Can a power of attorney transfer money to themselves? The short answer is it depends.
In this article, we’re going to take a look at the specific nuances that determine whether a power of attorney can transfer money to themselves or not. We’ll also answer some of the most common questions we get on this topic.
That said, if you’re just looking to prepare for the future, you may be interested in our free series of content dedicated to opening a private bank account and accessing wealth management.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Can a Power of Attorney Transfer Money to Themselves?
- What Can a Power of Attorney Do?
- Frequently Asked Questions
- Ready to Explore Your Options?
Can a Power of Attorney Transfer Money to Themselves?
No, a power of attorney cannot transfer money to themselves without a clear rationale. In most cases, the only justifiable reason for a power of attorney to transfer money to themselves is when charging a small service fee for carrying out the duties referenced in the POA. That said, the power of attorney should obtain written consent from the principal before engaging in any transfers themselves.
When acting as a power of attorney (similar to acting as an executor), individuals should maintain accurate, detailed, and transparent records regarding any decisions. This is especially important when making financial decisions. This can protect the power of attorney from personal scrutiny and can also act as a rationale to rule out any claims of self-dealing.
What Can a Power of Attorney Do?
What a power of attorney can do ultimately depends on the type of power of attorney issued and (if restricted) the specific activities and assets included in the power of attorney.
For example, with a general power of attorney, the individual assigned can carry out any financial transactions that are in the best interest of the principal. Alternatively, a power of attorney with limitations only involves specific actions and assets.
A Power of Attorney Can…
Do whatever is permitted by the powers included in the power of attorney to reasonably carry out the desired actions and act in the best interests of the principal.
A Power of Attorney Cannot…
Do anything outside of the powers included in the power of attorney or act in a way that is deemed unreasonable when carrying out the desired actions, while not acting in the best interests of the principal.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Frequently Asked Questions
Below are two of the most common questions that we receive from people asking “can a power of attorney transfer money to themselves?”. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can a POA Withdraw Money From a Bank Account?
Yes, a POA can withdraw money from a bank account. But, this power must be included in the power of attorney signed by the principal. That said, if you have issued a general power of attorney, the person empowered to act on your behalf can do so as long as it is in your best interest. On the other hand, a limited power of attorney may exclude certain assets or activities, which may not include withdrawing money from bank accounts.
Can a Power of Attorney Transfer Property to Themselves in California?
A power of attorney cannot transfer property to themselves in California. This includes transfers related to real assets like real estate and financial assets through bank transfers. This is commonly known as self-dealing. And, most states have clear laws against it. Self-dealing refers to a power of attorney gifting property to themself from the principal or purchasing assets at a below fair market value.
Ready to Explore Your Options?
If you would like assistance navigating your banking options in the USA, we can help.
You can access GlobalBanks USA, our dedicated US account opening service, in just a few clicks.
GlobalBanks USA is a personal account opening solution. When you join, you receive dedicated account management, tap into our team’s expertise, and direct banker introductions.
Of course, if you have any questions, please contact us directly.
