A Power of Attorney is a signed written statement in which a person (grantor) gives power and authorizes another person (agent) to act on their behalf. When you are unable to manage your bank accounts, a power of attorney can help.
There are different types of power of attorney documents. Some financial institutions will have internal POA forms you can fill out and add an agent. The agent you named will only have authority over the accounts with that financial institution.
What is a Power of Attorney
You can draft a general power of attorney and name a person authorized to handle your business. A general power of attorney will have powers to handle everything.
In contrast, a special power of attorney only gives specific and limited authority to an agent. For instance, an agent in a special power of attorney may only have the authority to handle bank accounts but not real estate transactions.
There are also timeframe aspects with the power of attorneys. A general POA may cease to be valid once the grantor becomes ill, incapacitated, or dies. A durable POA may allow a person to continue to act as an agent when the grantor is ill or incapacitated.
How to Add a Power of Attorney with Financial Institution
If you have a POA document, then reach out to your financial institution to have the power of attorney filed. You will need to have the POA document signed in the presence of a notary or have it notarized. Once a power of attorney document is filed with your financial institution it’s noted in their systems.
In other instances, a bank or credit union representative may be authorized to help you complete their internal POA form, have it notarized, and filed.
What Happens with a Power of Attorney
Whether you add a POA on your banking accounts or designated as POA over accounts, you’ll want to know the following:
You are giving POA to someone else to handle your accounts.
The power of attorney authorizes your agent to access your bank account or take other actions with your bank. When you give someone authority over your accounts they have the authority to act as if the accounts were in their name. Be aware of whom you give power of attorney over your accounts.
It may be necessary to file a power of attorney with each financial institution you have accounts with. You can designate a different person to act as power of attorney for different accounts.
You are given POA over another person’s accounts
Being designated in a power of attorney as the person to handle banking issues is a responsibility that should not be taken lightly. A power of attorney gives you the legal right and ability to handle a wide variety of affairs for another person if he is unable or unavailable to handle their affairs himself.