Can a bank refuse a durable power of attorney?

Why a bank may reject a document

Some asset holders may treat a durable power of attorney as stale with the passage of time.

Banks and investment institutions have refused durable powers of attorney even when the documents state that authority continues through incapacity. An agent generally must give each financial institution a copy, and sometimes the original, before exercising authority there.

Acceptance rules depend on state law

Delaware law requires acceptance of an acknowledged personal power of attorney in specified circumstances, subject to statutory exceptions. Delaware law also provides for an order compelling acceptance and specified damages and costs when a person refuses in violation of the statute.

Wisconsin permits a third party acting in good faith to refuse an acknowledged power of attorney within 10 business days of presentment, but only on grounds listed in the statute. A Wisconsin person who requests a certification or translation must accept the document within 5 business days after receiving it, absent another good-faith reason to refuse.

Wisconsin refusal grounds

Wisconsin law limits refusal to listed grounds. One provision refers to a report to an elder adult at risk agency or law enforcement agency stating a good-faith belief that the principal may be subject to abuse, neglect, exploitation, or abandonment by the agent.

Timing under the UPOAA

The Uniform Power of Attorney Act practitioners describe an institution accepting or rejecting a power of attorney within 7 business days, with up to 5 additional business days for review when there is a valid reason. This timing statement comes from practitioner commentary.