Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
Banks can sometimes be reluctant to accept a power of attorney (POA) document, even if it was properly executed, due to their own internal policies and risk management practices. However, it’s important to understand that banks are generally required by law to honor a legally valid power of attorney.
The main reason banks may hesitate to accept a POA is their desire to avoid potential liability or legal issues. They want to ensure the document is current, valid, and truly represents the account holder’s wishes. Some common concerns banks have include:
1. Fraud prevention: Banks want to protect their customers from financial exploitation.
2. Liability concerns: They fear potential lawsuits if they mistakenly allow access to accounts.
3. Verification challenges: It can be difficult to confirm the authenticity of a POA document.
4. Outdated information: The POA may have been revoked or amended without the bank’s knowledge.
To address these concerns, many banks have implemented their own requirements that sometimes go beyond what is strictly required by law. For example, they may insist on using their own POA forms or require periodic reaffirmation of the document’s validity.
However, it’s crucial to note that under the Uniform Power of Attorney Act (adopted by many states) and similar state laws, banks must accept a properly executed POA unless they have a valid reason to reject it. If a bank refuses to honor a legally valid POA, you may need to escalate the issue to the bank’s legal department or seek legal counsel to assert your rights.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.