Why won't the bank accept my father's Power of Attorney?

Full question:

My father executed his Power of Attorney on 11 May 2005. It was prepared by a lawyer. My stepmother is named as his Attorney-in-Fact. I am his daughter and was named his alternate Attorney-in-Fact. His wife is incompetent to manage his affairs now due to Alzheimers. I have tried to place his POA on the record at his bank after numerous confusions and delay as to it's authenticity, i.e., date of instrument and authorized copy. The impressed 'seal' does not come through on the photocopy as authorized by the POA. The bank is stating that he needs a POA with a 'current' dated copy. His condition with Parkinsons is a debilitating disease and he was diagnosed in 2004 and then he executed his POA in 2005. What authority does the bank have to deny acceptance? The notary that notarized the document's commission expired in 2007. I have been a notary for 30 years and I would think that anything that I notarized years ago are still good documents on the records. Is the bank just giving me the run around and don't know how to handle this POA?. I live in Maryland and my father lives in New Jersey. His POA was done in NJ. This is my third act dealing with family members and I have had no problem acting for a loved one. Also, can I attach a Physician's Statement as an addendum to the POA?

• Category: Power of Attorney
• Date: 04/07/2025
• State: Maryland

Answer:

The organization the agent is dealing with may decline to accept the power of attorney (POA). Many banks have their own forms of POA and often require these instead of any other version. It's common for banks to refuse to accept older POAs, sometimes considering those over six months as 'stale.' While state law protects individuals or organizations receiving a POA from liability, acceptance can still vary. If a bank refuses to honor a valid POA, they may be liable for damages caused by their refusal, including attorney's fees and court costs. However, banks are allowed time to consult legal counsel regarding the POA, and delays may be reasonable under certain circumstances.

In New Jersey, banks are required to accept a POA that conforms to the law unless they have valid reasons to refuse, such as doubts about the authenticity of the signature or knowledge of the principal's death or disability at the time of the POA's execution (N.J. Stat. § 46:2B-13). They are not obligated to act on a POA presented more than ten years after its date unless the agent is a close relative. If the POA states it becomes effective upon the principal's disability, the bank must be provided proof that the principal is indeed disabled.

If the bank refuses to accept the POA, they must notify the agent in writing, stating the reason for the rejection. Additionally, if the original POA is unavailable, a bank may accept a photocopy certified as a true copy by another bank or the county recording office (N.J. Stat. § 46:2B-13(f)).

Regarding the Physician's Statement, you may attach it as an addendum to the POA to provide further evidence of your father's condition.