The Bank Said No

Having a power of attorney and having one that works are two different things.

Florida is strict about this, stricter than most states. And the place people find that out usually isn’t my office. It’s the bank counter, with the document in hand, watching the bank officer slide it back across the desk.

Here’s what went wrong, in the versions I see often.

The form was downloaded. It had the right title and a signature line. It didn’t have two witnesses. Florida requires a power of attorney to be signed in front of two witnesses and a notary. Miss any one of the three, and it doesn’t hold up.

The document was written to “spring” into effect only if the person became incapacitated. Plenty of people like that idea: nothing happens until it has to. Florida stopped allowing that for documents signed on or after October 1, 2011. A Florida power of attorney takes effect the day it’s signed.

The document said the agent could handle “all financial matters.” It sounds complete. Itisn’t. Florida sets aside a short list of super powers, for example, making gifts, changing beneficiary designations, and creating or changing a trust, that only count if you initial or sign next to each one individually. Leave those lines blank, and your agent can’t touch them, no matter how broad the rest of the language is.

A plan built the right way handles all of this up front. A power of attorney drafted for Florida, signed the way Florida requires, with the powers you actually want spelled out and initialed. Then reviewed when life changes: a move, a divorce, an agent who is no longer the right person for the job.

Courts and banks don’t read documents for what you meant. They read them for what you did.

Your agent shouldn’t have to argue with a bank about whether they’re allowed to help you. The document should settle that before the conversation ever starts.

That’s not a technicality. That’s the whole reason you signed it.

If you have a power of attorney and aren’t sure it would hold up at the bank counter, that’sthe right place to start.

The Curran Law Firm handles estate planning and trust administration in Jupiter, Florida. We make sure your power of attorney is drafted, signed, and witnessed the way Florida law requires, so it works when it needs to.