010 Will the Bank Trust You?

Power of Attorney Problems Download Your Free Book: https://tinyurl.com/monahan-estate-book 🎧 Listen on Apple Podcasts | Spotify .responsive-img { float: right; margin: 0 0 1em 1em; max-width: 300px; width: 100%; height: auto; border: 1px solid #ccc; border-radius: 4px; } @media (max-width: 600px) { .responsive-img { float: none; display: block; margin: 0 auto 1em auto; } } In this episode of Estate Planning Confidence, we pull back the curtain on a problem most people don’t see coming — and it often strikes exactly when you need help the most: banks and brokerages refusing to honor your power of attorney. Here’s the uncomfortable truth: Even if you have a valid, official state form power of attorney, financial institutions may delay, challenge, or outright reject your authority when it matters most — like when a parent has dementia and bills need to be paid. Many families think they’re prepared. They’ve signed all the right paperwork, named an agent they trust, and assumed the bank will simply cooperate. But that’s not always how it works. As Bob explains: “The surprise is that a perfectly valid power of attorney may not give you practical access to a loved one’s accounts. The legal department at a bank or brokerage might hesitate, delay, or require their own forms — or they may push you to court.” Here’s why this happens: 🔹 A power of attorney creates a relationship between two people — the principal (the person signing the power) and the agent (the person authorized to act).🔹 But once the principal has lost capacity — say, due to dementia — no one is left to supervise what the agent is doing.🔹 From the bank’s point of view, this lack of oversight raises risk: “What if this agent misuses the funds? How will we know? Who holds them accountable?” The result? Even with a valid document, families face roadblocks, delays, frustration, and legal fees — right when time and access to funds are most critical. .responsive-img-left { float: left; margin: 0 1em 1em 0; max-width: 300px; width: 100%; height: auto; border: 1px solid #ccc; border-radius: 4px; } @media (max-width: 600px) { .responsive-img-left { float: none; display: block; margin: 0 auto 1em auto; } } That’s why, in this episode, Bob shares key steps you can take to avoid this problem: ✅ Check with your financial institutions now. Ask your bank or brokerage if they have their own preferred power of attorney forms. Completing their internal paperwork may help avoid trouble later. ✅ Consider a trust for key assets. Unlike a power of attorney, a trust adds additional checks and balances. A trustee is accountable to the beneficiaries, which gives banks greater confidence and reduces their risk — making them far more willing to cooperate. At its core, this issue isn’t just about documents — it’s about confidence, security, and control.By planning ahead, you can make sure the tools you have in place will actually work when your family needs them most. If you want to avoid delays and ensure your plan works smoothly: ✅ Review your power of attorney documents✅ Check with your financial institutions✅ Consider trust planning for key accounts The Estate Planning Confidence Book And if you’re wondering how to begin, we’ve created a free resource to help: the Estate Planning Confidence book — a clear, concise guide that answers the most common questions and gives you a roadmap for action. About Robert Monahan Robert Monahan is an estate planning attorney licensed in Illinois and New York. He is a graduate of the University of Chicago and the University of Virginia School of Law. Robert helps families plan with clarity and confidence from his office in Gurnee, Illinois. 📍 Office: 4229 Grove Ave, Gurnee, IL📞 Phone: [phone]📧 Email: [e-mail]