If your parent has planned well you will have the legal documents you need when the time comes to step in and help manage the finances. In the best of all worlds, all you would have to do would be to present your document at the bank or brokerage when the time comes. Your attorney will probably instruct you that this is all you have to do. Unfortunately, it isn't always that easy.

Banks and brokerages are regulated bodies. They have strict rules to follow about who is allowed to have access to a client's funds. Imagine the dilemma they face when someone unknown to them arrives in a branch and presents a Durable Power of Attorney document. Some of the concerns they will rightfully have are:

Is this the most recent Power of Attorney, or might it have been revoked in favor of another person and a newer document? How can we know?

Is the Durable Power of Attorney in effect? How can we know that the individual who signed this document is no longer able to manage his or her affairs, and the appointed Attorney in Fact is now legally responsible?

The last thing any financial institution wants to do is allow someone access to a client's funds, only to discover that the authority had been withdrawn. This would create a nightmare of shattering proportions for them, and for the client.

So, most banks and brokerages will he reluctant to accept your documents immediately if they don't know you or have a relationship with you.

What can you do to prevent Power of Attorney roadblocks?

If you possibly can, make an appointment and visit with the manager of your parent's bank and any other financial institutions before you need to use your Power of Attorney. If your parent can come with you, bring her along. Introduce yourself and give the manager a copy of your document. Ask what you can do to be sure it will be honored when necessary, even if that is several years in the future.

The manager will probably want to speak with your parent to satisfy himself that the Durable Power of Attorney was willingly signed and that your parent agrees with it's provisions. If your parent is unable to accompany you, or is too confused to participate in this interview, ask the attorney who prepared the documents if he or she would confirm your parent's wishes over the phone if the bank calls. Then have them make the call.

The financial institution may have their own Durable Power of Attorney forms that they want signed in their presence. They want to do this because they want to verify that your parent is signing willingly, and that their document is more recent than anything else that might be floating around. While this shouldn't be necessary because your attorney prepared documents that you have confidence in, sometimes it's easier to just have your parent sign the bank/brokerage forms, too.

Of course, if your parent is no longer able to sign documents, this won't be possible.

If signing new documents for a particular financial institution is still possible, you would be very wise have everything reviewed by your parent's attorney first, even if this means a second trip to the bank or broker to sign the forms and have them witnessed. The forms from the bank or brokerage will be written by their attorneys. The wording may be such that they don't agree with what your parent's attorney created. You will want to be sure that any new documents do not restrict you or invalidate the documents your attorney prepared in any way.

These additional steps can be irritating and appear time-wasting, especially if you are trying to provide long-distance help. However, sometimes not fighting the system is the most efficient and least time-consuming route to take in the long run. It can save you hours of turmoil and anxiety when it actually comes time to use your Durable Power of Attorney and you don't have either the time or the patience for dealing with a bureaucracy.