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PenFed and Power of Attorney
Old 03-11-2010, 05:57 PM   #1
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PenFed and Power of Attorney

I want to establish an account for my father, as his agent. He has Alzheimer's. Penfed insists that I get my father (in front of a notary) to sign a document indemnifying Penfed against loss. My father no longer has the capacity to understand such a document and cannot therefore legally contract to do anything. My understanding is that the primary purpose of the POA is to allow me to act as his fiduciary in the event of mental incapacity. Am I right in thinking that this is an absurd requirement? Should I just move on? What good is a POA if I can't invest on my father's behalf?
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Old 03-11-2010, 06:08 PM   #2
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Must get POA prior to letting the ALZ get to the point where this occurs
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Huh?
Old 03-11-2010, 06:12 PM   #3
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Huh?

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Originally Posted by Oberst_One View Post
Must get POA prior to letting the ALZ get to the point where this occurs
The POA was legally executed years ago. It survives the incapacity of the principal. Now what?
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Old 03-11-2010, 10:30 PM   #4
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OP:

I have been there and can sympathize with you.

I have power of attorney for my in-laws and parents.

Here is what I found out, "real world".

Nearly all financial institutions have their "own power of attorney" papers.

You have to fill out "their" power of attorney paerwork.

The one you have, even though, prepared by an attorney, etc. is not recognized.

I have gone through the same as you, the credit union will say, your mother in law has to sign the papers.

I say she cannot do it, she has dementia and cannot speak english. I have power of attorney.

The only way I found to work around the system is if you are lucky, put your parents money in your bank. A bank where they know you well, and will give you extra consideration

It also, helps, if you have a large sum of your own money there too.

Many people do not realize, a power of attorney, is not honored by many financial institutions.

Just my real life experience.
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Old 03-12-2010, 04:00 AM   #5
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OP:The only way I found to work around the system is if you are lucky, put your parents money in your bank. A bank where they know you well, and will give you extra consideration
Problem is, I have exhausted all other methods of insuring FDIC coverage, short of spreading the money around numerous banks. Othrwise this would not be an issue.
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Old 03-12-2010, 08:40 AM   #6
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hellbender, it might be wise to check with your attorney about getting yourself named as guardian/conservator for your father. Since this is court ordered, I think you will find it carries a lot more weight with financial institutions than does a POA. At least that was our experience.

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Old 03-12-2010, 08:54 AM   #7
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My experience, also, unfortunately is the same as you and Wolf have experienced. If any institution ever accepted DWs POA on its own, I can't remember that circumstance but I can remember many where I needed to fill out their own forms. In the case of PenFed, it was a form to indemnify them against loss, another to certify that I am who I claim to be, in addition to the original POA.

I suppose I can understand that you might hold a POA that might later be changed and not allow you the power you think you have so the bank wants to protect itself. I wonder how that differs from the executor of a will.....maybe because he/she needs to get empowered by a court judgment? ....or the backup trustee of a trust?
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Old 03-12-2010, 03:33 PM   #8
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OP:

You mentioned, FDIC, insurance. Not sure what you mean. Are you trying to spread money around, so the "money" is insured.

If that is the problem, you can increase the FDIC limits by the way the accounts are titled. (at the same institutiion).

You can increase the amount of FDIC coverage to way more than $250K

Also, if the money is in a Trust, you can also increase the FDIC. coverage by the number of beneficiers.

Sometimes, you have to sacrifice higher returns, by putting "monies" in a local bank/credit union, where you can speak to a person directly.

Also, be careful when talking to any CR. They may be very nice, but I have found most if not all CR's do not understand Trusts, FDIC limits,
joint accts, beneficiaries, probate, etc.

There is not enough space here to go into the details, but I know the issues you are going through. Been there.

Wait till you go through the process of settling the "estate". Just be sure all of your paperwork is in order before anyone passes.

Keep us posted. I think, other's on this forum will be surprised on how a POA does not work in the real world.

One, other comment. Most attorney's will not tell you upfront the issues you will have with a POA.
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Old 03-12-2010, 04:04 PM   #9
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Some state's have laws which prohibit financial institutions from requiring their own form.

More frequently, a state might have a law which says a power of attorney must be accepted if it meets certain requirements. You might have to sign an affidavit saying that it has not been revoked.

I have never had a problem with a power of attorney being accepted by a financial institution.. Maybe it is because I am a lawyer. If they give you grief ask them to run it past their legal counsel for sufficiency.
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