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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. You will have a professionally prepared
Durable Power of Attorney that spells out what you can
do, and the circumstances in which you can act on your
parent's behalf.
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have been revoked in favor of another person and a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discover that the authority had been withdrawn.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.
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