Can we accept a Power of Attorney (POA) from another state? A customer would like to open an account for his mother for whom he has a POA that was signed several years ago in Ohio, where she resides.

Yes, we believe you may accept a POA from another state, but we recommend reviewing its terms to confirm that it authorizes the agent to open a bank account on behalf of the principal and confirming that the POA is still in effect.

The Illinois Power of Attorney Act provides that a POA executed in another state (or country) is valid and enforceable in Illinois if its creation complied with the law of: (1) the state or country where it was executed, (2) Illinois, (3) the law of the state or country where the principal lives, has a home or business, or is a national, or (4) the state or country where the agent lives or has a place of business. The Illinois Power of Attorney Act also provides a safe harbor from liability for any person who acts in good faith reliance on a POA or document purporting to be a POA.

In Illinois, the statutory short form power of attorney for property authorizes the agent to “open, close, continue and control all accounts and deposits in any type of financial institution” on behalf of the principal — unless the “financial intuition transactions” category of powers has been stricken out. Similarly, Ohio’s Uniform Power of Attorney Act provides a statutory form power of attorney that grants an agent the general authority over all subjects that are initialed on the form, including “Banks and Other Financial Institutions.” If this subject is initialed, the agent has the authority to “establish, modify, and terminate an account or other banking arrangement with a bank . . . selected by the agent.”

The POA also may list events that will result in its termination, such as the death of the principal or the principal’s revocation of the agent’s authority. Consequently, we recommend reviewing the POA to confirm that it grants your customer the authority to establish a bank account on behalf of his mother and confirming that no events of termination have occurred. The Illinois Power of Attorney Act provides a statutory form for an “Agent’s Certification and Acceptance of Authority,” which requires the agent to certify that the POA has not been revoked or terminated (among other items). A link to the statutory form is copied below.

For resources related to our guidance, please see:

Illinois Power of Attorney Act, 755 ILCS 45/2-10.6(a) (“A power of attorney executed in another state or country is valid and enforceable in this State if its creation complied when executed with:

(1) the law of the state or country in which the power of attorney was executed;

(2) the law of this State;

(3) the law of the state or country where the principal is domiciled, has a place of abode or business, or is a national; or

(4) the law of the state or country where the agent is domiciled or has a place of business.”)

Illinois Power of Attorney Act, 755 ILCS 45/2-8(a) (“Any person who acts in good faith reliance on a copy of a document purporting to establish an agency will be fully protected and released to the same extent as though the reliant had dealt directly with the named principal as a fully-competent person. The named agent shall furnish an affidavit or Agent’s Certification and Acceptance of Authority to the reliant on demand stating that the instrument relied on is a true copy of the agency and that, to the best of the named agent’s knowledge, the named principal is alive and the relevant powers of the named agent have not been altered or terminated; but good faith reliance on a document purporting to establish an agency will protect the reliant without the affidavit or Agent’s Certification and Acceptance of Authority.”)

Illinois Power of Attorney Act, 755 ILCS 45/3-4 (“Explanation of powers granted in the statutory short form power of attorney for property. . . . (b) Financial institution transactions. The agent is authorized to: open, close, continue and control all accounts and deposits in any type of financial institution . . .”)

Illinois Power of Attorney Act, 755 ILCS 45/3-3 (“Statutory short form power of attorney for property. . . . (NOTE: You must strike out any one or more of the following categories of powers you do not want your agent to have. Failure to strike the title of any category will cause the powers described in that category to be granted to the agent. To strike out a category you must draw a line through the title of that category.) . . . (b) Financial institution transactions. . . .”)

Ohio Uniform Power of Attorney Act, Ohio Rev. Code Ann. Section 1337.60 (“Statutory form power of attorney. . . . I grant my agent and any successor agent general authority to act for me with respect to the following subjects as defined in the Uniform Power of Attorney Act (sections 1337.21 to 1337.64 of the Revised Code): (INITIAL each subject you want to include in the agent's general authority. If you wish to grant general authority over all of the subjects you may initial ‘All Preceding Subjects’ instead of initialing each subject.) . . . (___) Banks and Other Financial Institutions . . .”)

Ohio Uniform Power of Attorney Act, Ohio Rev. Code Ann. Section 1337.49 (“Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to banks and other financial institutions authorizes the agent to do all of the following: . . . (B) Establish, modify, and terminate an account or other banking arrangement with a bank, trust company, savings and loan association, credit union, thrift company, brokerage firm, or other financial institution selected by the agent . . .”)

Ohio Uniform Power of Attorney Act, Ohio Rev. Code Ann. Section 1337.60 (“Statutory form power of attorney. . . You must stop acting on behalf of the principal if you learn of any event that terminates this power of attorney or your authority under this power of attorney. Events that terminate a power of attorney or your authority to act under a power of attorney include: (1) The death of the principal; (2) The principal’s revocation of the power of attorney or your authority; (3) The occurrence of a termination event stated in the power of attorney; (4) The purpose of the power of attorney is fully accomplished . . .”)

Illinois Power of Attorney Act, 755 ILCS 45/2-8(b) (Statutory form, “AGENT’S CERTIFICATION AND ACCEPTANCE OF AUTHORITY”)