Use The Bank Forms For POA

 In Learning Center

Bank Forms

If anyone every asks about bank forms for POA, my advice is simple-sign them. If there’s one act that gives the bank employees pause, it’s when someone walks in with a Power of Attorney (POA). It’s understandable. When you sign a POA, you allow someone to be you for all of your financial affairs.

The bank gets worried that the POA will fall into the hands of an unscrupulous person and drain the principal’s account. Then the principal will sue the bank. Trust me, the people at the bank have seen it. Many times.

So what do you do to minimize the risk that an agent will be denied the ability to use the POA at the bank? Ask the people at the bank if they have their own POA form. Some banks have their own form. Others have a POA signature card. Some banks want you to use the attorney-prepared document. It depends on the bank. The bank likes their own form because it has a limitation of their own liability if your agent uses your POA to steal your money. This is why it’s very important for you to  carefully consider who should have power of attorney in the first place.

Remember too that a power of attorney is only valid while someone is alive. A person cannot you a power of attorney to make decisions for a deceased person. The person who has power of attorney may also be the named executor in the deceased person’s will. However, that person must be appointed by the probate court before they have authority to act.

So remember, if the bank has a POA form, you should fill it out and get it into the bank’s records. This will make life much easier for your agent.

If you’re ready to quit worrying and get started, contact me today!




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