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Home >> Special Situations >> Powers of Attorney
POA Takes Funds from MMDA
Can a POA drain funds out of a joint money market savings account?
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 If Harry and James are joint owners of a money market savings account, and Harry grants Sally a power of attorney that permits her to act on Harry's behalf with regard to his bank accounts, Sally, as Harry's attorney-in-fact, can deposit to, transfer and withdraw from, or even close the account, provided that she is in each case acting on Harry's behalf. Some bank contracts limit the ability of an attorney-in-fact or other authorized signer to close the account, but he or she can still reduce the balance to zero, which has essentially the same effect in the long run. That's true even if all the funds in the account before Sally entered the picture were James's. Joint ownership is joint ownership, and it creates a pool of funds from which any joint owner or individuals with signing authority, can withdraw.
Published on BankingQuestions.com 4/23/10
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