Are you searching for necessary information about a bank power of attorney and how it works? We have got you covered. This article covers its definition, explanations, and questions to give you the right understanding of the concept. So Let’s learn about ‘Bank Power Of Attorney’.
Power of bank attorney is a lawful form that permits an agent to make decisions in your place or on your behalf. Under specific instances, the Bank of America licenses agents to be included in the Principal’s accounts. This depends on the instance. The structure and extent of transactions an agent may perform may be limited. Implementing a power of attorney document can allow an agent to act for you in financial matters.
There are different types of power of attorney documents. They are:
- General power of attorney: this is the type of power of attorney that permits an agent to stand in for you in financial matters given that you are sane. In an instance where you are no longer mentally fit of making decisions, it will be terminated. It is a wide license that gives an agent power to manage the affairs of a person.
- A durable power of attorney: here, the power of attorney does not end after a person lacks the mental capacity to handle affairs. It is only valid within the period a person wishes to have someone act on his behalf.
- Limited power of attorney: here, there is only so much the agent can handle. A person that is to curtail how much the agent can perform should choose this type of power of attorney. It is also called a special power of attorney. Before a person appends a signature to notarize a special power of attorney, the person needs to be as certain as possible about how much the agent should manage.
- Medical or healthcare power of attorney: this type of power of attorney usually falls under the durable power of attorney because it is considered that the principal may be too ill to make decisions.
Bank’s Power of Attorney:
A bank power of attorney permits a trusted agent to handle your bank accounts on your behalf. If you are looking to establish a power of attorney for banking transactions, your power of attorney has to particularly express that. In drafting a banking power of attorney certain clauses and elements should be included. You should cover the names of both you and your agent, the date at which the power of attorney agreement will be effective, the relevant information and details about the agent, the specific type and description of the power of attorney, and instructions for the agent in case of absence.
Note: You can get a lawyer to draw up your power of attorney document. This might be expensive, however.
Working of bank’s Power of Attorney:
You can either download or purchase a power of attorney template. In doing this, you should make sure the template belongs to your state of residence. It is vital to ensure the document you purchased is valid and is not a fake. After this, it is best to find a lawyer but in the instance where the fees may be too high, you can visit a legal services office. If both fail, you can draft the document yourself but this is inadvisable. When the power of attorney is implemented, the original copy is handed to the agent who will provide it to a third party as proof of authority to handle finances for you. The authority ends when the principal dies. It may also end when the principal is incapable. This hinges on the subject of the agreement. It may also end if it is revoked or if a court deems it invalid or the agent is unable to serve and there is no replacement. Legally, a person can be an agent if the person is at least eighteen and is of sound mind. An agent should be someone you genuinely trust and is entirely devoted to acting in your best interest.
Powers of an agent
Your agent can only perform transactions that you allow. The powers of your agent are entirely based on your discretion. Some people authorize the agent to handle all financial matters while others limit their actions to just a single financial transaction. Powers that can be transferable to an agent include:
- Real and personal property transactions
- Securities transactions
- Banking transactions
- Insurance transactions
- Government and retirement benefits
- Tax
- Check deposits
- Bills of exchange and promissory notes
- ATM and Credit card application and use
Getting your Power of Attorney accepted
Having the best lawyer draw up your power of attorney document does not ensure that a bank will accept it. The banks may not trust you and you must prepare for that. Banks too are acting as agents to protect customers’ finances and if they are not convinced they will not give power. Banks may reject a power of attorney because it may be old, vague, or out of line with their policies. To get your power of attorney recognized by the bank, do it early and have the bank go through your document to point out any problems with it.
Conclusion
A power of attorney is another means of day-to-day convenience. It is an authority conferred on an agent by a principal permitting the agent to act on the principal’s behalf. If you are too busy handling responsibilities, you should consider having an agent take financial issues off your hands.
FAQs
- Is there a fee to include a power of attorney agent in my account?
No. there is no fee charged by the Bank of America to add a power of attorney agent to your account.
- Is there a fee to acquire a power of attorney document?
Power of attorney documents can be gotten from an attorney of your choice at your expenditure.
