Why Did Financial Institutions Refuse to Honor Her Power of Attorney? - Jean Chatzky
What can you do when a money manager won't accept an essential estate planning document? Kristen McDermott of Fryeburg, Maine, needed an answer. McDermott, 58, a professional gardener, told me she had power of attorney (POA) for her mother, Leslie Kremer, 85, who has dementia. Kremers bank and former employer honored that POA, which Kremer granted 14 years ago giving McDermott legal authority to manage her mothers finances.
But two financial companies Vanguard and USAA wouldnt let McDermott act for her mother. She had called, supplied documents, called again and gotten nowhere.
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First, lets clarify: Powers of attorney arent all the same:
A general POA allows a designated person to handle all financial matters on your behalf.
A special or limited POA is for a specific purpose, such as having someone sign for you at a real estate closing.
A durable POA is in force at all times.
A nondurable POA ends if you become incapacitated or disabled.
A so-called springing POA goes into effect only if you become incapacitated.
McDermott had a durable POA, so she thought she was set.
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Vanguards version of a POA is called the Vanguard Agent Authorization form, which the company says was designed to be valid in the face of state-by-state variations in POA laws. Presumably, if Kremer had found it among the various forms on Vanguards site, filled it out and submitted it prior to the onset of her dementia, McDermott would now be able to access her mothers account.
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Regrettably, McDermotts problems were fixed only after I called public relations departments at USAA and Vanguard.
https://www.aarp.org/caregiving/financial-legal/info-2023/why-banks-refuse-poa.html