If you’re wondering “can a POA withdraw money from a bank account?” the short answer is “yes”.
However, there is a wide range of restrictions and nuances that both the account holder and the power of attorney need to consider.
These restrictions will apply whether you are banking with one of the most exclusive private banks in the world or with a local bank.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can a POA Withdraw Money From a Bank Account?
- What Can a Power of Attorney Do?
- What Can a Power of Attorney Not Do?
- Frequently Asked Questions
- Ready to Explore Your Options?
Can a POA Withdraw Money From a Bank Account?
A POA can withdraw money from a bank account. However, this is only possible if the power of attorney gives them the power to withdraw money. Additionally, the power of attorney needs to be filed with the financial institution where the account is held prior to any withdrawals.
Not surprisingly, banks are very particular when it comes to power of attorney. For example, they will only allow the specific actions that are covered within a power of attorney to be taken. In fact, in many cases, banks may refuse a power of attorney or request additional supporting documentation prior to allowing a transaction to take place.
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What Can a Power of Attorney Do?
A power of attorney can take any action that is covered in the supporting documentation. That said, when dealing with financial institutions, the specific power of attorney will need to be filed and approved prior to any transactions taking place. So, if you are trying to determine can a POA withdraw money from a bank account, it depends on whether this is in the POA.
What Can a Power of Attorney Not Do?
A power of attorney cannot take any action that is excluded from a power of attorney. Importantly, an action does not need to be referenced to be considered excluded. Instead, any action that is not written into a power of attorney is automatically excluded. So, if you are trying to determine can a POA withdraw money from a bank account, it depends on whether this is in the POA.
Frequently Asked Questions
Below are two of the most common questions that we receive from people wondering if a POA can withdraw money from a bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Does the POA Mean on a Bank Account?
On a bank account, POA means power of attorney. Importantly, a POA on a bank account typically has very specific powers. As a result, banks will only release funds or carry out transactions that directly relate to the power of attorney.
Why Would the Bank Deny the Power of Attorney?
There are many reasons why a bank may deny the power of attorney on a bank account. With this in mind, it’s important to follow the bank’s specific instructions for filing a power of attorney. After filing, the power of attorney can be used to carry out banking activities designated by the power of attorney. For example, if a power of attorney states that a can withdraw money from a bank account, then this should be permitted by the bank.
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