are cautious because they are concerned about liability if a Power of Attorney is fraudulent or invalid.
To prevent problems, it is important to communicate with your financial institutions.

After executing your Power of Attorney, contact your bank to ask what they require to ensure the document will be honored.
Some institutions may have their own forms. While these may not be legally required, completing them can make it easier for
your agent when the Power of Attorney needs to be used.

Expiration Concerns With Older Power of Attorney Documents

Many financial institutions and title companies will not accept a Power of Attorney if it is more than a year old.
Some companies are even stricter — one title company recently refused any Power of Attorney older than six months.

If you are relying on a Power of Attorney (instead of a Living Trust) for protection during a period of disability,
it is safest to execute a new Power of Attorney at least once a year.

Work With an Estate Planning Attorney

To ensure your estate planning documents are legal, valid, and tailored to your needs, work with an experienced
estate planning attorney. This helps ensure that your documents will be accepted when you need them most and
that they fully meet your goals.