The Death Readiness Podcast: Not your dad’s estate planning podcast
Why Banks Reject Powers of Attorney for Trust Accounts
Episode Notes
In this Tuesday Triage episode, Jill unpacks a common source of frustration for families: why a power of attorney works for some accounts but fails when it comes to trust assets. Using listener Lindsey’s real-life question, Jill explains the crucial distinction between acting as an agent under a power of attorney and serving as trustee. You’ll learn how banks view these documents, why powers of attorney don’t apply to trust accounts, and what you can do to avoid roadblocks when helping aging parents.
What Jill discussed:
- Lindsey’s story: Why her father’s power of attorney worked at the bank for checking and savings accounts, but not for trust accounts.
- The basics of a financial power of attorney: What authority it gives, and its limits.
- Why banks sometimes hesitate: Knowledge gaps, fear of liability, and extra review layers.
- Tips to smooth the process: Submitting powers of attorney before capacity is lost, and consolidating accounts at cooperative institutions.
- The bigger picture: A power of attorney covers personal assets; trust assets follow the trust agreement.
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