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0:00 FInancial Institutions Rejecting Powers of Attorney
0:17 The Problem
0:38 Why Financial Institutions Reject Powers of Attorney
3:03 Common Problem
3:17 Submit Power of Attorney in Advance
3:52 Corrective Action
4:24 Authorized Signer or Full Access
5:39 State Legislation Regarding Rejecting Powers of Attorney
6:16 Some States Have Statutory Power of Attorney
7:14 Transferring Accounts to Your Revocable Living Trust
8:23 Check With Your Financial Institutions
8:53 No Expense Estate Design Meeting…(read more)
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How To Deal With A Bank Rejecting Your Power Of Attorney
A power of attorney is an invaluable legal document that allows someone, known as the “principal,” to give authority to another person, known as the “agent” or “attorney-in-fact,” to act on their behalf. This legal arrangement is often used by individuals who need assistance handling financial matters temporarily or in the event of incapacity.
However, sometimes banks or other financial institutions may reject a power of attorney document, causing unnecessary frustration and inconvenience for the principal and their agent. If you find yourself in such a situation, here are some steps to help you deal with a bank rejecting your power of attorney:
1. Understand the bank’s perspective: Banks have a responsibility to protect their customers’ assets and prevent potential fraud or financial abuse. As a result, they may have strict policies regarding accepting power of attorney documents to ensure the authenticity and validity of the arrangement. It’s important to keep this in mind and approach the issue calmly and professionally.
2. Consult an attorney: If a bank rejects your power of attorney, it’s advisable to consult an attorney specializing in estate planning or elder law. They can review the document and provide guidance on how to address the bank’s concerns or offer alternative solutions. An attorney can also help you draft a more comprehensive power of attorney document that addresses specific concerns raised by the bank, thus increasing your chances of acceptance.
3. Contact the bank: Reach out to the bank that rejected the power of attorney and try to understand the specific reasons for the rejection. Ask to speak with a representative who handles power of attorney requests or compliance to get accurate information and outline the steps you need to take to rectify the situation. Be polite and patient while explaining your circumstances.
4. Review local laws and bank policies: Familiarize yourself with the laws and regulations governing powers of attorney in your jurisdiction. Additionally, carefully review the bank’s policies and procedures for accepting power of attorney, as these may vary from institution to institution. Being knowledgeable about the relevant laws and bank policies can support your case and help you advocate for your rights.
5. Certify the power of attorney: If the bank has concerns about the legitimacy of the power of attorney document, consider having it notarized or certified by a qualified professional. This may help prove the authenticity and validity of the document, potentially increasing the bank’s confidence in accepting it.
6. Involve the principal: If the principal is still mentally competent, having them accompany you to the bank can often help facilitate acceptance. The principal can affirm their decision to grant power of attorney and clarify any concerns directly with the bank representative. Their presence can provide reassurance and demonstrate that the arrangement accurately represents their wishes.
7. Explore alternative solutions: If the bank remains unwilling to accept the power of attorney, ask if they have any alternative procedures or documentation requirements. In some cases, banks may have their own specific power of attorney forms that they prefer to use. Consider accommodating their requests if it doesn’t compromise the legal integrity of the arrangement.
Remember, every situation is unique, and your approach may vary depending on specific circumstances. Adhering to the advice of legal professionals and maintaining open communication with the bank will increase your chances of resolving the issue successfully. While dealing with a bank rejecting your power of attorney can be frustrating, patience and persistence will ultimately help you overcome this obstacle and ensure the smooth management of the principal’s finances.
Statutory power of attorney: a very large northeastern state passed a law for a statutory POA a number of years ago. After a few years of litigation, it was found that the law creating statutory POA was faulty. Eventually the statute was corrected.
Fun fact: Social Security does not recognize ANY POA's.
Many banks require an agent to recertify a POA every year as general policy. You have to go to a notary and make an affidavit saying the POA is still valid.
There are many of us without family to be POA. What do you do?
I went through a Situation
Similar to this with my aunt estate, I had court papers making me Administrator to her estate and the bank refused to Accept the papers so I told them that I was going too call the Sheriff and they said OKAY.
@MuckinFutch
0 seconds ago
In the Power of Attorney for Property, do you give the Agent the power to sign on behalf of the Trustee of the Revocable Trust (in addition to signing for the Grantor as an individual)?
I did TOD to my son, the executor, at each bank on each account.
I have a spreadsheet with many pages detailing pretty much everything in my life, even simple things like magazine subscriptions. That plus access to my cloud password manager, my designee could easily handle all my accounts even though they are all autopay. My POA and executor instructions authorize accessing my digital accounts. There's no need to even talk to my banks or brokerages.
Which banks hav you found which allow a Trust to own an account?
This is just another reason why many people lose confidence in our legal system.
That is a good idea to go to the bank after the POA is signed and see if they would accept it in the future. If they don't accept it, close all the accounts and go to a bank that will.
At the recommendation of personnel at our local hospital, I paid to get a Release of Medical Information, Health Care Power of Attorney (including Mental Health powers) and Living Will, as well as a Durable General Power of Attorney (Financial) for an incapacitated member of my immediate family. To date, I have had numerous people, from Social Security Administration, Medicare, health care providers, hospitals, and credit card companies, all refuse to accept these "legal" documents. Most disturbing was how the people at the very hospital which advised me to get these documents in the first place, looked at me like a dog watching television when I later presented them with the very documents they initially recommended. My real life experience frustratingly demonstrates that these documents aren't worth the paper they are printed on… Zk
In Florida can someone really attach money in your bank account in a lawsuit / creditor situation if someone is a signer, not a joint owner?
In addition to the POA / Trust, one suggestion is to give your loved ones the user ID and password to your bank / brokerage account. This will allow them to act on your behalf without having to go through all of the hoops that Paul outlined.
I'm in a work meeting BUT I LIVED THIS!!!! So, I'll be back to watch. But trust me, this title caught my attention. Farging Citibank 2004. Oh you have to FAX to corporate. Then it gets rejected. Then you FAX it. Then they reject it. Repeat. We solved it via the ATM card and transacted that way. FYI: most banks/brokerages have internal powers of attorneys so you can collect the 3-4 you need that are bank/brokerage specific.
This is exactly what happened dealing with the death of my sister at Chase Bank. They refuse to recognize the POA and required that their form, along with a fee, be completed before they would release any of her funds. It’s hard to understand how these firms can simply dismiss legal documents . I hope estate planning lawyers make their clients aware before having the same surprise/ shock as it just adds additional stress to the stress of losing a loved one.
This happened to me, POA paperwork failed to impress the bank. Discovered the bank wanted me to prove that I was the trustee of the trust. I had to prove that both my parents could no longer serve as trustees. My mother had dementia and the doctor had to provide documents for this. My father had to sign a form at the nursing home in the presence of notary. After the bank's legal department approved this I had access to it all. I was a fiduciary then.
My dad put my sister on his bank account which solved the problem. If you trust someone to be the trustee or power of attorney then why not trust as an aurthorized signer. Does anyone have any experience with the POA for IRA accounts with the spouse being the POA? Do I need to specifically authorize my wife as POA at each institution?
Yes! My experience exactly. Make sure those power of attorneys are no more than 5-years old. Better still, complete the bank's own power of attorney document.
Now I'm battling with USAA Federal Savings Bank. I am the successor trustee and they are failing to release the funds of the account in the living trust to me as per the trust document. They got a copy of the trust when I requested the funds after they froze the account, and they got a copy of the same trust when the account was opened. And yes I provided the death certificate.
It's never as easy as it's purported to be.
I made sure my name was on my Mom’s account while she was able to sign.
The moral of this story OUGHT TO BE: If a lawyer can't prepare a power of attorney that will be accepted by every financial institution – and will enforce it without additional fee, then it's a waste of time and money to pay one to do it. If you are competent enough to open an account then go to each bank, etc, and fill out their damned forms.
Sue the CEO and report the bank to the state banking authority
Didn't think that a signer would expose an account to creditors given there is no ownership interest.
Had a situation recently where after my Dad's death, the bank would not release any of his funds even though the accounts were in his Trust. Had to jump through hoops to get access to these funds. Next step was a court summons (lawsuit) to the bank CEO. They finally relented. What sleezeballs!! We took all the money out as fast as we could.
Shame, nowadays bank act like it's their money.
Both banks refused to even look at my Mom's trust documents and forced us to get a probate judge to sign off on the trust. So what's the point of having these documents if low level bank scum can just refuse to even look at your paperwork.
What bank tellers have told me is:”time required representing the client involved.” They don’t have the staff. ( Worse only bank here Bank of AMERICA CLOSED). Now we have to drive to near city .