Last year we opened a joint account for a father and son. Since that time the son has been named POA for the father. The son is now requesting that revise the joint account by adding the son's wife as an additional owner. The son will sign the revised signature card and also sign for his father as POA. I have reviewed the POA paperwork and cannot find that it specifially gives him the right to add owners to his father's accounts in his capacity as POA. However, since he was already a joint owner on the account does that give him the right to add his wife as a joint owner?

Personally, I would tell him no. If he wants to close the account and open a new account, then so be it. He can write you a check to close the existing account and then open the new account. It will get the bank out of any future dispute over the legality of the move.

I suggest you consult with your bank counsel regarding the son's authority under the father's POA to agree, as his father's attorney-in-fact, to the addition of a co-owner on the joint account. Adding a co-owner on a joint account will create a right of survivorship interest in favor of the new co-owner.

Some states have laws which provide that an attorney-in-fact can only create a right of survivorship interest in the principal's property if the POA specifically grants such authority to the attorney-in-fact. In those states, language in the POA along the lines of "my attorney-in-fact can do anything I could do" will not satisfy the specific grant of authority requirement.

Hence my suggestion that as current co-owner of the funds, that he do a complete withdrawal and close the account. What he does after that as long as it is in his authority is totally up to him.