Will Your Power of Attorney Help or Hinder?

More and more financial institutions are not willing to accept the power of attorney (POA) you draft as part of an overall estate plan. They instead insist that the principal use their own internal POA form. 

Financial institutions are concerned about fraud and varying instructions from one POA to the next and therefore require all customers to use their standard form.  While there is no legal basis for them to refuse the POA you have drafted, the reality is that clients are continually frustrated when their bank or investment company will not follow the direction of a properly designated POA.  Often times that frustration is directed at the drafting attorney as the client doesn't understand why the institution is refusing to honor the document.

Although a letter to the institution from an attorney can sometimes be effective, the easiest solution is to suggest to your clients that they take the POA you draft to all of their institutions, ask that they put it on file and ask if there are any additional internal forms that the company also requires be completed by the principal. 

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