A durable power of attorney is supposed to give you the power to manage a loved one’s affairs if they’re mentally or physically incapacitated. However, some people find that, once their parent or other family member develops dementia or suffers an accident, banks and other financial institutions refuse to honor the document. If you find that your power of attorney is essentially powerless, you may need an attorney to protect your loved one’s interests.

Why a Bank May Refuse to Honor a Power of Attorney

Many banks, especially leading national chains, have their own proprietary forms which give people the right to manage an account holder’s affairs in the event of an incapacity. In many cases, these banks will simply refuse to honor a durable power of attorney, even if it was prepared by an attorney and is legally valid according to the laws of your state. Many other financial institutions may reject a power of attorney if it’s stale, or prepared several years ago.

What to Do if the Bank Rejects Your Power of Attorney

Unfortunately, most people only find that the bank refuses to honor a power of attorney after their family member has become incapacitated. In this condition, it may be impossible to have them sign the bank’s proprietary form, but a skilled attorney can help. Your lawyer may be able to convince the bank to accept your document simply by calling senior management at the bank, and usually won’t even need to threaten a lawsuit. To prevent this situation from arising in the first place, ask an attorney to find out whether your bank requires a special power of attorney, and refresh your document every few years.

For over 30 years, Cincinnati, OH, residents have relied on Lance S. Cox, Attorney at Law for effective, comprehensive service in even the most complex legal situations. They have the expertise to ensure your power of attorney is honored and your loved one’s wishes are respected. Visit their website for more on their estate planning services, or call (513) 528-6000 to schedule a consultation.