Topic: Power of Attorney
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We have a customer with a power of attorney over his father’s individual checking account. The account is not a payable on death (POD), but the son would like to convert it to one. We have a copy of the father’s will, which indicates that his four children will receive his estate in equal shares. Can we allow the son with power of attorney to add POD beneficiaries to his father’s account? If so, do we need to require that he add all four children, in light of the will’s directives?
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The answer depends on the specific language in the power of attorney document. Generally, an agent acting under a power of attorney does not have the authority to add or change account beneficiaries without an express grant of authority to do so (which would be identified in Section 3 of the statutory short form power…
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The mother of one of our safety deposit box customers contacted us. She said that her son had to travel out of state for health reasons and cannot return. She wants to empty the safety deposit boxes. Our procedures require that the customer appear in person before we could add his mother as a signer on the box. The mother would like to present a notarized letter from the customer permitting her to empty out the boxes. Should we accept a notarized letter?
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No, we do not recommend relying on a notarized letter. If your customer’s mother wishes to exercise control over her son’s safety deposit box, the bank could rely on a power of attorney or court order providing her with that authority. For example, the Illinois Statutory Short Form Power of Attorney for Property provides the…
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A son came in with a power of attorney document for his elderly father. The document was signed by a notary, but the notary did not affix his stamp. Our attorney indicated it is somewhat common for notarized documents to have no stamp. Is this true?
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We believe that a properly executed power of attorney document should include the notary’s stamped seal. The Illinois Power of Attorney Act requires a power of attorney for property to be notarized. The Illinois Notary Public Act requires notaries to affix their stamp's seal whenever they perform a notarial act. We are not aware of…
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We have a potential business customer that performs property repairs. The customer would like to deposit checks issued by insurance companies for the property repairs. The checks are payable jointly to the business and the homeowner. The business obtains limited power of attorney (POA) documents from the homeowners authorizing it to endorse and deposit the checks. Can we rely on the POA for these deposits, without the homeowner’s endorsement? Should the POA be notarized? Should the business endorse as power of attorney for the homeowner?
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Yes, your bank may rely on a power of attorney document that grants your business customer the authority to endorse a check on a homeowner’s behalf. In fact, the Illinois Power of Attorney Act requires you to comply with an agent’s directions that are in accordance with the agent’s POA document, “and any person who…
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What language should a power of attorney document contain in order to give a trustee’s agent authority with respect to a trust? Does the instrument establishing the trust need to contain any specific language to allow an agent with a power of attorney over a trustee to exercise authority over the trust?
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In general, a document granting a power of attorney to an agent of a trustee that involves more than purely ministerial actions should include language specifically stating the activities that are included in the grant of authority. The powers listed in the Illinois “statutory short form” Power of Attorney for Property are not as comprehensive…
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We have a client who presented a Power of Attorney for a joint account. The agent is not the joint account owner. Do we need to notify the joint account owner before allowing the agent to transact on the account as an agent?
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No, we are not aware of any law requiring you to notify a joint account owner before an agent with a power of attorney transacts on the joint account. Generally, an agent granted a power of attorney over financial institution transactions may exercise control over bank accounts to the same extent as the principal. Consequently,…
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A son with power of attorney would like to have access to Online Banking for his father’s account. Is this legal in Illinois?
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Yes, this is legal in Illinois, provided that the son produces certain information, including the power of attorney document that grants him the authority to act on behalf of his father. The Revised Uniform Fiduciary Access to Digital Assets Act requires a custodian of an individual’s “digital assets” to provide access to an agent acting…
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Our customer is the trustee of her trust. Her two sons are named as successor trustees. One son was granted power of attorney over her. He would like to amend his power of attorney document to give him authority to execute transactions on behalf of the trust. Is that permissible?
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Yes, the power of attorney document may be amended to expressly permit the son to exercise authority over the trust. Illinois law permits an agent with power of attorney to exercise all powers with respect to a trust that the principal could exercise if she was not disabled, except that the agent may not revoke…