|
 |
Home >> Special Situations >> Powers of Attorney
Powers of a Power of Attorney
If I am the power of attorney on a Will, will that count as power of attorney over banking account issues or will there need to be something in place at the bank?
|
Untitled
|
 Wills do not create powers of attorney. They name an executor and sometimes a trustee, if a trust will be created and funded as part of the settlement of an estate. Once the executor is approved by the probate court handling the estate, the executor must assemble and manage the assets of the decedent's estate. Part of that responsibility includes taking over bank accounts in the name of the decedent.
To do that, the executor must present proof of his or her authority, which is a sealed copy of the executor's court appointment, and obtain and provide an estate tax identification number from the IRS. The bank will either update its records to reflect the transfer of the account to the estate, or issue a check closing the old account so that a separate new account can be opened. This is the better method of the two. In either case, you will be asked to sign a signature card for the estate's account.
If state law allows, and if the Will explicitly provides for it, the probate court may allow the executor to issue a limited power of attorney to allow a person, individual or business, to assist the executor in carrying out his/her duties. If that is the scenario you are describing, the bank will have to have completed all of the steps above for transferring the accounts to the estate's ownership, plus get a full copy of your appointment as attorney in fact. Power of Attorney refers to the document and the authority, not to the individual that is given the authority. If, by some chance, you are referring to a power of attorney that was granted to you before death, that becomes ineffective upon its grantor's death.
Published on BankingQuestions.com 10/16/08
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
