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Home >> Special Situations >> Powers of Attorney
POA, but Bank Continually Obstructs Activity
My parents are in frail health and have given me power of attorney over their financial affairs. I've also gotten the bank's own power of attorney on my parents' joint checking account. Why did I have to do that? Why wasn't my power of attorney good enough for them? I now have an unexpected federal tax refund tax, made out to both my parents, that I'd like to deposit in their account. The bank won't let me deposit the check without my parents' signatures. Why? How can I take care of their financial affairs without continually being obstructed by the bank?
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 The bank ought to accept the powers of attorney that your parents granted you, assuming that those documents were sufficiently worded to give you the authority needed to manage their accounts. Some banks, however, also ask that their "in-house" power of attorney document be used to ensure that all the bases are covered. We'll assume that those forms were acceptable to your parents and that they signed them before a notary, etc., so that they have now each given you two power of attorney documents.
There is no reason for the bank to refuse to accept your endorsements as attorney-in-fact for your parents on their tax refund. The federal regulations covering endorsements of U.S. Treasury checks allow for such endorsements on tax refund checks (special wording is required in powers of attorney used for endorsement of Social Security checks, but that is not the question you raised).
Ask the bank to have its counsel review the federal regulation at 31 CFR Part 240, section 240.17 in particular, which allows for endorsements by an attorney-in-fact. We see no reason for the bank to refuse to accept the check for deposit. Their continued failing to do so could, of course, sour what appears to be a long-standing account relationship.
Published on BankingQuestions.com 8/25/10
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