A power of attorney the bank will accept
Banks turn down valid documents more often than families expect. A few choices at the start make acceptance much more likely.
A power of attorney that is perfectly valid can still be turned away at the bank window. The teller isn’t being difficult. They’re worried about being the one who honored a form they couldn’t check. Here is how to write and sign one that gets accepted the first time.
Why banks say no
The common reasons are small. The document is old, or a photocopy, or on a form the bank has never seen. It doesn’t say clearly that the agent may deal with banks. The signatures aren’t witnessed in the way the bank’s lawyers expect. Or the bank wants its own form, and says so after you arrive.
Write for a stranger
The reader is a bank employee with ten minutes and no knowledge of your family. Short paragraphs and plain headings help. So does a list of powers that names what you intend, not a single line that says “all powers.”
- Name the agent and a successor in full
- List banking, property, taxes and benefits as separate powers
- Say whether it takes effect now or only if you cannot act
- State what the agent may not do, such as change your will
Sign it properly
Witnesses and a notary aren’t the same thing, and your state may require both, one or neither. I check each signature as it is made, and I give you a short memo of who signed and when. That memo is more useful than people expect when a bank asks questions later.
Hand it over before you need it
Take the document to the bank where you keep most of your money, while you are well, and ask them to scan it. Many banks will tell you on the spot whether they will accept it. If they want their own form, sign that too.
A document in a drawer is a plan. A document on file at the bank is a tool.
If a bank still refuses
Ask for the reason in writing and the name of the person who decided. A letter from a lawyer often settles it. If it doesn’t, there are other routes, and I will go through them with you.