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The Power of Attorney the Bank Refused to Honor

A son came to see us, holding a document he thought solved everything.

His mother had given him power of attorney years before.

She’d recently been moved into memory care, and he needed to manage her finances – pay the facility, handle her accounts, keep her life running. He walked into her bank, document in hand, expecting it to be simple. It wasn’t. The bank looked at the power of attorney and declined to accept it. It was old.

It didn’t include some of the specific language they required. And the staff were worried – if they let him act and something was wrong with the document, the bank could be on the hook. He explained the situation. He showed them the medical records.

It didn’t matter.

Their policy was their policy, and the answer was no. His mother could no longer sign a new one – she was past the point of being able to understand it.

So the only door left was the one no one wanted: petitioning the court for guardianship, at exactly the moment the family was already stretched thin.

When he told me the story, he kept saying the same thing: “But I had the power of attorney. I did what I was supposed to do.” He had. The problem wasn’t that he didn’t plan. The problem was that the document hadn’t been kept current, and it wasn’t written to survive a bank’s scrutiny.

A power of attorney isn’t a piece of paper you sign once and forget. It’s a tool that has to be maintained – reviewed, updated, and written to be accepted – so that when your family hands it across the counter, the answer is yes.

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Craig R. Hersch

  • Senior Partner,
    • Sheppard Law Firm
  • Florida Bar Board Certified Estate Planning Attorney / CPA
  • Editorial Advisory Board Member,
    • Trusts & Estates Magazine
  • Founder & Board Member,
    • State Chartered Trust Company